Solar power companies have been working around the clock to drive down the price of clean electricity from the sun so it can one day be as cheap as the energy we get from dirtier sources, like coal plants.
Until we get there, however, some solar panel installers have come up with a solution that they say will give more people access to solar energy. How are they doing it? By allowing customers to lease, rather than buy, the photovoltaic solar panels for their roofs.
It’s the same idea, really, that has enabled some people to get behind the wheel of a luxury car they could otherwise not afford — low or no upfront costs followed by a monthly bill.
SolarCity, based in Foster City, California, is one company that recently started offering leases to its customers. Chief Executive Lyndon Rive told Reuters he wanted to do away with the hefty cost of buying solar panels — on average about $20,000.
“Even those who really want to make an environmental change can’t part with $20,000… the solution is just too costly for them.”
Under SolarCity’s lease program, customers with a small home could pay as little as $70 a month for a 2.4 kilowatt system, Rive added. The company is also allowing customers who sign up before July 31st to put no money down on their system. After that, upfront costs should be between about $1,000 and $3,000, Rive said.
“We can essentially make it so that everybody can now afford clean power,” Rive said.
The leased projects will be financed through Morgan Stanley, and SolarCity said it will serve as a one-stop shop for both installation and financing.
Right now the program is only available in California, but SolarCity is expanding to Oregon, Arizona and has plans to go to the East Coast.
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It is nice that some solar panel installers are coming with a solution that they say will give more people access to solar energy
- Posted by solar powerAll conventional silicon wafer solar producers will be left in the dust, when Konarka solar gets its new manufacturing facility in New Bedford Ma, into operation in early 2009. They will be able to produce 100 feet of solar panel material per minute, and expect to produce 10 million sq meters of solar panel material in the 2009. Konarka has developed photovoltaic ink that will allow them to produce solar panels on a printing press.
- Posted by Bigdaveit cost too much money. you can find a better way to spend the money.$20,000 you could spend that money on a lot more imporant things. like giving homes to the homeless and heat.
- Posted by nameThis is a really great idea. Most people dont have 20 grand laying around just to help a good cause with the new renting/monthly payment idea many people will probably use this new system because it will make a huge impact on the world and help change it for the better. And it is even cheaper then cable!! Yes I know people would rather have t.v then solar pannels but look at which one will pay off in the long run for allowing you to live longer. Plus if you have to you can just push that extra want away and rent the pannels to do your part that can help fix the world.
- Posted by Best Idea!If someone can explain the recently passed solar power tax legislation in the US, I would really appreciate it. I’m trying to understand what the minimum reqiured investment is to use the credit and what type of solar equipment/installation is required?
Thanks,
Will Johnston
- Posted by Will Johnstonhttp://www.growandmake.com
I’ve been looking at getting a solar PV system for my home for a couple years and was impressed with SolarCity’s lease option. The only catch that I find is that they seem to be charging more for the system than if I would have purchased the system outright. I received two quotes for the system; one for purchase and one for lease. I can only estimate the lease rate but after calculating the monthly payments, approximate interest, and buyout amount, it seems as though they have increased the cost per watt. The original cost was in line with other bids from other contractors that I had received. However, the lease rate seems like they’ve increased the cost per watt by about $2 (which can increase the total amount for a 3kw system by $6,000). That’s the cost that’s being passed on to Morgan Stanley (they are the bank in the background). I’ve asked them to provide me with a cost per watt for the lease but they won’t do that.
I’m not overly familiar with how the rebates work, but from my understanding they are using both the commercial rebate (because the bank is buying the system) and the residential rebate offered by the local utility provider (because it’s being installed on a residential property). This “double dipping” doesn’t happen on the purchase option, only with the lease option. And as nrg-ngr mentions above, the 30% tax credit expires this year. I’ve heard that this credit won’t expire completely, it just gets reduced to 10% unless Bush provides the funding to continue this program. This reduced tax credit will only increase the lease rate as of next year.
The numbers still work out for my case but it worries me to know that they are the only company that offers this lease and may be taking advantage of this. Since this lease is new, I have to imagine that other companies will follow and offer similar lease options and that would hoping provide the checks and balances that are needed in the system.
- Posted by SWSolarCity will abandon the installed system at your home at the end of the 15 year lease. This means that you still retain the hardware and all the functionality of the sytem after they abandon. The only thing you are responsible for after their abandonment are repairs as the warranty would be expired. Really becomes a great deal to the consumer to lease the system.
- Posted by BvBMy PG&E bill is approximately $750/month in the summer time. They system I am having SolarCity install is going to cost me $286 per month. I will have over $400 per month in savings. Work that out over 15 years and its a no brainer.
I’ve been in the solar business in CA for the last 30 years. There is a story here every week about some new revolutionary solar breakthrough that will happen about the same time as the sun burns out. This is with the local VCs dumping millions of their investors dollars into these projects. A little co. in Texas has less of a chance of getting something off the ground as these guys here in Silicon Valley.
- Posted by BruceThe existing silicon based solar modules are a 50 year old technology that will not be eclipsed by the cheap new breakthrough thinfilm technology that the takes acres instead of a few square feet to do the same job.
The reality is if you borrow to buy a solar system now, you will be so far ahead that all the lease calculation justifications or the thousands of dollars you pay the utility for the same power will not make any sense.
i saw something on tv. the basic set up was this. there were mirrors on the rooftop in lines that would follow the sun. they would beam a light into a small photovoltaic cell at the top. (similiar to a satellite dish design) the intent was to maximize efficiency and make it cheap. i think its still in the testing stages though.
- Posted by CallumThis is a great idea, I wish it were available outside of California.
- Posted by MoneyTo Ed: I noticed loads of request for the name of the company supposedly mentioned by Ed - “There is a small company in Spring, Texas that has developed a new power generation system that will provide almost half the 10,655 kilowatt-hours (kWh)”. I am still waiting like many others for the name of this company!!!.
- Posted by Williedoes it need also an installation?
- Posted by electrical installation