Comments on: Solar power for less than your cable bill

By: Minh

Minh — Thu, 26 Jun 2008 19:26:21 +0000

Hello:
15k or 20k for a solar system may be a big amount for normal people. I tried to calculate for 3 kWh and the result is about 20 k.
Why the solar system producer/ manufacturer does not put them in a modular system (5k, next: 10k, next 15k …).
Anyway I am working on some projects to promote the solar energy use in Arizona … It is a lot of energy here from the sun now (110 degree Fahrenheit) and that is free.
Bye, Minh

By: John

John — Wed, 25 Jun 2008 05:33:40 +0000

Frustrated by lack of state incentives? Join the club. I did some research and found out my state, Oklahoma, is 14th in the nation in insolation rate or amount of sunshine received on an annual basis - yet our state incentives are dismal. Furthermore, when the sun isn’t shining here, the wind is usually blowing so there’s another green power opportunity. I’m terribly frustrated my state is so far behind taking advantage of such opportunities.

As consumers, we need to change our thinking about green power. We don’t bat an eye at spending $20,000 to remodel a kitchen - but doing the same for solar panels on the house is such a difficult decision? Please. Solar no doubt offers the same if not a greater return on the investment particular in a future housing market where young buyers will be seeking out these green power options.

Solar installers need to be more creative too to help change our thinking. Since the systems are modular, why not start a homeowner off with a more financially palatable, $5000, grid-connected system? Yes, the homeowner would see only a small reduction in his utility costs but would they then realize the bigger impact of a more expanded system? I don’t know jack about installing solar, but I can’t imagine it would be that more difficult to then upgrade the system with more panels and higher capacity.

By: Bryan K.

Bryan K. — Sun, 22 Jun 2008 02:11:13 +0000

Bob,

The lease buyout is in very small print at the bottom of the lease program example on Solar City’s website. The buyout is $14,000. I can’t wait until Solar City comes to the East Coast and I hope that includes Maryland because I want to seell for them when they get here!!!

By: Ronnie Twyne

Ronnie Twyne — Thu, 19 Jun 2008 23:09:40 +0000

I live on the east coast of North Carolina and I can not wait to see Solar City come this way. I don’t mind the leasing program because I know in few years down the road I can have Solar City upgrade the system to one that utilizes newer technologies thus by only costing me little to none, a month, for that upgrade. In short, leasing is not for everyone.

There are a few wind machines here but I can’t install one since I live near an airport. There are even fewer solar panels being used but solar energy is my best and, most likely, my only option. So, Solar City, the sun is shining and my roof is bare and waiting for an installation. Get on with it, would ya!?!?

By: Ben Siebert

Ben Siebert — Sat, 14 Jun 2008 18:13:12 +0000

As the owner of a Solar Energy company, I know this lease to be a joke, and totally an unnecessary rip off. When we sell a system outright, we never take more than $1000 down, in fact it is state contract law. If anyone takes more, its illegal. Then, our systems ALWAYS save the customer money from day one, i.e. the payment for the system is less than the amount of electric bill we eliminate with solar. The caveat is that the electric bill needs to be over $150 mo to break even or better. But when our loan period is done (10 - 20 yrs customer’s choice) the system on their roof is thiers to keep, not theirs to buy.

PLUS!! The market rate for a 2.5kW system in CA is about $20,000, so basically, this lease means you first buy the system on payments, then you buy it again at lease end. Its a ripoff.

By: Jeff Critten

Jeff Critten — Fri, 13 Jun 2008 06:25:25 +0000

Bob,

I did an analysis of the residual value in the lease program. With any lease you simply can’t add the two figures together. You need to account for the future value of money. For instance, if your rate of return on your investments is a modest 5% annually, the present value of the residual payment is much less than $15k. The way to look at the lease is whether it is cash flow positive and how it compares to paying your utility company. For instance, if you lease a system at $120/month and it saves you $180 in PG&E bills - then that is a $60/month net gain. Furthermore, PG&E rates will only go up so that savings will increase over time. 15 years from now you could have them take the system away and you would have saved significantly over the term of the program. A car lease is not a valid comparison since a car does not generate income and a car is on a rapid depreciation profile. Hope this helps since understanding the concept of leasing solar is complex and not as simple as adding some basic numbers together. I have done a full analysis and it is a win situation even with very low rates of return.

Jeff.

By: Bob

Bob — Thu, 12 Jun 2008 17:42:45 +0000

Financially speaking, when they say you can buy the system outright after the lease expires, I notice nothing on costs of that option. If it’s like auto leases then it can be summed up as a huge ripoff. So for instance if you paid $15,000 over the 15 year life of the lease, which actually is a low ball figure and they want to sell it to you for $15,000 after lease expiration, then it’s a blind ripoff. Anyone have any more information on the cost at end of lease?

By: Jerry Fabula

Jerry Fabula — Wed, 11 Jun 2008 19:42:59 +0000

Its about time that lease option is available. The lease payment will sure offset the bills because the kwh use from the utility will be reduce.

By: Elizabeth

Elizabeth — Tue, 10 Jun 2008 20:21:10 +0000

SolarCity has a lease program for $70 month, would I be saveing that much on my elec. bill?

By: nrg-ngr

nrg-ngr — Fri, 23 May 2008 18:35:49 +0000

To those in AZ, NV, and most other states in the US, the reason solar projects have not been abounding in your states is because your states don’t provide incentive subsidies for solar power. All California ratepayers pay a Public Goods Charge (a fraction of a cent for each kilowatt hour used) which contributes to the progressive incentive programs for energy efficiency, renewable energy, and sustainable development in California. Without subsidies, the payback for solar power is still very long. (I’ve heard Nevada may start a solar rebate program.) If you want progress on alternative energy sources, tell your state legislators!!!

Also, the federal tax credits for renewable energy projects are going to expire on Dec. 31, 2008. The oil lobby is against the tax credits, so George Bush won’t sign the legislation.
Join The We Campaign at wecansolveit.org
http://www.wecansolveit.org/page/s/tax
and tell your legislators to pass the extention and override Bush’s certain veto!