HDM Capital Prepaid Solar PPA in the Bay Area
HDM Capital is one of the two prepaid PPA providers we work with through Solar Tech. It is built for Bay Area homeowners who want the savings benefit of the old 30% federal solar tax credit without dealing with tax forms or waiting for a refund.
Home Pro Roofing and Solar in Sunnyvale, CA provides roofing and solar services for Bay Area homeowners. We handle roof replacements, solar installations, and battery backup systems. We specialize in solar removal and reinstallation during reroofing. Financing available. Nearly 20 years of experience. We coordinate everything so you never manage multiple contractors. Free estimates.
How the HDM Capital Prepaid PPA Works
The residential federal solar tax credit expired on December 31, 2025 for cash and loan purchases. But the commercial Investment Tax Credit is still available through 2027 for systems owned by a business. HDM Capital uses that rule to pass the savings to you upfront, as a discount on the system price.
Here is the basic structure:
- HDM Capital owns the solar system for the first 6 years.
- HDM claims the commercial tax credit and depreciation on the system.
- You pay the discounted system price upfront. The savings (often 15% to 20%) come out of the contract price.
- You have no monthly solar payment. The system is yours to use for the full 6-year term.
- After year 6, ownership transfers to you for no extra cost.
This is how the IRS rules work for third-party owned solar. The 6-year hold period is what lets HDM claim the credit and depreciation. After that, the system is fully yours.
What You Pay and What You Get
Upfront price: Discounted by roughly 30% to 35% vs. the cash price of an equivalent owned system
Monthly payment: $0. You pay once at install and have no recurring solar bill.
Escalator: None. Unlike standard PPAs, there are no annual rate increases.
Term: 6 years, then ownership transfers to you
Maintenance: HDM monitors the system and coordinates repairs during the 6-year hold period
Lien: UCC-1 on the solar equipment only. No lien on your home.
Paying the Prepaid Amount
Most homeowners cover the prepaid amount one of two ways:
Cash
If you have the funds, paying cash is the cleanest option. You get the full discount and own the system after year 6 with no ongoing payments at all.
Financing
If you want to spread the cost over time, you can use a HELOC, a credit union solar loan, Go Green Home, or another lender to finance the prepaid amount. Your monthly loan payment replaces what would have been a much higher utility bill or a longer-term standard PPA payment. With a HELOC, the interest may even be tax-deductible.
The system itself does not carry a monthly solar payment. Any monthly payment you make goes to the lender of your choice, not to HDM Capital.
How HDM Compares to a Standard Monthly PPA
Feature | HDM Prepaid PPA | Standard Monthly PPA |
Upfront cost | Discounted system price | $0 |
Monthly payment | None | Monthly bill for power produced |
Annual escalator | None | Typically 0% to 3.5% |
Term | 6 years, then you own it | 20 to 25 years |
Ownership at end | You own the system | Option to buy at fair market value |
Best for | Homeowners with cash or HELOC access | Homeowners wanting zero down |
Who HDM Capital Works Best For
- Homeowners who would have used the 30% federal tax credit but lost it after 2025
- Retirees or others with limited tax liability who could not have used the credit anyway
- Homeowners with cash available or a low-rate HELOC
- People who do not want a monthly solar bill for the next 25 years
- Homeowners planning to stay in the home at least through year 6
What Happens If You Sell Before Year 6
Most contracts allow the agreement to transfer to the new buyer without additional underwriting. If the buyer prefers to own the system outright, there is usually an early buyout option at fair market value. Talk to us before listing so we can help structure the sale.
Why Bay Area Homeowners Choose HDM Capital
Bay Area home values are high. Most homeowners here have equity, savings, or access to a HELOC. That makes the prepaid PPA structure a strong fit because the homeowner can capture the full discount upfront without taking on a 25-year monthly payment.
It also fits well with our one-contractor model. We coordinate your roof replacement, solar removal and reinstallation if needed, battery storage, and EV charger. The Solar Tech installation team handles the solar work under the HDM agreement. You get one timeline, one warranty, and one point of contact.
