Participate Transferability

Early Purchase Option: How to Own Your Solar System

What This Is

You entered into a prepaid lease agreement with Participate Energy when your solar system was installed. That agreement gives you a built-in option to purchase the system and take over full ownership. This is called the Early Purchase Option.

The purchase price is designed to be $0 or very low out of pocket, because the value you've already prepaid works in your favor.

From the Disclosure Statement (Agreement, Page 3):

Early Purchase Option: "At certain times, as specified in your Agreement, you may purchase the System, subject to terms and conditions. The price will be fair market value minus any offsetting obligations owed by System Owner at a number no less than $0.00. See Section 10."

When You Can Buy

The Early Purchase Option becomes available on the 6th anniversary of your lease term, and stays available on any anniversary after that.

To start the process, you'll need to give Participate Energy at least one (1) month, but not more than three (3) months' prior written notice.

There's no obligation to buy. This is a voluntary option you can exercise whenever you're ready, starting at year 6.

From Section 10, "Purchasing the System Prior to End of Term" (Agreement, Page 13):

"In addition to the End-of-Term Purchase Option, you have the option to purchase the System prior to the end of the PV Term ('Early Purchase Options') as detailed below. To exercise any Early Purchase Options, provided there is no ongoing Customer Default, and you must to give us at least one (1) month, but not more than three (3) months' prior written notice. You can exercise an Early Purchase Option at the following times:

(i) on the six (6) year anniversary of the beginning of the Term and every annual anniversary after the six (6) year anniversary; and

(ii) at any time after the six (6) year anniversary of the beginning of the Term, when you sell your Property; and

(iii) if we ever cease our operations and fail to provide for a substitute System provider."

How the Price is Calculated

At the time you inquire about purchasing, Participate Energy will assess the system's Fair Market Value (FMV). That's an estimate of what a typical buyer would pay for the system at that point.

Here's where it gets good for you. Your final cost isn't the full FMV. The FMV gets offset by the value of your remaining benefits under the lease, which include:

• Unused prepaid lease value (the portion of your prepaid amount that hasn't been consumed yet)
• Future monitoring and maintenance coverage
• Future insurance and risk coverage
• Future end-of-term removal costs

At year 6, roughly 24% of your prepaid value has been consumed. The remaining 76% plus all those future obligations owed to you get subtracted from the FMV. The result is typically a $0 or very low incremental payment.

The balance will never be less than $0. If you and Participate can't agree on FMV, they'll bring in a third-party appraiser at no cost to you.

From Section 10.2, "Prior to end-of-term purchase price" (Agreement, Page 13):

"The price you will pay for the System under this section will be the System's fair market value ('FMV') and offset by the value of any remaining obligations owed to you by System Owner under this Agreement and the Installation Order, resulting in a price no less than $0. If you and the System Owner cannot agree upon FMV, a third-party independent appraiser will be retained to compute the System's FMV."

What Happens After You Buy

Once the purchase is complete, the lease agreement terminates. You own the system outright. You retain 100% control and get all available grid services revenue. Any warranties and obligations from the original installer survive the purchase and transfer to you.

From Section 10.3, "Post-purchase obligations" (Agreement, Page 13):

"As permissible by law, all of our obligations to you, in accordance with this Agreement, shall terminate after you purchase the System. All of the obligations and benefits in the Installation Order with the Installer shall survive the purchases of the System and transfer to you."

If You Sell Your Home

If you sell your home, you have two options. You can transfer the agreement to the buyer, or you can purchase the system first and sell the home with fully owned solar. Either way, you need to give Participate at least 15 days' but not more than 3 months' written notice.

A transfer doesn't require a buyout. The new owner steps into your agreement and inherits all rights, including the Early Purchase Option. The agreement is explicitly designed to transfer freely.

From Section 11, "Selling Your Real Estate Property" (Agreement, Pages 13-14):

"(i) Transfer the Agreement. If the person buying your real estate property agrees to abide by the terms and conditions of this Agreement, then you and the person buying your real estate property can sign a transfer agreement, assuming all of your rights and obligations under this Agreement. If you transfer the Agreement, you must complete the transfer notification prior to the transfer of title of your property. You will be responsible for this Agreement until such time that the new real estate property owner and you complete the transfer agreement. You may initiate the transfer agreement at https://transfer.participate.energy or by emailing transfer@participate.energy."

"(ii) Purchase the System. If you purchase the System then subsequently sell your real estate property, the System will be included in the sale of the real estate property and any applicable benefits and obligations will transfer to the person buying your real estate property."

From the continuation on Page 14:

"This Agreement is free of any restrictions that would prevent the real estate property owner from freely transferring this Agreement and the Property so long as the transferee is able to and complies with all obligations of this Agreement."

Quick Reference

Contact Participate Energy

For questions about the Early Purchase Option or the transfer process:

• Email: channel@participate.energy (general) / transfer@participate.energy (transfers)
• Phone: 888-8-HAPPY-8
• Transfer portal: https://transfer.participate.energy

All quoted language sourced from the Participate Energy Customer Agreement