Sales 7 - Common Agreement Questions
HDM Capital PPA – Questions and Responses (Ordered by Section)
Section 2(b)(vi) – Use of Solar System
Objection: It says the solar system cannot be used to heat a swimming pool. We have a swimming pool with a heater—does that disqualify us?
Response: This clause applies to systems used solely for solar water heating. Systems used for general household power, even if a pool heater is present, still qualify for tax credit eligibility.
Section 2(b)(iii) – Taxes on the System
Objection: HDM owns the system, do I still have to pay taxes on it?
Response: In most states, there are no taxes on power. The only amount you pay for the system is what the installer is charging. The agreement states that the installer is collecting the prepayment of power on our behalf.
Section 2(b)(ii) – Ownership and Liens
Objection: If HDM defaults on this agreement, such as by not properly maintaining the solar panels, shouldn’t we be able to invalidate this agreement and take ownership of the solar?
Response: HDM is required to maintain the system in order to claim the tax credit. Ownership transfer rights are handled under Section 8.
Section 3 – Performance Guarantee
Objection: The agreement guarantees 60,064 kWh in six years, but Exhibit A lists 70,664 kWh. Why are they different?
Response: Engineering projections show 70,664 kWh; however, the 85% production guarantee (60,064 kWh) accounts for potential weather or shading variations outside of HDM’s control.
Section 5 – Changes to the Agreement
Objection: The contract mentions 'reasonable notice' for access but doesn’t define it.
Response: Reasonable notice typically means 2–5 business days. If more time is needed, HDM can adjust the schedule accordingly.
Section 6(a) – Power of Attorney
Objection: It says we would be giving HDM Power of Attorney to act on our behalf—why?
Response: This is solely for the purpose of achieving the NEM Service.
Section 6(e) – Tax Credits and Incentives
Objection: We waive our right to any and all future credits?
Response: Yes. HDM claims all tax credits in exchange for the upfront discount given to the homeowner.
Section 7(b) – Late Payments and Interest
Objection: There’s mention of a late payment and 1.5% interest—why would that apply to me?
Response: This would only apply if you choose to continue the service after year 20, the additional term or second additional term.
From 11(c) Term and Termination
Section 8 – Purchase of the Solar System (Fair Market Value)
Objection: It says I can purchase at fair market value, but HDM defines that themselves..
Response: HDM’s MOU clarifies that ownership transfers back to the homeowner at no cost after 6 years of production. The purchase option is a formal mechanism for that transfer.
Section 8 – Transfer of Ownership
Objection: At the end of six years, will HDM automatically reach out about transferring ownership, or will I get charged ongoing fees?
Response: Yes, it is HDM’s obligation to reach out to you. We cannot give you the system without your consent. HDM transfers the system to the homeowner at no cost after 6 years.
From the MOU:
Section 9 – Administration Fee
Objection: What happens after year 6 if I stay in the agreement?
Response: If you choose to stay in, there’s an annual admin fee billed after the sixth anniversary, which increases 2.9% yearly. Most homeowners opt to take possession of the system.
Section 10 – Sale of Property and Assignment
Objection: If I sell my home, the new buyer must agree to the same contract—won’t that complicate selling my house?
Response: The system is prepaid, so there’s nothing to buy out. The transfer to a new homeowner is a simple, half page, add-on warranty process that typically takes less than 10 minutes.
Section 12(a) – Access to Property
Objection: What counts as reasonable notice for property access?
Response: Reasonable notice generally means 2–5 business days. In emergencies, HDM will attempt to contact you before entering.
Exhibit B – Mechanic’s Lien Warning
Objection: If HDM is paying for the installation, how can I be held liable for liens?
Response: HDM files a UCC-1 financing statement to confirm ownership of the system until it transfers to you. It’s released when you move or refinance.
From 2 b (ii)
Battery Agreement – Access and Maintenance
Objection: The battery agreement says HDM can access the property anytime after installation. What’s acceptable notice?
Response: Notice is always given in advance, typically 4–5 business days, unless there’s an emergency.
Battery Agreement – Operation Control
Objection: It says HDM controls how and when the battery charges or discharges. How will that work?
Response: This is correct, HDM may use the battery for grid services with the utility to help stabilize the grid. This is very common in the market today. The battery will always have reserves in the case of an outage.
Battery Agreement – Assignment Rights
Objection: HDM may assign or transfer the agreement without notice or consent. Can that be changed?
Response: HDM cannot modify the contract language, but in practice, such assignments don’t affect the homeowner.
Battery Agreement – Optimization Services
Objection: Can I opt out of optimization programs entirely?
Response: Yes. You can opt out at any time by emailing sales@hdmcap.com, and you’ll remain opted out unless you choose otherwise.
Battery Agreement – Ownership Transfer
Objection: When we take ownership of the system at year 6, will HDM retain any rights to the battery?
Response: No. Once transferred, all rights and control of the battery belong solely to the homeowner.
Sec 8 (e)
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