residential leasing

[russ]

@ Energy Efficiencies - Agreed 100% - The old saying that when something sounds too good to be true it usually is applies.

Claims are made that are totally unsupported - no supporting documents offered. The leasing sites do NOT offer their lease up for public inspection - wonder why?

Utilities are much more controlled and regulated. The leasing companies are much more like Kirby vacuum cleaner or home siding salesmen - get in and get a deal - the details are none of the suckers business anyway.

The offer of a 500 dollar kickback if you line up a friend or neighbor is really low in my opinion.

[Jburgess]

Russ,

I could try to post a text copy of the lease Solar City offered me, if you have not seen one.

[russ]

I would like to see it and I expect many others would as well.

Thanks,
Russ

[Jburgess]

Sorry about the formatting. Part 1

PERFORMANCE GUARANTY AND LIMITED WARRANTY AGREEMENT

Welcome to SolarCity!

This Performance Guaranty and Limited Warranty Agreement (this “Limited Warranty”) is SolarCity’s agreement to
provide you warranties on the solar panel system (the “System”) you leased. A description of the System you leased is
attached to this Limited Warranty as Exhibit A. The System will be professionally installed by SolarCity at the address you
listed in the lease agreement (the “Lease”). We will refer to the installation location as your “Property” or your “Home.”
This Limited Warranty begins when we start installing the System at your Home. We look forward to helping you produce
clean, renewable solar energy at your Home.

1. Limited Warranties.
(a) Limited Warranties. SolarCity warranties the System as follows:
i. Installation Warranty. We will professionally install the System in a good and workman-like manner
according to industry standards and our commitments to you in Section 2. This installation warranty
will run for one (1) year following the completion of the System installation;
ii. Use Warranty. Under normal use and service conditions, the System will be free from defects in
workmanship or defects in, or a breakdown of, materials or components during the Warranty Period (as
defined below);
iii. Roof Warranty. When we penetrate your roof during a System Installation we will warrant roof damage
we cause to areas that are within a three (3) inch radius of our roof penetrations. This roof warranty will
run the longer of (A) one (1) year following the completion of the System installation; and (B) the length
of any existing warranty on your roof; and
iv. Repair Promise. During the Warranty Period, SolarCity will repair or replace any defective part,
material or component or correct any defective workmanship, at no cost or expense to you (including all
labor costs), when you submit a valid claim to us under this Limited Warranty. SolarCity may use new
or reconditioned parts when making such repairs or replacements. SolarCity may also, at no additional
cost to you, upgrade or add to any part of the System to ensure that it performs according to the
guarantees set forth in this Limited Warranty.

This Limited Warranty will continue from the date we start installing the System at your Home through the longer
of (i) the Lease Term (“Lease Term” has the same meaning as set forth in the Lease); and (ii) ten (10) years (the
“Warranty Period”) except for the warranties specified in Sections 1(a)i and iii above, which have shorter periods.
If you have taken over an existing Lease, then this Limited Warranty will cover you for the remaining balance of the
original Warranty Period.
(b) Performance Warranties and Guaranty.
i. Energy Production Guarantee. SolarCity guarantees that during the Warranty Period the System will
generate the guaranteed annual kilowatt-hours (kWh) (“Guaranteed Annual kWh”) of energy set
forth in Exhibit B as follows:

B. If at the end of each successive twelve (12) month anniversary of your first monthly payment
the Actual Annual kWh is greater than the Guaranteed Annual kWh during any twelve (12)
month period, this surplus will be carried over and will be used to offset any deficits that may
occur in the future. If your System produces more energy than the Guaranteed Annual kWh
then this additional energy is yours at no additional cost.

“Actual Annual kWh” means the AC electricity produced by your System in kilowatt-hours
measured and recorded by SolarCity during each successive twelve (12) month anniversary of your
first monthly payment. To measure the Actual kWh we will use the SolarGuard™ Monitoring
Service or the utility provided meter (calibrated to NREL standards) or to the extent such services are
not available, we will estimate the Actual kWh by reasonable means.

“Guaranteed Energy Price per kWh” means $0.088 per kWh with an annual increase of
three-point-five-zero percent (3.50%).

A. If at the end of each successive twelve (12) month anniversary of your first monthly payment
the cumulative Actual Annual kWh (defined below) generated by the System is less than the
Guaranteed Annual kWh, then we will send you a refund check equal to the difference
between the cumulative Actual Annual kWh and the Guaranteed Annual kWh multiplied by
the Guaranteed Energy Price per kWh (defined below). We will make that payment within
thirty (30) days of the end of the calendar year.

For example, if the first twelve (12) month period commences on October 1, 2008 and ends on
September 30, 2009, and the energy the System was supposed to generate is less than the
energy the system was guaranteed to generate during such twelve (12) month period, we will
pay you the difference in the Actual Annual kWh and the Guaranteed Annual kWh multiplied
by the Guaranteed Energy price per kWh within thirty (30) days after December 31, 2009.
See the table below for a real world example.

ii. System Failure. If you are leasing the System during the Limited Warranty Period and the System
ceases to generate any electricity (a “System Failure”) for a whole calendar day, SolarCity will repay
you for the Lease cost you paid during each whole calendar day of the System Failure within thirty
(30) days. Such System Failure payments shall be included for determining payments under the
production guarantee.
iii. SolarGuard. During the Warranty Period, we will provide you at no additional cost our SolarGuard
Monitoring Service (“SolarGuard”). SolarGuard is a proprietary monitoring system designed and
installed by SolarCity that captures and displays historical energy generation data over an Internet
connection and consists of hardware located on site and software hosted by SolarCity. If your
System is not operating within normal ranges, SolarGuard will tell us and we will notify you
promptly.
iv. Output Warranty. The System’s electrical output during the first ten (10) years of the Warranty
Period shall not decrease by more than fifteen percent (15%).

