Climate First Bank and OneEthos do not permit Power Purchase Agreements (PPAs) or any form of Third-Party Ownership (TPO) within our loan programs.
Our financing products are designed exclusively to support customer-owned renewable energy systems. As a result, any project structured as a PPA, lease, or other third-party ownership model is ineligible for financing through our platform.
What Are PPAs and TPOs?
Power Purchase Agreement (PPA):
An arrangement where a third party owns the solar system and sells the electricity produced to the homeowner.Third-Party Ownership (TPO):
Any structure where the homeowner does not own the solar equipment outright (including leases and PPAs).
Program Requirements
To be eligible for financing:
The borrower must own the solar system
The loan must finance customer-owned equipment only
The installer contract must clearly reflect system ownership transferring to the customer
No third party may retain ownership, control, or rights to system production
Projects involving:
PPAs
Solar leases
TPO structures
Shared ownership models
are not permitted under any OneEthos or Climate First Bank loan program.
Why PPAs and TPOs Are Not Allowed
We do not allow PPAs or TPOs because:
Our loans are structured as consumer credit for owned assets
Third-party ownership creates conflicting legal, financial, and lien interests
TPO structures are incompatible with loan collateral, underwriting, and consumer protection requirements
Regulatory and compliance standards require clear borrower ownership of financed assets
Installer Responsibility
Installers are responsible for:
Ensuring the project is structured as customer-owned
Avoiding submission of PPAs, leases, or TPO contracts
Clearly explaining ownership and financing structure to the customer prior to submission
If a project is submitted and later identified as a PPA or TPO, it may result in:
Project rejection
Funding delays
Account review or hold for compliance
Questions or Clarifications
If you are unsure whether a project structure is compliant, please contact Installer Support before submitting the project for financing.