Pre-paid Solar PPA

[CANative]

PG&E got sued out of existence by ambulance chasers after 3 or 4 years of devastating wildfires up here.

 

[Elliott]

My son just bought a house near San Diego. He says to me, "The solar installation happens next Tuesday, $25K, and I won't have $300 / month electric bills, and the the 'government' is paying for 1/3 of it."
He also has a tiny electric BMW. I just nodded since I don't understand any of it.

 

[Meandering]

The new Green-Goddess-and 22 other Wack-Jobs have given us advanced notice that we may only have 12 years remaining. I am sending a memo to the Green-Goddess of DC--- Please create some new regulations including a law that all Solar Systems have to be paid off in full on or before January 2031.

Just be glad we had a George Washington,
Cause Britain only has a year and a half left.

We have 18 months to save world, Prince Charles warns Commonwealth leaders
11 July 2019 • 9:00pm

 

[Addie]

In California a "Power Agreement" is a fancy word for a 19-20 year Leased system. Also even though the seller supposedly pre-paid the electric bill for 19 years ? The inverter, panels etc still have to be maintained ? So there is a good chance there is still a lease payment on the equipment. If not WHO repairs that bad-boy when those cheap chinese solar panels. Fannie says the Solar panels may "NOT" be included in the appraised value, the property must maintain access to an-alternative source of electrical service " IE must be able to reconnect to a good old standard meter. The other reason some builders do this is they get the tax credit not the buyer and in this case th builder may be getting a $10k-20K tax credit so he really never paid $40K. Also is the power agreement in the new buyers name ? PGE

The "gift" or concession is not real estate. Substitute the pre-paid electricity for 19 years of free grocery's or paying off your $40,000 student loan, or giving you a new Toyota Prius. Worse is did the seller add or stack the $40K on top of the sales price or he inflated the contract price get his money back ? If so you may be short $30 or 40K on your appraisal. That nice letter from the buyer or seller is just a dear John letter hoping that you place value on a non-real estate item. Worse it's all based on 19 years of a Prospective and "hypothetical assumptions. Imagine if the new buyer only lives there for a few years, how does he/she get that $40K back ?

If this is PG&E this is not a company I would depend on for 19 years of cheap electricity ! Because on January 14, 2019 PG&E announced that it was filing for Chapter 11 bankruptcy in response to the financial challenges associated with the catastrophic wildfires that occurred in Northern California. How are power agreements being handled and how many ways can a PG&E Null & Void those agreements ? Not even ten Philadelphia Attorneys have the answer because these are the same guys who have power -poles that in some cases are 80 to 105 years old.

Why is this for Fannie? What info you got that I don’t?

 

[Terrel L. Shields]

one of the previous owners pre-paid $40,000 for the solar as a sales perk for the, then, buyer and now seller.

I'd treat it as a concession.