Example Example Actual Example Guaranteed Example
Guaranteed Annual Energy Price Payment to You
Annual kWh kWh

10,000 9,500 $0.20 $100.00

(c) Maintenance and Operation.
i. General. When you sign your Lease you will be given a copy of SolarCity’s Solar Operation and
Maintenance Guide. This guide provides you with System operation and maintenance instructions,
answers to frequently asked questions, troubleshooting tips and service information..
ii. SolarGuard. SolarGuard needs a high speed internet line to operate. Therefore, during the Warranty
Period, you agree to maintain the communication link between SolarGuard and the System’s server and
PV Modules. You agree to maintain and make available, at your cost, a functioning indoor Internet
connection with one available wired Ethernet port and standard AC power outlet within eighty (80) feet
of the System’s AC/DC inverter(s). This communication link must be a 10/100 Mbps Ethernet
connection that supports common Internet protocols (TCP/IP and DHCP).

(d) Making a Claim; Transferring this Warranty.
i. Claims Process. You can make a claim by:
a. Emailing us at the email address in Section 6 below;
b. Writing us a letter and sending it overnight mail with a well-known service; or
c. Sending us a fax at the number in Section 6 below.

ii. Transferable Limited Warranty. SolarCity will accept and honor any valid and properly submitted
Warranty claim made during the Warranty Period by any person who either purchases the System from
you or to whom you properly transfer the Lease.


(e) Exclusions and Disclaimer. The limited warranties and guaranty provided in this Limited Warranty do not
apply to any lost electricity production or any repair, replacement or correction required due to the following:
i. someone other than SolarCity or its approved service providers installed, removed, re-installed or
repaired the System;
ii. destruction or damage to the System or its ability to safely produce energy not caused by SolarCity or its
approved service providers while servicing the System (e.g. a tree falls on the System);
iii. your failure to perform, or breach of, your obligations under the Lease. (such as if you modify or alter
the System);
iv. your breach of this Limited Warranty including being unavailable to provide access or assistance to us in
diagnosing or repairing a problem or failing to maintain the System as stated in the Solar Operation and
Maintenance Guide;
v. any Force Majeure Event (as defined below);
vi. a power or voltage surge caused by someone other than SolarCity including a grid supply voltage outside
of the standard range specified by your utility;
vii. shading from foliage that is new growth or is not kept trimmed to its appearance on the date the System
was installed;
viii. any System Failure not caused by a System defect (e.g. such as making roof repairs); or

ix. theft of the System.

This Limited Warranty gives you specific rights, and you may also have other rights which vary from state to state.
This Limited Warranty does not warrant any specific electrical performance of the System, other than that described
above.
THE LIMITED WARRANTIES DESCRIBED IN SECTIONS 1(a) and (b) ABOVE ARE THE ONLY EXPRESS
WARRANTIES MADE BY SOLARCITY WITH RESPECT TO THE SYSTEM. SOLARCITY HEREBY
DISCLAIMS, AND ANY BENEFICIARY OF THIS LIMITED WARRANTY HEREBY WAIVES, ANY
WARRANTY WITH RESPECT TO ANY COST SAVINGS FROM USING THE SYSTEM.

2. SolarCity’s Standards.
For the purpose of this Limited Warranty the standards for our performance will be (i) normal professional
standards of performance within the solar photovoltaic power generation industry in the relevant market; and (ii)
Prudent Electrical Practices. “Prudent Electrical Practices” means those practices, as changed from time to time,
that are engaged in or approved by a significant portion of the solar energy electrical generation industry operating
in the United States to operate electric equipment lawfully and with reasonable safety, dependability, efficiency and
economy.

[Jburgess]

Part 2

3. System Repair, Relocation or Removal.
(a) You agree that if (i) the System needs any repairs that are not the responsibility of SolarCity under this Limited
Warranty, (ii) the system needs to be removed and reinstalled to facilitate remodeling of your Home or (iii) the
system is being relocated to another home you own pursuant to the Lease, you will have SolarCity, or another
similarly qualified service provider, at your expense, perform such repairs, removal and reinstallation, or
relocation on a time and materials basis.
(b) If you want to return the System to SolarCity under Section 17 of the Lease then SolarCity will remove the
System at no cost to you. SolarCity will remove the posts and waterproof the post area. SolarCity will warrant
the waterproofing for one (1) year after it removes the System. Color matching of the patched roof area will be
done with material you provide to us. You agree to reasonably cooperate with SolarCity in removing the Solar
Panel System including providing necessary space, access and storage and we will reasonably cooperate with
you to schedule removal in a time and manner that minimizes inconvenience to you.

4. Force Majeure.
If SolarCity is unable to perform all or some of its obligations under this Limited Warranty because of a Force
Majeure Event, SolarCity will be excused from whatever performance is affected by the Force Majeure Event,
provided that:

1. SolarCity, as soon as is reasonably practical, gives you notice describing the Force Majeure Event;
2. SolarCity’s suspension of its obligations is of no greater scope and of no longer duration than is
required by the Force Majeure Event; and
3. No SolarCity obligation that arose before the Force Majeure Event that could and should have been
fully performed before such Force Majeure Event is excused as a result of such Force Majeure Event.

“Force Majeure Event” means any event, condition or circumstance beyond the control of and not caused by
SolarCity’s fault or negligence. It shall include, without limitation, failure or interruption of the production, delivery or acceptance of electricity due to: an act of god; war (declared or undeclared); sabotage; riot; insurrection;
civil unrest or disturbance; military or guerilla action; terrorism; economic sanction or embargo; civil strike, work
stoppage, slow-down, or lock-out; explosion; fire; earthquake; abnormal weather condition or actions of the
elements; hurricane; flood; lightning; wind; drought; the binding order of any governmental authority (provided that
such order has been resisted in good faith by all reasonable legal means); the failure to act on the part of any
governmental authority (provided that such action has been timely requested and diligently pursued); unavailability
of electricity from the utility grid, equipment, supplies or products (but not to the extent that any such availability of
any of the foregoing results from SolarCity’s failure to have exercised reasonable diligence); and failure of
equipment not utilized by SolarCity or under its control.
5. Limitations on Liability.
(a) No Consequential Damages. YOU MAY ONLY RECOVER DIRECT DAMAGES AND THOSE
AMOUNTS DUE PURSUANT TO SECTION 1(b) UNDER THIS LIMITED WARRANTY, AND IN NO
EVENT SHALL SOLARCITY OR ITS AGENTS OR SUBCONTRACTORS BE LIABLE TO YOU OR
YOUR ASSIGNS FOR SPECIAL, INDIRECT, PUNITIVE, EXEMPLARY, INCIDENTAL OR
CONSEQUENTIAL DAMAGES OF ANY NATURE. SOME STATES DO NOT ALLOW THE
EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE
ABOVE LIMITATION MAY NOT APPLY TO YOU.
(b) Limitation of Duration of Implied Warranties. ANY IMPLIED WARRANTIES, INCLUDING THE
IMPLIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE AND MERCHANTABILITY
ARISING UNDER STATE LAW, SHALL IN NO EVENT EXTEND PAST THE EXPIRATION OF ANY
WARRANTY PERIOD IN THIS LIMITED WARRANTY. SOME STATES DO NOT ALLOW
LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION
MAY NOT APPLY TO YOU.
(c) Limit of Liability. Notwithstanding any other provision of this Limited Warranty to the contrary, SolarCity’s
total liability arising out of relating to this Limited Warranty shall in no event:
i. For System Failure or Replacement: exceed the cost of the System Lease; and
ii. For damages to your Home: exceed two million dollars ($2,000,000) provided that the damages are
caused solely by us or the System and the damages are covered by our insurance.

