Lease Agreement Overview

Summary of Terms & Conditions

The Sunglow Lease Agreement is for 7 years. Under the Lease Agreement, which can be downloaded here, both you as the Lessee and Sunglow as the Lessor have various rights and obligations. The following is a short form summary of the Lease Agreement, but we encourage you to carefully read and understand the complete Lease Agreement before you agree to sign.

Under this Lease Agreement, Sunglow agrees to provide you with a solar water heater which is purchased and owned by us. We are always the owner of the system unless we accept an offer from you either at the end of the 7 year Lease Term, or after the 3 year Extension of Term, or if we leave it with you after 10 years, or unless there is some other Termination Event as set out in the Lease Agreement.

Entering into this Lease Agreement allows you to lock in attractive savings in energy costs over the life of the solar water heater.

Please note that Sunglow does not pursue manufacturers' warranty claims for you, nor do we fix damage or loss caused by improper operation, natural events, theft, deliberate damage, tampering or interference. Making good such damage or loss is your responsibility. We recommend that you check with your insurance company if you require the solar water heater to be covered under your policy.

However, if during the term of the Manufacturer's Warranty period, your system does not function due to issues with the solar panels, Sunglow will pay your reasonable water heating costs while the panels are being repaired or replaced. This Performance Warranty is limited to the collector panels, with all other equipment subject to the normal Manufacturer’s Warranty.

By agreeing to pay the Lease Establishment Fee and acknowledging that you have read and agree to all the Terms and Conditions of the Sunglow Lease Agreement and the Lease Schedule, Sunglow agrees to pay your supplier/installer an amount up to the Maximum Lease Amount as soon as your complete system is installed and commissioned and is ready for use. As soon as we receive notice from your supplier/installer that the system is installed and ready for use, Sunglow will automatically debit your registered credit card with the first scheduled quarterly instalment on the first Business Day after the Installation Date, then each 3 month period thereafter for the Term of the Lease Agreement. Naturally, Sunglow can only complete the Lease Schedule, which includes amongst other things all future payment dates and amounts, after we are informed by your supplier/installer of the Installation Date.

Sunglow gives you the opportunity to make us an offer to purchase the complete system at the end of the Lease Agreement. Sunglow is under no obligation to accept your offer and it is your responsibility to return the complete system to Sunglow in good working order if the offer is not accepted.

If Sunglow accepts your offer to purchase the complete solar hot water system at the end of the lease, you will continue to enjoy the benefit of free renewable energy from the sun for many years. If you don't want to make us an offer to buy the complete system at the end of the lease, you can either continue to make quarterly Lease Payments to Sunglow for up to 3 years at a rate currently less than 50% of your last quarterly Lease Payment, or you can just return the complete system to Sunglow in good working order. If you elect the 3 year extension, Sunglow has the option at the end of the 3 year extension of having a licensed plumber remove the complete system from your property, or we can leave the complete system as is, where is, and you will have nothing more to pay and the system is all yours after paying a $10 Lease Close Out Fee.

At any time during the term of the Sunglow Lease, you can cancel the Lease Agreement by paying the Termination Payment plus the Agreed Value and simply returning the complete system in good working order to Sunglow’s warehouse which is located in the Sydney metropolitan area. You will then have no further commitment to Sunglow as long as all previously scheduled payments were made. Depending on the circumstances, Sunglow may agree to allow you to keep the complete solar hot water service rather than returning it to our premises.

If you sell your house, whilst your Sunglow Lease is still current, we will consider that event to be an unforeseen Termination Event and if you want, we will agree to leave the complete system as is where is, provided the Termination Payment, the Agreed Value and all other previously scheduled payments have been made. Remember, you cannot represent to a new owner of your house that the solar hot water service is an inclusion if the Sunglow Lease has not been paid out in full at or before settlement. It is not possible for you to sell the house with the solar hot water service as an inclusion, whilst Sunglow is still the Lessor of the system. That is why you have to pay out the balance as if it is a Termination Event at or before settlement. But don't forget, once you have paid out the Termination Event balance, your solar hot water system becomes a very attractive asset in the sale of your house and you should list it as a value added inclusion in the sale of the property.

The Sunglow Termination Payment is calculated by discounting on an annual basis all future Lease Instalments at the Reserve Bank of Australia’s cash rate. For example, if there are 2 years of scheduled Lease Instalments still to be paid, then here is how they would be discounted assuming the cash rate was 6.25%.

The complete Sunglow Lease Agreement, which includes all Terms and Conditions and the Lease Schedule can be downloaded here.

Now, if you are still interested, just click on How to Lease From Sunglow to go back to the easy step by step guide to signing up with Sunglow.