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written by Daniel Stouffer
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Solar Energy System: Rental Contract Terms
You have the option to decide the length of your solar rental contract. We are offering 1-year, 5-year, and 25-year contracts. The longer you agree to rent our home solar units & panels, the greater your financial benefits. We project the greatest cost savings will occur with the longer rental contracts because we will be locking in your electricity rates & related rental fees for the longest period of time. The contract period options are as follows:
Year-to-Year Solar Equipment Rental Term
The Year-to-Year contract period option is an agreement to rent the solar system for a term of one year. It is automatically renewed for consecutive one-year terms, unless the customer gives notice of termination 30-days prior to the end of any contract period. The contract rate for the Year-to-Year option is initially based on the utility rate at the date of signing, or if a customer has a lowest-rate guarantee, then it is based on the lesser of either the utility rate at date of signing or the utility rate at date of installation. However, as the Year-to-Year contract is renewed, the rate changes in accordance with the then in effect utility rate. By way of example only, if a customer has an agreement to rent a solar system for 8¾¢ for each kWh of electricity generated based on the utility rate at date of signing, then the customer will receive that contract rate for the first year. If the customer chooses to renew the Year-to-Year, then the customer is now agreeing to a contract rate equivalent to the utility rate at the date of the renewal. Again by way of example only, if the utility rate at the date of renewal has increased to 9¼¢ per kWh, then the customer is agreeing to the increased rate for renting the solar system and now is obligated to pay the increased contract rate until the next year.
5 Year Solar Equipment Rental Term
The 5-Year contract period option is an agreement to rent the solar system for a term of five years. Like the Year-to-Year, it too is automatically renewed for consecutive terms, unless you give notice of termination 30-days prior to the end of any contract period. The contract rate for the 5-Year option is initially based on the utility rate at the date of signing, or if a customer has a lowest-rate guarantee, then it is based on the lesser of either the utility rate at date of signing or the utility rate at date of installation. And like the Year-to-Year, as the 5-Year contract is renewed, the rate changes in accordance with the then in effect utility rate. By way of example only, if a customer has an agreement to rent the solar system for 8¾¢ for each kWh of electricity generated based on the utility rate at date of signing, then the customer will receive that contract rate for the first five years. If the customer chooses to renew the 5-Year, then the customer is now agreeing to a contract rate equivalent to the utility rate at the date of the renewal.
25 Year Solar Equipment Rental Term
The 25-Year contract period option is an agreement to rent the solar equipment for a term of twenty-five years. Unlike the Year-to-Year or the 5-Year, it is not automatically renewed for consecutive terms. The system will be decommissioned and recovered by our company, or in the alternative, the system may be evaluated for extended performance capabilities and offered to the customer through a buy-off program. The contract rate for the 25-Year option is initially based on the utility rate at the date of signing, or if a customer has a lowest-rate guarantee, then it is based on the lesser of either the utility rate at date of signing or the utility rate at date of installation. By way of example only, if a customer has an agreement to rent a solar system for 8¾¢ for each kWh of electricity generated based on the utility rate at date of signing, then the customer will receive that contract rate for the full twenty-five years.
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