6. Notices.
All notices under this Limited Warranty shall be in writing and shall be by personal delivery, facsimile transmission,
electronic mail, overnight courier, or regular, certified, or registered mail, return receipt requested, and deemed
received upon personal delivery, acknowledgment of receipt of electronic transmission, the promised delivery date
after deposit with overnight courier, or five (5) days after deposit in the mail. Notices shall be sent to the party
identified in this Agreement at the address set forth below or such other address as either party may specify in
writing. Each party shall deem a document faxed to it as an original document.

To SolarCity:

SolarCity Corporation
393 Vintage Park Drive, Suite 140

Foster City, CA 94404
Attention: Warranty Claims

Telephone: 650-638-1028

Facsimile: 650-638-1029

Email: leaseadministrator@solarcity.com

To You:

At the billing address in the Lease or any
subsequent billing address you give us.

7. Applicable Law/Arbitration.
The laws of the state where your Home is located shall govern this Limited Warranty without giving effect to
conflict of laws principles. We agree that any dispute, claims or disagreements between us shall be resolved by
arbitration. Judgment on an arbitrator’s award may be entered in any court having jurisdiction. All statutes of
limitations that are applicable to any dispute shall apply to any arbitration between us. Prior to any arbitration the
parties agree to consider mediating their claims.

Each arbitration, including the selecting of the arbitrator, will be administered by JAMS/Endispute, LLC under its
Commercial Arbitration Rules and, in addition, the Due Process Protocol for Mediation and Arbitration of
Consumer Disputes most recently in effect. Arbitration will be governed by the Federal Arbitration Act (Title 9 of
the U.S. Code). Either party can initiate an arbitration proceeding by filing the necessary forms with JAMS. To learn
more about arbitration, you can call any JAMS office or review the materials at www.jamsadr.com. If a JAMS
office does not exist in the county where you are located, another arbitrator will be agreed upon or if no other
arbitrator can be agreed upon, then we will use the AAA office closest to your Home.

You and we shall each bear our own costs and expenses, including attorneys’ fees, with respect to any arbitration.
However, if under the circumstances relating to the dispute it is determined by the arbitrator that it would be
unconscionable or otherwise inappropriate for you to pay the filing and all other fees associated with the arbitration,
we will pay those fees for you.

Only disputes involving you and us may be addressed in the arbitration. You agree that you cannot not pursue any
dispute as a “class action” unless the amount in dispute between us is less than three thousand dollars ($3,000), not
including any claim you might bring for attorneys’ fees or punitive or exemplary damages where provided by law.
This means that the arbitration may not address disputes involving other persons which may be similar to the
disputes between you and us.

The arbitrator shall have the authority to award any legal or equitable remedy or relief that a court could order or
grant. The arbitrator, however, is not authorized to change or alter the terms of this Agreement or to make any award
that would extend to any transaction other than your own.

Because we have agreed to arbitrate all disputes, neither of use will HAVE THE RIGHT TO LITIGATE THAT
DISPUTE IN COURT, OR TO HAVE A JURY TRIAL ON THAT DISPUTE, OR ENGAGE IN DISCOVERY
EXCEPT AS PROVIDED FOR IN THE JAMS RULES. FURTHER, YOU WILL NOT HAVE THE RIGHT TO
PARTICIPATE AS A REPRESENTATIVE OR MEMBER OF ANY CLASS PERTAINING TO ANY DISPUTE
UNLESS THE AMOUNT IN DISPUTE IS LESS THAN THREE THOUSAND DOLLARS ($3,000), NOT
INCLUDING ANY CLAIM YOU MIGHT BRING FOR ATTORNEYS FEES OR PUNITIVE OR EXEMPLARY
DAMAGES WHERE PROVIDED BY LAW. THE ARBITRATOR’S DECISION WILL BE FINAL AND
BINDING, EXCEPT TO THE EXTENT IT IS SUBJECT TO REVIEW IN ACCORDANCE WITH
APPLICABLE LAWS GOVERNING ARBITRATION AWARDS. OTHER RIGHTS THAT YOU OR WE
WOULD HAVE IN COURT MAY ALSO NOT BE AVAILABLE IN ARBITRATION.

If any portion of this section of this Limited Warranty is determined to be unenforceable, the remaining provisions
shall be enforced in accordance with their terms or shall be interpreted or re-written so as to make them enforceable.

8. Assignment and Transfer of this Limited Warranty.
SolarCity may assign its rights or obligations under this Limited Warranty to a third party without your consent,
provided that any assignment of SolarCity’s obligations under this Limited Warranty shall be to a party qualified to
perform such obligation. This Limited Warranty protects only the person who leases the System. Your rights and
obligations under this Limited Warranty will be automatically transferred to any person who purchases the System
from you or to whom you properly transfer the Lease.

9. Entire Agreement; Changes.

This Limited Warranty contains the parties entire agreement regarding the limited warranty of the System.
SolarCity’s obligations under this Limited Warranty are separate and distinct from its, or its assigns, obligations
under the Lease and any breach of this Limited Warranty shall not affect your obligations under the Lease. The
Lease may be assigned to a third party without assignment of SolarCity's obligations under this Limited Warranty.
SolarCity's obligations under this Limited Warranty may only be assigned in writing to a party that expressly
accepts responsibility in writing for SolarCity's obligations under this Limited Warranty. There are no other
agreements regarding the limited warranty of the System, either written or spoken. Any change to this Limited
Warranty must be in writing and signed by both parties. If any portion of this Limited Warranty is determined to be
unenforceable, the remaining provisions shall be enforced in accordance with their terms or shall be interpreted or
re-written so as to make them enforceable. Provisions that should reasonably be considered to survive termination
of this Limited Warranty shall survive.

