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1 Residential Solar Guide: Save 40% Off Total System Costs WIth Current Incentives and Available Credits! Contact American Solar Today!

2 This resource guide highlights what homeowners need to know about leasing a solar electric system. We ll discuss how leasing works and its advantages, cost factors and incentives. Finally, we ll identify important qualifications for your solar contractor and leasing partner. More Homeowners Favor Leasing Leasing is gaining traction with homeowners as the preferred purchase method. There are two options for leasing: a low upfront and a prepaid lease. Because of ease and affordability, a greater number of homeowners are choosing to lease their solar electric system. According to the State of California, California Energy Commission and California Public Utilities Commission, 44 percent of all solar installations in March 2011 were owned by a third-party company. By February 2012, the number of systems owned by a leasing company increased to 75 percent. How Leasing Works To provide a leased solar system to a customer a solar contractor partners with a financial company. The contractor designs and installs a solar system customized for your home. The leasing company purchases the system from the solar contractor and leases it to you under the terms of an agreement. The leasing company will maintain the solar system throughout the agreement period. Leasing allows more homeowners to benefit from solar energy for little or no upfront cost. When you select a low upfront lease as your solar investment option, you make one low, fixed monthly payment. This method locks in your electricity rates for the entire length of your agreement, which is typically 20 years. If you choose a pre-paid lease as your solar investment option, you will pay more up-front but could see higher utility savings over the life of the lease agreement. Leasing Advantages If you re interested in solar energy, leasing makes sense for a number of reasons: Affordability. You don t have to come up with a large payment for a solar installation. You can have your system installed with little to no upfront cash if you choose the low upfront investment option. Flexibility. Typically, a leasing company will offer different financing options like a low upfront or pre-paid option. You can choose to pay less, or even nothing, upfront and have larger payments. Or, you can pay more upfront and lower your subsequent monthly payments or eliminate your monthly lease payments. Consistency. Because your monthly payments are fixed with the low upfront lease, you ll know exactly what your electricity is going to cost you each and every month for the next 20-plus years. Utility rate increases won t affect you. 1

3 Savings. The fixed monthly cost for solar power will be less than your traditional utility bill. In fact, you ll save thousands on electricity costs over the life of your solar system. Maintenance-Free. Since the leasing company will own your solar electric system, they will manage installation and monitoring. Plus, the leasing company will take care of all necessary repairs during the entire 20-year agreement period. Eco-Friendly. In addition to locking-in your electricity rates, you ll be using clean energy. Many homeowners are unaware their utilities provide power from fossil fuels, primarily coal. Solar energy reduces this dependence and helps the environment. How Leasing Handles Incentives Incentives are designed to encourage more homeowners to install solar electric systems by lowering associated costs. Your solar contractor and leasing company will handle all incentives on your behalf. The proper paperwork will be completed and the savings passed on to you in the form of lower upfront costs. When leasing, Arizona homeowners can benefit from incentives in the following ways: Federal Tax Credit. The federal government allows homeowners a 30 percent tax credit for the cost of a solar electric system. Although generous, some issues surface for many people who want to go solar. First, you need to owe enough money in personal income taxes to use all of the credit. Second, you need to pay the full system price upfront and wait until tax time to get any money back in the form of lower taxes. When you lease a solar electric system, you don t have to wait for your federal tax credit. Your contractor and leasing company immediately pass on the savings by lowering your upfront costs. State Tax Credit. Like the federal government, Arizona offers a tax credit for its homeowners. The state offers a $1,000 credit on the cost of a solar electric system. This state credit is applied to your lease in the same manner as the federal credit. Utility Rebate. Arizona offers several solar rebate programs for homeowners. However, as time passes and certain targets are met, these rebate amounts are reduced. Major Arizona utilities, including Arizona Public Service (APS), Salt River Project (SRP) and Tucson Electric Power (TEP), all offer solar rebates. To determine the current rebate amounts available, contact your solar contractor or visit the DSIRE (the Database of State Incentives for Renewable Energy) website. 2

4 Just as with the federal and state tax credits, any utility rebates are processed by your contractor and leasing company and used to reduce your upfront costs. Why American Solar and Sunrun? American Solar has partnered with Sunrun to provide affordable investment options. Choosing the right solar contractor and leasing partner can make all the difference in your satisfaction and success. American Solar Sunrun American Solar & Sunrun Reliability With you from start to finish, providing a turnkey solar solution Profitable and financially sound company 10 year guarantee on workmanship High quality products Clean record and positive marks with BBB Operate statewide Detailed product deployment Roofing License Focused on safety and preventative action toward safety issues Customer Satisfaction High level of customer satisfaction Referral base is a large % of the business In-home evaluations provide a personal touch and accurate quoting Free roofing evaluation included Dedicated to customer service Experience Experts in the AZ market, with over 11 years of experience and over 3,500 customers Strong relationships with the utilities Highly trained employees with technical know-how With over 20,000 customers, Sunrun owns more solar systems around the country than the competition Sunrun partners install within three months on average and provide a high quality installation Sunrun only partners with the highest quality solar installers in the business Sunrun uses a professional-grade meter that sends data via SMS so the customer is always protected through real-time monitoring Specially trained agents to help you through assigning your agreement to a new homeowner should you sell your home Sunrun answers over 90% of customer service phone calls within one minute or less Financial stability Sunrun s systems are backed by large financial institutions US Bank, Credit Suisse, etc. Checks and Balances: Contractual obligations between parties Sunrun works with a third-party to audit partners installations to ensure the highest quality workmanship Accountability between parties benefits the customer Combined experience, best of both worlds Premium Partnership Sunrun partners with the best local installers 3

5 Let s Get Started! There s never been a better time to go solar. You can be on your way to saving money in no time. We re happy to prepare a free, no obligation analysis and a leasing cost estimate. To do this, we start by collecting a few pieces of information: 1. To size your system accurately, we review the last 12 months of your electricity usage in kilowatt-hours. Your past bills or your utility s website will supply the needed information. 2. Call and schedule a home inspection. It is very important for a solar contractor to inspect your roof, utility access and area surrounding your home. Solar installers can t provide you an accurate quote without visiting your home. Call or us today! We re here to answer any questions or provide your free analysis and leasing quote. American Solar Central Arizona 1475 N. Scottsdale Rd., Suite #410 Scottsdale, AZ Tel: Fax: Southern Arizona 2539 North Balboa, Suite 115 Tucson, AZ Tel: Northern Arizona Tel:

6 American Solar 1475 N. Scottsdale Rd., Suite #410 Scottsdale, AZ Tel: Fax: Southern Arizona 2539 North Balboa, Suite 115 Tucson, AZ Tel: Northern Arizona Tel:

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