Lock In 30% Savings No Matter Your Installation Timeline
Photon Brothers is excited to offer a new Prepaid Energy Service Agreement (ESA) option for Deferred Ownership on solar and battery projects. Customers pay the same net cost as they would have with the federal tax credit, but receive the savings up front — no filing, no waiting, no eligibility concerns. You pay upfront just like a typical solar purchase, but the system is initially owned by a third party for six years, after which ownership can be transferred to you. This is our lowest cost to ownership and the best value in the industry.
How Deferred Ownership Works
- You pay upfront for your solar or solar plus battery system, just like you would with a standard purchase.
The system is installed by Photon Brothers, but is temporarily owned by a third party.
You receive a 30% discount on the total cost right away, so there’s no waiting for a tax refund.
After six years, ownership can transfer to you. All warranties stay in place.
Power Purchase Agreement (PPA)
A Prepaid Power Purchase Agreement (PPA) is an upfront payment agreement where the customer prepays for the solar energy their system will produce over time. The system is owned by a third party for six years, after which ownership is transferred to the customer through a fair market value process.
Energy Storage Service Agreement (ESSA)
A Prepaid Energy Storage Service Agreement (ESSA) is similar to a Prepaid PPA but applies to battery storage. The customer prepays for the right to use the stored energy services provided by the battery system, while ownership is initially held by a third party and later transferred to the customer.
What is Fair Market Value (FMV)?
Fair Market Value is the estimated price a system would sell for on the open market, between a willing buyer and seller. At the end of the PPA or ESSA term, FMV is used to determine whether the system can be transferred to the customer.
FMV is established at year six, when the remaining value of undelivered energy or storage services exceeds the fair market value of the system. When this occurs, the transfer can take place at no additional cost to the customer.
Ready to get started? Contact our team and lock in your savings today.
Why This Works
Although the residential solar tax credit has expired, the federal incentive is still available for commercial solar installations. By structuring your system as a Prepaid Power Purchase Agreement, your project qualifies under the commercial rules, even though it is installed on your home.
In this structure, the system is temporarily owned by a third party. This allows 30% savings to be applied up front and passed directly to you. After six years, ownership is transferred to you.
This approach is fully compliant, widely used in the solar industry, and designed to help homeowners continue accessing meaningful savings even after residential incentives have ended.
Key Benefits
- 30% Discount Compared to Cash Price: Enjoy a 30% discount on the effective cost versus purchasing the system outright. This is made possible because a third-party owns the system and sells the associated tax credits to investors, passing those savings directly back to the customer in the form of lower cost of ownership.
- No Lien on Your Property: Unlike other solar options, the Energy Service Agreement places no lien on the home. This keeps property titles clear, avoids complications with mortgages or sales.
- No Rate Escalators for Long-Term Stability: Lock in a fixed, competitive rate with no annual escalators. This protects against inflation and rising utility costs
- Easy Transferability When Selling Your Home: Simply contact Photon Brothers to inform us of the new owners, and we will transfer the remaining agreement to them.