SolarCity Corporation

By (signature):

Printed Name: Charles Ferer

Title:CFO

Lessee


By (signature):

Printed Name: XXXXXXXXXXXXXXXX

Exhibit A

1. Lease Date: _____________

2. Original Lessee Name: XXXXXXXXXXXXXXXX

3. Original Co-Lessee Name (if applicable):

4. Description of the System:

5.6 KW DC (STC) PHOTOVOLTAIC SYSTEM

Photovoltaic Modules

Inverter(s)

Mounting system

Monitoring system

Electric meter number:

The estimated average price per kWh over the lease term is: $0.135

Exhibit B

Table of Guaranteed Annual kWh

YEAR GUARANTEED CUMULATIVE KWH
ANNUAL KWH
1 9,694 9,694
2 9,597 19,292
3 9,501 28,793
4 9,406 38,200
5 9,312 47,512
6 9,219 56,731
7 9,127 65,859
8 9,036 74,894
9 8,945 83,840
10 8,856 92,696
11 8,767 101,463
12 8,680 110,143
13 8,593 118,736
14 8,507 127,243
15 8,422 135,665

[Jburgess]

The actual lease: part 1

SolarCity Corporation

393 Vintage Park Drive

Foster City, CA 94404

CA CSLB 888104

Homeowner Name and Address Co-Owner Name (If any)

XXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXX


Installation location:

XXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXX
____________________

1. Solar Panel System Lease; Introduction.
This SolarLease (this “Lease”) is the agreement between you and SolarCity Corporation (together with its successors and
assigns, “SolarCity” or “we”), covering the lease to you of the solar panel system (the “System”) described below. SolarCity
agrees to lease to you, and you agree to lease from SolarCity, the System on the terms and conditions described in this Lease.
The System will be installed by SolarCity at the address you listed above. This Lease will refer to this address as the
“Property” or your “Home.” This Lease is nine (9) pages long. This is a legally binding agreement, so please read
everything carefully. This Lease has disclosures required by the Federal Consumer Leasing Act and, where applicable, state
law, as part of this Lease. If you have any questions regarding this Lease, please ask your SolarCity sales representative.
This Lease is effective beginning on the day you sign it. SolarCity has provided you with a Performance Guaranty and
Limited Warranty (the “Limited Warranty”). SolarCity has also provided you with a System guide entitled “Solar Operation
and Maintenance Guide” (the “Guide”), which contains important operation, maintenance, service and warranty information.
Please read the Limited Warranty and the Guide carefully.

2. Lease Term.
SolarCity agrees to lease you the System for 15 years 180 full calendar months), plus, if the Interconnection Date is not on
the first day of a calendar month, the number of days left in that partial calendar month, including the Installation Date. We
refer to this period of time as the “Lease Term.” The Lease Term begins on the Interconnection Date. The Interconnection
Date is the date that the System is fully up and running and generating energy.

3. Description of the Solar Panel System You Are Leasing.

5.6 KW DC (STC) PHOTOVOLTAIC SYSTEM

Photovoltaic Modules
Inverter(s)
Mounting system
Monitoring system
Electric meter number:
The estimated average price per kWh over the lease term is: $0.135

4. Lease Payments; Amounts.

A. Amount Due at Lease
Signing or Delivery:

First Monthly Payment
$ 1,000.00

Tax on First Monthly Payment
$0.00

Delivery/Installation Fee
$ __0__

Total $ 1,000.00

B. Monthly Payments (taxes not included):

Your first Monthly Payment of $1,000.00 is due when
you sign this Lease, covering the first full calendar
month of the Lease Term, followed by 11 Monthly
Payments of $75.01 each, followed by 12 Monthly
Payments of $77.64 each, followed by 12 Monthly
Payments of $80.35 each, followed by 12 Monthly
Payments of $83.17 each, followed by 12 Monthly
Payments of $86.08 each, followed by 12 Monthly
Payments of $89.09 each, followed by 12 Monthly
Payments of $92.21 each, followed by 12 Monthly
Payments of $95.43 each, followed by 12 Monthly
Payments of $98.78 each, followed by 12 Monthly
Payments of $102.23 each, followed by 12 Monthly
Payments of $105.81 each, followed by 12 Monthly
Payments of $109.51 each, followed by 12 Monthly
Payments of $113.35 each, followed by 12 Monthly
Payments of $117.31 each, followed by 12 Monthly
Payments of $121.42 each, each due on the first day of a
calendar month, commencing with the calendar month
following the first full calendar month. The total of your
Monthly Payments is $18,293.64.

Each Monthly Payment is due on the first day of a
calendar month.

The total amount of Monthly Payments for the Lease
Term will be $18,293.64.

C. Other
Charges:
(not part
of the
Monthly
Payments)

None.

D. Total of
Payments:

(The amount you will
have paid by the end of
this Lease)

$ 18,293.64 (total of
Monthly Payments, and
any other amounts
specified in this Section
4; does not include any
additional installation
cost or taxes)

E. Purchase Option At End of Lease Term:

You do not have an option to purchase the System at the end of the Lease Term.

F. Other Important Terms: See Section 2 above for additional information on the Lease Term and also see below for additional
information on termination, purchase options, renewal options, maintenance responsibilities, warranties, late and default charges, required
insurance and prohibition on assignment without SolarCity’s consent.