Cities We Serve
We are a local, woman-owned company. We serve homeowners in:
Santa Clara County Sunnyvale, Mountain View, Los Altos, Los Altos Hills, Saratoga, Palo Alto, Cupertino, Santa Clara, San Jose
San Mateo County Menlo Park, Redwood City, San Carlos, Belmont, San Mateo
Alameda County Fremont, Newark, Union City
Why Home Pro for Your Financing
Home Pro is a local, woman-owned company that has served Bay Area homeowners since 2006. The HDM Capital prepaid PPA is offered through our partnership with Solar Tech, one of California's top solar installers.
When you choose HDM Capital through Home Pro, you get:
- One contractor managing roof, solar, battery, and EV charger work
- Solar Tech handles the solar installation under the HDM agreement
- One permit and one warranty across the trades we deliver
- Help coordinating a HELOC, credit union loan, or other financing for the prepaid amount
- Honest comparison against the Participate Energy program and Enfin PPA
Related Services
- Finance overview:
- Participate Energy Prepaid PPA:
- Enfin Solar PPA:
- Prepaid Solar PPA overview:
- Solar Tech partner page:
- Solar and battery storage:
Frequently Asked Questions
Who is HDM Capital? HDM Capital is a third-party owner of residential solar systems. They claim the commercial federal tax credit and depreciation on systems they own, then pass those savings to homeowners as an upfront discount on the system price. After year 6, ownership transfers to the homeowner.
Is this really a PPA? Technically yes. HDM owns the system, and you have a Power Purchase Agreement structure during the 6-year hold period. But because you pay the discounted price upfront, you do not have monthly payments to HDM. After 6 years, the agreement ends and ownership transfers.
What is the discount based on? It is based on the commercial federal Investment Tax Credit (about 30% of the system cost) plus accelerated depreciation that HDM can claim as the system owner. They keep some of the value to cover their cost of capital and pass the rest to you, usually a 15% to 20% net discount.
Will there be a lien on my house? No. HDM files a UCC-1 on the solar equipment only. There is no lien on your home or property title.
What if I want to pay cash for the prepaid amount? Paying cash is the simplest path. You get the full discount and have no monthly payments at all. After year 6, you own the system free and clear.
Can I use a HELOC or solar loan? Yes. Many homeowners use a HELOC to finance the prepaid amount. HELOC interest may be tax-deductible. You can also use Go Green Home, a credit union loan, or another lender.
What about battery storage? Battery storage can be included in the system. The same tax credit and ownership rules apply. We handle battery planning, location, and the integration with your solar system.
What if I sell my house before year 6? The agreement usually transfers to the new buyer at no cost. Some contracts allow an early buyout at fair market value if the buyer prefers to own the system right away. We help work through the details when you list.
What happens after year 6? Ownership transfers to you at no additional cost. The system is yours. You get full benefit of any future production, you can sell the home with the system included with no transfer process, and you have no ongoing payments to HDM.
How is this different from the Participate Energy prepaid program? Both are prepaid PPAs through Solar Tech. HDM Capital uses an upfront payment model with a 6-year ownership transfer. Participate Energy is an on-bill tariff in CCA territories with no credit check or upfront payment. The right fit depends on your finances, where you live, and your goals. We compare both side by side.
Does Home Pro install the solar? Home Pro coordinates the full project. The solar work under the HDM agreement is installed by our Solar Tech partner. Home Pro manages your roof, solar removal and reinstallation if needed, battery, and EV charger as one project.
Financing Disclaimer
All financing information on this page is provided for general informational purposes only and is not a commitment to lend. Rates, terms, loan amounts, and program availability are subject to change and vary based on creditworthiness, project scope, lender requirements, and other factors. Rates shown reflect information available as of February 2026. Contact Home Pro or the applicable lender directly for current rates and terms before making any financing decisions. Home Pro Roofing and Solar is not a lender or financial advisor. Tax credit information reflects current law as understood at the time of publication and is not tax advice. Consult a qualified tax professional regarding your specific situation.
Get a Free Financing Consultation
If the residential tax credit deadline caught you on the wrong side, the HDM Capital prepaid PPA gives you a way to capture similar savings without the IRS paperwork. We will walk through the numbers in your free estimate. Call (800) 650-3134 or request a quote online.