Additional Frequently Asked Questions (FAQs)
What are the Advantages of Leasing a Solar PV System?
The CT Solar Lease program provides a great opportunity to add a solar system to your home without the upfront costs of ownership. CT Solar Leasing is currently providing a no money down opportunity to install a solar system on your property. The lease will provide for a low cost lease payment, fixed for the first 15 years at which time you have the option to extend the lease of an additional 5 years at a reduced cost. And our unique Solar Dividends™ program will even offset some of the future operating costs. It provides many of the benefits of ownership without the upfront cost.
Who is Responsible for Repairs and Maintenance of the System During the Period of the Lease?
Similar to a car lease, the homeowner is responsible for paying all repairs and maintenance during the lease including insurance. However, the CT Solar Lease program requires your installer to warranty labor for the system for a full 5 years. In addition, manufacturer warranties are required for the modules (20 years minimum) and inverters (5 years minimum).
What Kind of Expenses Should I Expect From My System in the First 10 Years?
Research indicates that there should be little or no expenses associated with the system during the first 10 years except as might be caused by weather damage. It is likely that you will have to replace the inverter after 10 or 15 years. It is expected that the value of your Solar Dividends™ account should cover a large portion of that expense. Your installer can provide additional information on projected maintenance costs.
Can I Pre-Pay My Lease?
If you choose, you can pre-pay your lease by paying the total of the lease payments remaining. At this point you are entitled to use the system without additional lease costs until the end of the initial 15 year lease term. However, if you wanted to buy the system you would still be required to pay the Fair Market Value for the equipment and reimburse any unrecognized tax benefits associated with your lease.
What are My Options at the End of the 15-Year Lease Term?
At the end of the initial lease term, you can: 1) extend the lease for an additional 5 years at a significantly reduced monthly payment 2) purchase the system at the then fair market value (determined by CEEF and an independent appraiser) 3) remove the system at your own expense and return it to CT Solar Leasing. You can also choose to work with your installer to upgrade to the latest technology.
If I Decide to Sell My House, What Will Happen with My Lease Payments?
The lease can simply be assumed by the new homeowner, subject to their credit qualification. There are no income restrictions on who may purchase your home or assume the lease. Click here for more information.
If I Decide to Remove the System from My House, How Much Will it Cost?
You are responsible for system removal cost. The actual cost will depend on the system size, design and your installer, with a current estimated cost to remove a typical 5 kW system of about $2500 to $3000. Most installers can give you an estimate of such costs to factor into your leasing decision. Regardless, in the event you decided to remove the system from your home, the cost would be the same whether you owned the system or leased it. However, most home values are increased due to the addition of a solar energy generating system and therefore you will most likely want to leave the system in place.
Can I Cancel My Lease?
In accordance with Federal and Connecticut law, the lease is only cancelable within 3 days of signing the lease document. After that period has expired, the lease may not be cancelled.
Is it Possible to Consolidate Lease Payments with Mortgage Payments?
No. The system is owned by CT Solar Leasing LLC and therefore is not eligible to be rolled into mortgage payments.
How Do I Make Monthly Payments?
For convenience and to keep lease costs low, CT Solar Leasing requires automatic payment from your checking account. The monthly payment will be electronically deducted from your account on your lease due date. If you choose to not have automatic payment, there will be a $10 per month service fee.
How do the Renewable Energy Certificates (RECs) Produced by My Solar PV System Help Me?
A REC represents proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy source, such as a solar PV system. These renewable energy certificates may have tradable value in the marketplace. CT Solar Leasing owns the RECs as the system owner and will aggregate its RECs to provide additional benefits to the homeowner through its exclusive Solar Dividends™ program. As long as the lease is in compliance, CT Solar Leasing will use a portion of the proceeds from the sale of the RECs to provide the homeowner with a reserve for future significant operating costs of the system (such as inverter replacement and out of warranty repairs). The Solar Dividends™ program is administered by CT Solar Leasing which will account for the REC value earned by each system and report the data so you know what you have available. At the end of the lease term, the dollar amount that remains in your Solar Dividends™ account can be used toward the purchase or removal of the system.
Property Tax Exemption - Does it Apply for the Lease Option?
For solar systems installed on or after October 1, 2007 the Connecticut General Statutes exempts from property tax any solar system installed for the generation of electricity for private residential use, provided such installation is for a single family dwelling or multifamily dwelling consisting of two to four units. This exemption applies to the solar system regardless of who owns the system. Thus, the lessee of a solar system will not have to pay property tax on his/her system.
Will There be any Sales Tax on the Lease of Solar Equipment?
No. The Connecticut General Statutes provide an exemption from sales tax for the sale or lease of "solar energy electricity generating systems," which is defined in part as systems or equipment which utilize solar energy to produce electricity at any private residential location. Because a solar system is considered a "solar energy electricity generating system," the leasing of solar systems is exempt from sales tax.
Will I be Able to Claim an Income Tax Credit for this System when I Sign the Lease Agreement?
No. Since CT Solar Leasing owns the system, it is allowed to take advantage of expanded business tax incentives that are not presently available to Connecticut homeowners. This is one of the major benefits of the CT Solar Lease Program - the value of these incentives effectively reduces the monthly cost for the homeowner’s CT Solar Lease
Suppose I Decide to Rent My House, Who Pays the Lease Payments?
The homeowner that signs the lease agreement with CT Solar Leasing is legally responsible for paying the lease payments in a timely matter.
If I Decide to Remove the System from My House, Can I do it Myself?
No. You need to contact an Eligible Installer to remove the system for you. The system should be returned to CT Solar Leasing undamaged.