5. Lease Obligations.
(a) You agree to:
(i) make the payments required by this Lease;
(ii) notify us within 24 hours if you discover that the System is not working correctly;
(iii) notify us immediately upon the discovery of an emergency condition relating to the System, damage to the
System or theft of the System;

(iv) only have the System repaired pursuant to the Limited Warranty and reasonably cooperate with the person
performing the repairs when repairs are being made;
(v) keep trees, bushes and hedges trimmed so that the System receives as much sunlight as it did when SolarCity
installed it;
(vi) not modify your Home in a way that shades the System;
(vii) permit SolarCity, after we give you reasonable notice, to inspect the System for proper operation as we
reasonably determine necessary;
(viii) not move the System, or permit anyone else to move the System, except as permitted by the Limited Warranty;
(ix) not do anything, permit or allow to exist any condition or circumstance which would cause the system not to
operate as intended at the Property;
(x) not use the System to heat a swimming pool;
(xi) use the System primarily for personal, family or household purposes;
(xii) not remove any markings or identification tags on the System;
(xiii) keep the panels clean, pursuant to the Limited Warranty and the Guide;
(xiv) reasonably cooperate with SolarCity so that it may claim any tax credits, rebates or benefits from the System;
this may include filing applications for rebates from the federal, state or local, government or a local utility and
giving these tax credits, rebates or benefits to SolarCity. You agree that you will not claim, or take any action,
or fail to take any action, including claiming any tax credits respecting the System on any tax return, that may
jeopardize SolarCity’s ability to receive, such tax credits, rebates or other benefits; and
(xv) be responsible for any non-code conditions at your Home that affect the installation and to allow SolarCity
adequate time and access to complete the installation.

(b) Return Fees; Late Charges; Checks. In addition to the other amounts you agree to pay in this Lease, you agree to pay
the following:
(i) Returned Check Fee: $25 for any check or withdrawal right that is returned or refused by your bank.
(ii) Late payments accrue interest at twelve percent (12%) annually or the maximum allowable by applicable law.

(c) Insurance. The System needs to be insured at all times.
You will need All Risk coverage against damage to or loss of the System in the amount of $33,750.

You agree to obtain and pay for the required insurance with a nationally recognized insurer of your choice. The required
insurance may be provided through existing policies that you own or control (like your homeowner’s policy). You also
agree to name SolarCity and anyone else designated by SolarCity as a loss payee (someone who can recover directly
from your insurance company in the event of a loss related to the System). The insurance policy must provide for at
least thirty (30) days’ advance notice to us of any cancellation or other material change in coverage. At our request, you
will promptly provide us with written proof of insurance. You will promptly contact us in writing if any of the insurance
provider information changes. You authorize us to endorse your name on any check or other instrument we receive for
insurance proceeds. This will enable us to deposit a check we receive from your insurance company.

NO INSURANCE COVERAGE IS INCLUDED IN THIS LEASE OR PROVIDED BY SOLARCITY.

(d) Estimated Taxes: You agree to pay any applicable sales or use taxes on the Monthly Payments due under this Lease.
You also agree to pay as invoiced any applicable personal property taxes on the System that your local jurisdiction may
levy. The total estimated amount you will pay for taxes over the Lease Term is $0.00.
(e) No Alterations. You agree that you will not make any modifications, attachments, improvements, revisions or additions
to the System or take any other action that could void the Limited Warranty on the System without SolarCity’s prior
written consent. If you make any modifications, attachments, improvements, revisions or additions, they will become
part of the System and shall be SolarCity’s property.

(f) Home Renovations. If you want to make any repairs or improvements to the Property that could interfere with the
System (such as repairing the roof where the System is located), you may only remove and replace the System pursuant
to the Limited Warranty.
(g) Access to the Solar Panel System; Easement.
(i) You grant to SolarCity and its agents, employees and contractors the right to reasonably access all of the
Property for the purposes of (a) installing, constructing, operating, owning, repairing, accessing, removing and
replacing the System or making any additions to the System or installing complementary technologies on or
about the location of the System; (b) enforcing SolarCity’s rights as to this Lease and the System; (c) installing,
using and maintaining electric lines and inverters and meters, necessary to interconnect the System to your
electric system at the Property and/or to the utility’s electric distribution system; or (d) as reasonably necessary
in connection with the construction, installation, operation, maintenance, removal or repair of the System. This
access right shall continue for up to ninety (90) days after this Lease expires to provide SolarCity with time to
remove the System at the end of the Lease. SolarCity shall provide you with reasonable notice of its need to
access the Property whenever commercially reasonable.
(ii) During the time that SolarCity has access rights you shall ensure that its access rights are preserved and shall
not interfere with or permit any third party to interfere with such rights or access. If SolarCity requests, you
will sign an easement that sets out in writing (i) SolarCity’s right to access the Property; and/or (ii) that the
System is not a fixture. SolarCity may record this easement in the appropriate manner in the public records.
You also grant SolarCity the right to file any UCC-1 financing statement or fixture filing that confirms its
interest in the System.

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Part 2

(h) Indemnity. To the fullest extent permitted by law, you shall indemnify, defend, protect, save and hold harmless
SolarCity, its employees, officers, directors, agents, successors and assigns from any and all third party claims, actions,
costs, expenses (including reasonable attorneys’ fees and expenses), damages, liabilities, penalties, losses, obligations,
injuries, demands and liens of any kind or nature arising out of, connected with, relating to or resulting from your
negligence or willful misconduct; provided, that nothing herein shall require you to indemnify SolarCity for its own
negligence or willful misconduct. The provisions of this paragraph shall survive termination or expiration of this Lease.
(i) Monthly Payments. The Monthly Payments section (Section 4(B)) describes your monthly payment obligations under
this Lease. YOU AGREE THAT THIS IS A NET LEASE AND THE OBLIGATION TO PAY ALL MONTHLY
PAYMENTS AND ALL OTHER AMOUNTS DUE UNDER THIS LEASE SHALL BE ABSOLUTE AND
UNCONDITIONAL UNDER ALL CIRCUMSTANCES AND SHALL NOT BE SUBJECT TO ANY ABATEMENT,
DEFENSE, COUNTERCLAIM, SETOFF, RECOUPMENT OR REDUCTION FOR ANY REASON WHATSOEVER,
IT BEING THE EXPRESS INTENT OF THE PARTIES THAT ALL AMOUNTS PAYABLE BY YOU
HEREUNDER SHALL BE AND CONTINUE TO BE PAYABLE IN ALL EVENTS INCLUDING BY YOUR
HEIRS AND ESTATE AND, EXCEPT AS SET FORTH BELOW, YOU HEREBY WAIVE ALL RIGHTS YOU
MAY HAVE TO REJECT OR CANCEL THIS LEASE, TO REVOKE ACCEPTANCE OF THE SYSTEM, OR TO
GRANT A SECURITY INTEREST IN THE SYSTEM.
(j) Lease Obligations Separate from Limited Warranty. You acknowledge that SolarCity’s obligations under this Lease are
separate and independent from its obligations under the Limited Warranty, that no breach of the provisions of the
Limited Warranty will be a default by SolarCity under this Lease, and that a breach by SolarCity of its obligations under
the Limited Warranty will not give rise to any rights or recourse against SolarCity or any right to offset amounts due
under this Lease. You also acknowledge that this Lease may be assigned separately from the Limited Warranty.

