Helping Riverside County homeowners navigate SCE rates and solar options since 2020
2026 context: SunPower filed Chapter 11 bankruptcy in August 2024. Its residential solar business was acquired by Complete Solaria, which now operates under the SunPower brand. Sunrun remains active as a publicly traded company. Any comparison of these two for existing lease holders needs to account for that difference.
If you have a solar lease with Sunrun or SunPower and you are on a NEM-2 grandfathered system in California, the buyout decision comes down to one question: does paying the buyout price now generate more value than continuing lease payments through the remaining term? The answer is different for each company because the pricing structures, company stability, and post-buyout obligations are not the same.
This comparison covers both honestly. There is a clear winner in most situations, and it is not always the one you would expect.
1. Company Status in 2026
Publicly traded on Nasdaq (RUN). Still operating as the largest residential solar company in the United States by installed base.
Active warranty and service operations. Buyout requests go directly to Sunrun.
Filed Chapter 11 August 2024. Residential business acquired by Complete Solaria, which rebranded under the SunPower name.
Buyout requests go to Complete Solaria. Original warranty obligations transferred, but confirm in writing.
The practical implication for lease holders: a Sunrun buyout is a transaction with a financially stable active company. A SunPower buyout is a transaction with a post-bankruptcy acquisition entity. Both can process buyouts, but the SunPower path requires more documentation and verification to confirm the exact terms of what you are buying and who is standing behind any residual warranty.
2. How Buyout Pricing Works
Both Sunrun and SunPower leases historically used the same method: the buyout price is the present value of remaining lease payments, discounted at a rate specified in your contract. The math works like this:
Buyout calculation example
Actual figure requires a formal buyout quote from your leasing company. This is illustrative only.
Sunrun leases tend to have higher escalators (2.9 percent is standard in most California contracts from 2015 to 2021). SunPower offered a wider range, including some 0 percent escalator options that were marketed as premium products. A 0 percent escalator lease is worth less to the leasing company over time, which means the buyout price on those contracts tends to be lower.
The escalator rate cuts both ways: a high escalator makes lease payments more expensive over time, which increases the financial case for buying out early. A low escalator keeps payments flat and reduces the urgency to buy out.
3. Head-to-Head Comparison
4. NEM-2 Implications of Each Buyout
For California homeowners, the NEM-2 question is often the most important part of the buyout decision. A NEM-2 grandfathered system earns roughly 30 to 43 cents per kWh in export credit from SCE, compared to 5 to 8 cents under NEM-3. That difference is worth $500 to $1,200 per year on a typical system that exports 20 to 30 percent of its production.
The good news for both Sunrun and SunPower lease holders: a clean ownership transfer without system modification does not trigger a new interconnection review. The grandfathered status stays with the interconnection agreement, which is tied to the address and the system configuration, not the owner name.
The risk is the same for both: any modification, expansion, or new equipment that requires updated interconnection paperwork from SCE can move the system from NEM-2 to NEM-3. This includes:
- Adding panels to increase system capacity
- Adding battery storage that changes the interconnection profile
- Replacing a failed inverter with a different brand or capacity if it requires new approval
- A transfer that the utility treats as a new installation for any reason
Recommendation:Before completing either buyout, call SCE at 1-800-655-4555 and ask specifically whether a change of system ownership under your account number triggers any interconnection review. Get the representative's name and note the date of the call. That record protects you if the grandfathered status is ever questioned.
5. Which Is Worth Buying Out
There is no universal answer, but here is a direct read on where each typically lands:
- +Your escalator is 2.9% and more than 8 years remain on the lease
- +The buyout price is below 8 times your current annual lease payment
- +Your NEM-2 grandfathering has 10 or more years remaining
- +Your SCE rate is above 30 cents and rising
- !Verify the buyout is with Complete Solaria, not a defunct SunPower entity
- !Get workmanship warranty status confirmed in writing before signing
- !If your escalator was 0 or 0.9%, the buyout price may be low enough to make it straightforward
- !If the original SunPower panels are Maxeon-series, the remaining panel quality may justify ownership
- -Fewer than 4 years remain on the lease (just wait)
- -The buyout price exceeds 12 times your current annual lease payment
- -You are planning to sell the home within 2 to 3 years
- -The system has a known performance issue that would become your problem post-buyout
6. Frequently Asked Questions
How does Sunrun calculate the buyout price on a California lease?
Sunrun calculates the buyout as the present value of remaining lease payments, discounted at a rate specified in your original contract. That discount rate is typically 6 to 9 percent. On a lease with a 2.9 percent annual escalator and 10 years remaining, a $150/month payment would produce a buyout figure roughly in the $12,000 to $18,000 range depending on the discount rate. Your exact figure requires a formal request to Sunrun. They are required to provide a buyout quote under California consumer protection rules for solar leases. Request it in writing so you have documentation.
Is SunPower still honoring lease buyout requests after the bankruptcy?
As of mid-2026, Complete Solaria (which acquired SunPower's residential business out of bankruptcy) is the entity responsible for existing SunPower lease contracts. Buyout requests should be directed to Complete Solaria operating under the SunPower brand. Whether the buyout terms match your original contract depends on how the acquisition handled existing contract obligations. Get any buyout quote in writing and compare it against the terms in your original lease agreement before proceeding.
Does buying out a Sunrun lease affect NEM-2 grandfathering?
A straight Sunrun lease buyout, where only ownership transfers without any system modification, generally does not affect NEM-2 grandfathered status. The interconnection agreement with SCE stays in place under the same address and the same system. The change is that Sunrun's name comes off the ownership record and yours goes on. That administrative transfer does not trigger a new interconnection review. However, if the buyout is paired with any system expansion or if the inverter needs replacement and requires updated paperwork, there is a risk of losing NEM-2 status. Confirm with SCE before completing the transaction.
Which is better for SCE customers right now, Sunrun or SunPower?
For new installations in 2026, neither is a straightforward recommendation. SunPower went through bankruptcy in 2024 and its residential business now operates as Complete Solaria under the SunPower brand. Sunrun is still financially active but faces the same industry headwinds. For SCE customers in Riverside County considering a new system, a local or regional installer with no bankruptcy exposure is lower risk for a 20 to 25 year commitment. For existing lease holders deciding whether to buy out, the choice is not between companies but between your specific lease terms and your current utility rate.
What happens to my SunPower lease if I do nothing?
Your SunPower lease continues under Complete Solaria, which now administers the contract. Lease payments are still due. The system should still be monitored and maintained under the original lease terms, though service quality may differ from pre-bankruptcy SunPower. At the end of the lease term, you typically have three options: purchase the system at fair market value, have the system removed, or renew the lease. None of those options changes your NEM-2 grandfathered status during the active lease period.
Get a free SCE savings estimate before deciding
Use the calculator below to model your specific bill savings under SCE's current rate structure. Compare that number against any buyout figure your leasing company provides to see whether ownership makes sense for your situation.
Calculate my SCE savingsUse our Temecula solar savings calculator to see exactly how much you could save given your current SCE bill.
See Your Real Savings Number
No site visit required. Adrian pulls satellite data and sends you a personalized breakdown within hours.