LAS VEGAS (KTNV) — This week, a buyer was working with a local Realtor to finalize a home purchase, but there was a particular point of uncertainty the buyer wanted addressed.
The home came with what’s called a solar “power purchase agreement,” where the previous owner agreed to a deal with a third-party vendor to purchase power generated from solar panels on the home.
The buyer wanted to know more about the solar agreement, and the real estate agent wasn’t well-versed — many aren’t — on the ins and outs of home solar contracts, so she consulted with another local Realtor, Dan Robson.
“It can get very complicated and layered,” Robson said Wednesday from his office at Urban Nest Realty on Charleston Boulevard. “It’s important to know, when you’re thinking about buying a house, exactly how that (solar) system is on that roof. Are you assuming a lease? Is it yours outright? There are a lot of variables.”
Solar leases and power purchase agreements can have contracts that last 25 years or longer. It’s a long-term commitment that can haunt homeowners, especially sellers who might see their potential buyer pool diminished because of a solar contract.
“Leases and power purchase agreements, the third-party-owned agreements, they pretty much have to be transferred,” says Krystal Hosmer, a solar consultant with Robco Electric who also advises Nevada lawmakers and regulators on ways to help protect consumers from predatory selling practices. “The way those agreements are written, there’s no getting out of them.”
Both Robson and Hosmer say it’s important for consumers to read and understand any contract they might sign. And they say to watch out for high-pressure sales tactics and door-to-door salespeople ready to sign homeowners on the spot.
“A lot of customers believe what the sales rep has told them,” Hosmer says. “They believe that if they don’t want the system any longer, the company will take it off their roof for free….and that’s never true.”
Amid growing numbers of complaints from consumers, the Nevada State Contractors Board recently started an investigative unit that focuses only on the solar industry.
The office exists to look into allegations of theft, fraud, abandonment, diversion of funds, and unlicensed contracting work.
Board officials say the body receives close to 3,000 complaints each year, with about one-third of them being related to the solar industry, which has long faced questions about questionable business practices and high-pressure sales tactics.
The board is asking anyone who thinks they may have been the victim of questionable practices by a solar company to contact it by calling 702-486-1100. Residents can also visit the State Contractors Board website at nscb.nv.gov.
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