6. Conditions Prior to Installation of the System.
SolarCity’s obligation to install and lease the System are conditioned on the following items having been completed to its
reasonable satisfaction:

(a) completion of a physical inspection of the Property, including if applicable geotechnical work, and real estate due
diligence to confirm the suitability of the Property for the construction, installation and operation of the System;
(b) approval of this Lease by its financing partner(s);
(c) confirmation that it will obtain all applicable benefits referred to in Section 9; and
(d) receipt of all necessary zoning, land use and building permits.

(e) SolarCity may terminate this Lease without liability if, in its reasonable judgment, any of the above listed conditions
will not be satisfied for reasons beyond its reasonable control.

7. Warranty.
The Limited Warranty is separate from this Lease. No rights provided to you by the Limited Warranty may be asserted under
this Lease. No warranty is made in this Lease. Therefore, any warranty claim must be made independently of this Lease and
will not affect your obligations under this Lease.

YOU UNDERSTAND THAT THE SYSTEM IS WARRANTED UNDER THE LIMITED WARRANTY, AND THAT
THERE ARE NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE
MERCHANTABILITY, FITNESS FOR ANY PURPOSE, CONDITION, DESIGN, CAPACITY, SUITABILITY OR
PERFORMANCE OF THE SYSTEM OR ITS INSTALLATION, AND YOU LEASE THE SYSTEM “AS IS.”

8. Transfer.
SolarCity may assign, sell or transfer the System and this Lease. Assignment, sale or transfer generally means that SolarCity
would transfer certain of its rights and certain of its obligations under this Lease to another party. Upon such transfer,
SolarCity Corporation shall retain, and the other party will have no obligation for, SolarCity Corporation’s installation
obligations under Section 1 and its obligations under the Limited Warranty or the Guide.

9. Ownership of the System; Tax Credits and Rebates.
You understand and agree that this is a lease and not a sale agreement. SolarCity owns the System for all purposes, including
any data generated from the system. You shall at all times keep the System free and clear of all liens, claims, levies and legal
processes not created by SolarCity, and shall at your expense protect and defend SolarCity against the same.

YOU UNDERSTAND AND AGREE THAT ANY AND ALL TAX CREDITS, INCENTIVES, RENEWABLE ENERGY
CREDITS, GREEN TAGS, CARBON OFFSET CREDITS, UTILITY REBATES OR ANY OTHER NON-POWER
ATTRIBUTES OF THE SYSTEM ARE THE PROPERTY OF AND FOR THE BENEFIT OF SOLARCITY, USABLE AT
ITS SOLE DISCRETION. SOLARCITY SHALL HAVE THE EXCLUSIVE RIGHT TO ENJOY AND USE ALL SUCH
BENEFITS, WHETHER SUCH BENEFITS EXIST NOW OR IN THE FUTURE.

10. Options to Purchase the Solar Panel System Prior to the End of the Lease Term.
You may not purchase the System prior to the end of the Lease Term.

11. Option to Renew Your Lease.
You have the option to renew your Lease Term for up to fifteen (15) years in three (3) five (5) year renewal periods. We will
send you renewal forms three (3) months prior to the expiration of the Lease Term, which forms shall set forth the new
Monthly Payments due under the renewal Lease, based on our assessment of the then current fair market value of the System.
If you want to renew and you are in compliance with this Lease, complete the renewal forms and return them to us at least
one (1) month prior to the end of the Lease. In the event that you do not agree to the new Monthly Payments or do not
submit a renewal form, the Lease shall expire by its terms on the termination date.

12. Selling Your Home.
(a) If you sell your home you can:
(i) Transfer this Lease and the Monthly Payments. If the person buying your Home meets SolarCity’s credit
requirements, then the person buying your Home can sign a transfer agreement assuming all of your rights
and obligations under this Lease.
(ii) Prepay this Lease and Transfer only the Use of the System. If the person buying your home does not meet
SolarCity’s credit requirements, but still wants the System, then you can (i) prepay the payments remaining on
the Lease (See section 16(f)(i) and (ii)), (ii) add the cost of the Lease to the price of your home; and (iii) have
the person buying your Home sign a transfer agreement to assume your rights and non-Monthly Payment
obligations under this Lease. The System stays at your Home, the new owner of your Home does not make any
Monthly Payments and has only to comply with the non-Monthly Payment portions of this Lease.
(iii) Prepay this Lease and Remove the System after Six Years. If your System has been installed for at least six (6)
years (72 months) and the person buying your home does not want the System, you may prepay the payments
remaining on the Lease (See section 16(f)(i) and (ii)). Your right to have the System removed at no cost to you
in such case is covered by the Limited Warranty.
(iv) Move the System to your new Home. If you are moving to a new home in the same utility district, the System
can be moved to your new home only pursuant to the Limited Warranty. You will need to pay all costs
associated with relocating the System, execute and deliver to SolarCity an easement for the replacement
premises and provide any third party consents or releases required by SolarCity in connection with the
substitute premises.

(b) You agree to give SolarCity at least one (1) month’s but not more than three (3) months’ prior written notice if you want
someone to assume your Lease obligations. In connection with this assumption, you, your approved buyer and
SolarCity shall execute a written transfer of this Lease. SolarCity may charge you a transfer review fee of two hundred
fifty dollars ($250). Unless we have released you from your obligations in writing, you are still responsible for
performing under this Lease. If your buyer defaults on this Lease and we have not yet signed the transfer agreement,
you will be responsible for its default. We will release you from your obligations under this Lease in writing once we
have a signed transfer agreement with the person buying your Home (provided such person has been approved as a
transferee by SolarCity in writing).
(c) If you sell your home and can't comply with any of the options in subsection (a) above, you will be in default under this
Lease. Section 12(a) includes a home sale by your estate or heirs.
(d) EXCEPT AS SET FORTH IN THIS SECTION, YOU WILL NOT SUBLEASE, ASSIGN, SELL, PLEDGE OR IN
ANY OTHER WAY TRANSFER YOUR INTEREST IN THE SYSTEM OR THIS LEASE WITHOUT OUR PRIOR
WRITTEN CONSENT, WHICH SHALL NOT BE UNREASONABLY WITHHELD.

