Lease — Palmetto / Lightreach
The lease option runs through Palmetto / Lightreach. It’s a strong option for homeowners who don’t want their credit involved and like the idea of bundled service.
Term options
Section titled “Term options”Palmetto offers two contract lengths:
| Term | Notes |
|---|---|
| 10 years | Shorter commitment, higher monthly |
| 12 years | Lower monthly, longer commitment |
Escalator options
Section titled “Escalator options”The escalator is not an interest rate, but as far as the homeowner’s wallet is concerned, it acts like one — it’s the rate at which their monthly payment goes up over the term.
| Escalator | What happens to the monthly |
|---|---|
| 0% (fixed) | Payment never changes — highest starting payment |
| 0.99% | Payment escalates slowly — middle of the road |
| 1.99% | Payment escalates fastest — lowest starting payment |
Sunny’s standard sell: 12-year @ 1.99% escalator
Section titled “Sunny’s standard sell: 12-year @ 1.99% escalator”“We’re going 12-year every time, and 1.99 escalator. We’ve sold so many of those. Anybody has yet to choose any other options aside from 12-years on 1.99.” — Jonathan
If you’re new and not sure which combination to lead with, default to 12-year / 1.99% escalator. It produces the lowest starting monthly, which is what most homeowners care about. The other combinations are alternatives for specific preferences — but the vast majority of Sunny deals close on 12-year / 1.99%.
Why homeowners like it
Section titled “Why homeowners like it”| Feature | Detail |
|---|---|
| Credit hit | None — no hard pull, doesn’t show on credit report |
| Credit minimum | 650 — significantly lower than the 670–700 most solar lease products require |
| Yearly service | Included. A truck shows up annually, replaces air filters, checks every unit. Homeowners are not upsold anything during these visits. |
| Co-signer | Anyone can co-sign — no title/deed requirement, can live anywhere (e.g., a friend in Alaska) |
| Refrigerant + repairs | Bumper-to-bumper for 12 years — leaks, replacements, anything that breaks |
That co-signer flexibility is a big deal. Many homeowners can find a willing co-signer easily.
End of lease term: what happens at year 12
Section titled “End of lease term: what happens at year 12”When the lease term ends, the homeowner has three options:
| Option | What happens |
|---|---|
| Renew | They get brand-new equipment for the next term — not a continuation of the units they’ve been using. So they reset to the newest technology every 12 years. |
| Buy out | Sunny quotes them a buyout amount, typically about 20% of the original total. They own the system outright. |
| Remove | Removal is offered as an option but virtually nobody chooses this, especially after their boiler has been decommissioned. |
The renewal option is a strong selling point — the homeowner never has aging equipment. Sell it as: “Every 12 years, you reset to the newest, most efficient technology — at no extra cost.”
When homeowners compare lease vs ownership, keep the system lifespan honest: quality mini splits can last well beyond the 12-year warranty period with proper use and maintenance, but technology changes. The lease frames that as a benefit: service is included during the term, and renewal gives them newer equipment instead of asking them to live with 15- to 20-year-old technology.
Buyout flexibility
Section titled “Buyout flexibility”| Question | Answer |
|---|---|
| Can homeowners buy out before the term ends? | Yes |
| When? | Anytime |
| Penalty? | None |
The homeowner is never trapped. If they come into money in year 4, they can buy out the lease at any time without any penalty.
Why reps like it
Section titled “Why reps like it”- Easy approval flow (low 650 credit threshold, instant decisions in most cases)
- Recurring service relationship for the company → drives referrals
- Good rep commission terms
The funding timeline trade-off
Section titled “The funding timeline trade-off”When to lead with lease
Section titled “When to lead with lease”- Homeowner explicitly says they don’t want a credit hit
- Homeowner asks about service / maintenance bundling
- Homeowner has weak credit but a willing co-signer
- Homeowner wants long-term certainty without ownership
- Homeowner is also being sold solar (lease’s lower 650 credit threshold makes the bundle approval easier)
When NOT to lead with lease
Section titled “When NOT to lead with lease”- Homeowner wants ownership / wants to refinance later
- Homeowner is very price-sensitive on total interest paid (1.99% escalator over 12 years can add up — a Green Sky 6.99% short-term loan may be lower total cost)
- Decommissioning + low credit + smaller deal — see NYSERDA / EFS instead
What also has to be signed
Section titled “What also has to be signed”The Palmetto lease contract is only the financing piece. The homeowner also has to sign Sunny HVAC’s installer agreement separately. Both must be signed before install — see Site survey for the install contract request workflow.