13. Loss or Damage.
(a) You agree to bear all of the risk of loss, damage, theft, destruction or similar occurrence of any or all of the System
during the time the System is (i) installed on the Property, (ii) while the System is being installed on the Property, or
(iii) after a default under this Lease, while the System is being removed from the Property. Except as expressly
provided in this Lease, no loss, damage, theft or destruction will excuse you from your obligations under this Lease,
including Monthly Payments. The insurance you provide on the System will protect you from the financial burden of
loss or damage to the System; this is why we require the System to be insured.
(b) If there is loss, damage, theft, destruction or a similar occurrence affecting the System, and you are not in default of this
Lease, you shall within thirty (30) days after such occurrence (a) continue to timely make all Monthly Payments and
pay all other amounts due under the Lease and, within a commercially reasonable time at your sole cost and expense,
have the System repaired pursuant to the Limited Warranty; or (b) if the System cannot be repaired (with insurance
proceeds plus any additional monies required) pay SolarCity all amounts described in Section 16(f).
(c) SolarCity shall have the right, but not the obligation, to repair or remedy any defective or dangerous condition with
respect to the System and bill you for the reasonable cost and expense of such repairs. Some or all of these obligations
may be covered by the Limited Warranty.

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Part 3

14. Limitation of Liability.
(a) No Consequential Damages. SOLARCITY’S LIABILITY TO LESSEE UNDER THIS LEASE SHALL BE
LIMITED TO DIRECT, ACTUAL DAMAGES ONLY. LESSEE AGREES THAT IN NO EVENT SHALL EITHER
PARTY BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY,
SPECIAL OR INDIRECT DAMAGES.
(b) Actual Damages. Except for claims under section 5(h), neither party’s liability to the other will exceed an amount
equal to the maximum amount that could be payable by you under Section 16(f). Damages to your home or property
during the installation of the System or resulting from the System are covered in the Performance Guaranty and
Limited Warranty Agreement provided by SolarCity.

15. Default.
You will be in default under this Lease if any one of the following occurs:

(a) you fail to make any payment when it is due and such failure continues for a period of ten (10) days;
(b) you fail to perform any material obligation that you have undertaken in this Lease (which includes doing something you
have agreed not to do, like alter the System) and such failure continues for a period of fifteen (15) days after written
notice;
(c) you or your guarantor have provided any false or misleading financial or other information to obtain this Lease;
(d) you assign, transfer, encumber, sublet or sell this Lease or any part of the System without SolarCity’s prior written
consent;
(e) you fail to provide the required insurance on the System or fail to provide proof of such coverage after we request it; or
(f) you or any guarantor makes an assignment for the benefit of creditors, admits in writing its insolvency, files or there is
filed against you or it a voluntary petition in bankruptcy, is adjudicated bankrupt or insolvent or undertakes or
experiences any substantially similar activity.

16. Remedies in Case of Default.
If this Lease is in default, we may take any one or more of the following actions. If the law requires us to do so, we will give
you notice and wait any period of time required before taking any of these actions. We may:

(a) terminate this Lease and your rights to possess and use the System;
(b) take any reasonable action to correct your default or to prevent our loss (including, for example, purchasing insurance
that you agreed to provide); any amount we pay will be added to the amount you owe us and will be immediately due;
(c) require you, at your expense, to return the System or make it available to us in a reasonable manner;
(d) proceed, by appropriate court action, to enforce performance of this Lease and to recover damages for your breach;
(e) take back the System by legal process or self-help, but we may not breach the peace or violate the law;
(f) recover from you (i) all accrued but unpaid monthly payments, taxes, late charges, penalties, interest and all or any other
sums then accrued or due and owing, plus (ii) the unpaid balance of the aggregate rent, each payment discounted to
present value at 5% per annum, plus (iii) reasonable compensation, on a net after tax basis assuming a tax rate of 35%,
for the loss or recapture of (A) the investment tax credit equal to thirty percent (30%) of the System cost, including
installation; and (B) accelerated depreciation over five (5) years equal to eighty five percent (85%) of the System cost,
including installation, and for the loss of any anticipated benefits pursuant to Section 9 of the Lease (SolarCity shall
furnish Lessee with a detailed calculation of such compensation if a claim is made therefore); or
(g) use any other remedy available to us in this Lease or by law.

You agree to repay us for any reasonable amounts we pay to correct or cover your default. You also agree to reimburse us
for any costs and expenses we incur relating to the System’s return resulting from early termination. By choosing any one
or more of these remedies, SolarCity does not give up its right to use another remedy. By deciding not to use any
remedy should this Lease be in default, SolarCity does not give up our right to use that remedy in case of a subsequent
default.
17. Returning the System at the End or upon Termination of This Lease; Early Termination.

(a) Returning the Solar Panel System at the End or Termination of This Lease. If you don’t renew this Lease, then there are
three (3) possibilities with respect to returning or keeping the System at the end or termination of this Lease:
(i) If at the end or termination of this Lease Term you have not defaulted on this Lease, then within ninety (90)
days:
(A) SolarCity may at its choosing, remove the System from your home at no cost to you; or
(B) if SolarCity does not tell you that it wants to remove the System and you want to have the System
removed from your Home at no cost to you, you must make a claim under the Limited Warranty which
governs your rights in this respect.

(ii) If at the end or termination of this Lease you are in default, and SolarCity chooses to remove the System from
your Home then you agree to pay SolarCity the reasonable expense of removing the System from your Home.
(iii) If at the end or termination of this Lease SolarCity chooses not to remove the System and you do not require
removal within 90 days pursuant to the Limited Warranty, then you will be considered to be the new owner of
the System and it will automatically be conveyed to you AS IS, WHERE IS.

(b) Early Termination after 6 years. If your System has been installed for less than six (6) years (72 months), you are not
entitled to terminate the Lease. If your System has been installed for at least six (6) years (72 months) and you want to
terminate the Lease, SolarCity will remove the System from your Home upon your payment of (x) an amount equal to
the cost of de-installation and transportation, (y) the cost to repair any damage to the System for which you are
responsible under this Lease, and (z) the amounts remaining on the Lease (See section 16(f)(i) and (ii)).
(c) You will also have the right to terminate this Lease, without penalty or fee, if we determine after a site audit that we
have misestimated the kilowatt size of the System your Home will require by more than ten percent (10%). Such
termination right will expire at the earlier of (i) the date we commence installation of the System and (ii) one (1) month
after we inform you in writing of the revised size estimate.

18. Applicable Law; Arbitration.
The laws of the state where your Home is located shall govern this Lease without giving effect to conflict of laws principles.
We agree that any dispute, claim or disagreement between us shall be resolved by arbitration. Judgment on an arbitrator’s
award may be entered in any court having jurisdiction. All statutes of limitations that are applicable to any dispute shall
apply to any arbitration between us.

Each arbitration, including the selecting of the arbitrator, will be administered by JAMS/Endispute, LLC under its
Commercial Arbitration Rules and, in addition, the Due Process Protocol for Mediation and Arbitration of Consumer

Disputes most recently in effect. Arbitration will be governed by the Federal Arbitration Act (Title 9 of the U.S. Code).
Either party can initiate an arbitration proceeding by filing the necessary forms with JAMS. To learn more about arbitration,
you can call any JAMS office or review the materials at www.jamsadr.com. If a JAMS office does not exist in the county
where you are located, another arbitrator will be agreed upon or if no other arbitrator can be agreed upon, then we will use the
AAA office closest to your Home.

You and we shall each bear our own costs and expenses, including attorneys’ fees, with respect to any arbitration. However,
if under the circumstances relating to the dispute it is determined by the arbitrator that it would be unconscionable or
otherwise inappropriate for you to pay the JAMS filing and all other fees associated with the arbitration, we will pay those
fees for you.

Only disputes involving you and us may be addressed in the arbitration. You agree that you cannot not pursue any dispute as
a “class action” unless the amount in dispute between us is less than three thousand dollars ($3,000), not including any claim
you might bring for attorneys fees or punitive or exemplary damages. This means that the arbitration may not address
disputes involving other persons which may be similar to the disputes between you and us.

The arbitrator shall have the authority to award any legal or equitable remedy or relief that a court could order or grant. The
arbitrator, however, is not authorized to change or alter the terms of this Lease or to make any award that would extend to any
transaction other than your own. The prevailing party in any arbitration or court action will be entitled to recover as part of
the award its costs and reasonable attorneys’ fees and expenses.

Because we have agreed to arbitrate all disputes, neither of use will HAVE THE RIGHT TO LITIGATE THAT DISPUTE
IN COURT, OR TO HAVE A JURY TRIAL ON THAT DISPUTE, OR ENGAGE IN DISCOVERY EXCEPT AS
PROVIDED FOR IN THE JAMS RULES. FURTHER, YOU WILL NOT HAVE THE RIGHT TO PARTICIPATE AS A
REPRESENTATIVE OR MEMBER OF ANY CLASS PERTAINING TO ANY DISPUTE UNLESS THE AMOUNT IN
DISPUTE IS LESS THAN THREE THOUSAND DOLLARS ($3,000) NOT INCLUDING ANY CLAIM YOU MIGHT
BRING FOR ATTORNEYS’ FEES OR PUNITIVE OR EXEMPLARY DAMAGES. THE ARBITRATOR’S DECISION
WILL BE FINAL AND BINDING, EXCEPT TO THE EXTENT IT IS SUBJECT TO REVIEW IN ACCORDANCE WITH
APPLICABLE LAW GOVERNING ARBITRATION AWARDS. OTHER RIGHTS THAT YOU OR WE WOULD HAVE
IN COURT MAY ALSO NOT BE AVAILABLE IN ARBITRATION.

If any portion of this section of this Lease is determined to be unenforceable, the remaining provisions shall be enforced in
accordance with their terms or shall be interpreted or re-written so as to make them enforceable.

19. Waiver.
Any delay or failure of a party to enforce any of the provisions of this Lease, including but not limited to any remedies listed
in this Lease, or to require performance by the other party of any of the provisions of this Lease, shall not be construed to
(i) be a waiver of such provisions or a party’s right to enforce that provision; or (ii) affect the validity of this Lease.

20. Notices.
All notices under this Lease shall be in writing and shall be by personal delivery, facsimile transmission, electronic mail,
overnight courier, or certified, or registered mail, return receipt requested, and deemed received upon personal delivery,
acknowledgment of receipt of electronic transmission, the promised delivery date after deposit with overnight courier, or five
(5) days after deposit in the mail. Notices shall be sent to the person identified in this Lease at the addresses set forth in this
Lease or such other address as either party may specify in writing. Each party shall deem a document faxed to it as an
original document.

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Part 4

21. Entire Agreement; Changes.
This Lease contains the parties’ entire agreement regarding the lease of the System. There are no other agreements regarding
this Lease, either written or oral. Any change to this Lease must be in writing and signed by both parties. If any portion of
this Lease is determined to be unenforceable, the remaining provisions shall be enforced in accordance with their terms or
shall be interpreted or re-written so as to make them enforceable. Provisions that should reasonably be considered to survive
termination of this Lease shall survive, including, without limitation, Sections 5(c), 5(d), 5(e), 5(f), 5(g), 5(h), 14, 16 and 18.

22. Right to Cancel
You may cancel this Lease at any time prior to 5 p.m. of the 30th calendar day after the date you sign this Lease. If that day
is a holiday, you will have until the next day that is not a holiday to cancel this Lease. The notice of cancellation must be
given pursuant to Section 20 to SolarCity at its address in this Lease, but must be actually received by SolarCity.

I have read this Lease in its entirety and I acknowledge that I have received a complete copy of this Lease.

Owner’s Name: XXXXXXXXXXXXXXX Co-Owner’s Name (if any):

Signature: _________________________ Signature: __________________________________

Date: _____________________________ Date: ______________________________________

SOLARCITY CORPORATION

By (signature): _____________________

Printed Name: Charles Ferer

Title: CFO

Date: _____________________________

[BB.]

Thank you very much for the hard work. I am sure lots of people will be interested.

-Bill