Vivant power?

[rbdudeman]

I've been listening to many sales pitch's regarding having solar installed. Mostly I've been interested in buying my own system. Today a guy from Vivant Solar came by...this was my thoughts: "If it seems too good to be true it's..."
Anyway, in short he says there's nothing for me to pay- Vivant comes in and installs everything, I pay nothing. Vivant becomes my power company and I pay them .15 cents per kwhr. It's a 20 year contract. The cost can/would go up 2.9% per year. Which after 20 years would put the rate at about .29 cents per kwhr.
Does anybody have any experience with this company, what am I missing. It's basically the benefit of buying the system, but no out-of-pocket. Seems too good to be true. Anybody have any thoughts. Thanks

[wanabefree]

It is Vivint Solar

I've been listening to many sales pitch's regarding having solar installed. Mostly I've been interested in buying my own system. Today a guy from Vivant Solar came by...this was my thoughts: "If it seems too good to be true it's..."
Anyway, in short he says there's nothing for me to pay- Vivant comes in and installs everything, I pay nothing. Vivant becomes my power company and I pay them .15 cents per kwhr. It's a 20 year contract. The cost can/would go up 2.9% per year. Which after 20 years would put the rate at about .29 cents per kwhr.
Does anybody have any experience with this company, what am I missing. It's basically the benefit of buying the system, but no out-of-pocket. Seems too good to be true. Anybody have any thoughts. Thanks

They are the #2 Solar installer in the USA according to there Website. I also understand they are a spin off of Solar City. From what I have heard they were started by some ex Solar City Partners or some thing like that.
There PPA is almost identical to the one Solar City uses and have exactly the same 2.9% annual escalator clause which is you start out at $.15 per kw in 20yr your rate will be $.258 per kw. They are legit but you have to understand that they are basically just an alternate Power Company.

[Severum88]

You can do better....

Depending on your location, you can likely beat that piece with no escalation. PM sent.

Severum

[JohnInSoCal]

also be very careful about the contract because most are written that you are obligated to purchase all of the power generated by the panels at their price, some of the bad contracts even make you pay for over production even if you don't need it. And if you do sign this contract think about that annual escalator, it's not a given that electricity rates will continue to rise every year. Also what happens if you go to sell the house ? What if you try to sell your house to new owners that don't use as much electricity as you do ? They would have to take over your contract and pay for all the power generated by the panels even if they don't use it. I would think this would make selling your house with that anchor of a contract much tougher. Now pre-paid leases can make much more sense to me but requires up front money, but this PPA thing is just substituting your current power company for another and not only that you are locking in your rate and usage for 20 years even if you don't need it.

[smc]

Almost all companies who offer $0 down PPA also have a fixed amount you can pay over the life of the lease. They might not give you this figure unless you ask.
I would stay away from "teaser" rates with escalators.
Also, like mentioned above, ask them flat out if you have to pay for over production. Some solar companies may intentionally overbuild and hit you coming and going. I've heard of some getting burned in the fine print.

[wanabefree]

With a PPA you agree to buy all produce power.

Almost all companies who offer $0 down PPA also have a fixed amount you can pay over the life of the lease. They might not give you this figure unless you ask.
I would stay away from "teaser" rates with escalators.
Also, like mentioned above, ask them flat out if you have to pay for over production. Some solar companies may intentionally overbuild and hit you coming and going. I've heard of some getting burned in the fine print.

I am not sure if some just do not understand a PPA or they are misinformed. When you sign up for Solar on a PPA you agree to purchase all power produced at the negotiated rate. There is no such thing as over production as net metering takes care of that as you get credits and sometimes money for the excess power you might produce on a given month or at the end of the year in the case of California Net metering.

So if you decide to go with a PPA it is best not to go any bigger then you need and balance needs so that you stay in the lowest Tier rates for any usage over your solar production. Most feel that a solar system needs to produce between 70% to 90% of your annual power usage to get the best bang for you buck. In the case of a PPA too small is usually better than to big.

[prhamilton]

If you work these numbers out you will find you are financing the purchase of these panels at between 10-13% depending on a number of assumptions. Even with the high financing costs you are still saving money each month. If you have the cash or have the ability to borrow the cash for less than 10% then you will find that you will save even more each month.

To me PPA are for people that really want to go solar but no other source of funds. The financing is slightly better than a credit card...

[JCP]

If you work these numbers out you will find you are financing the purchase of these panels at between 10-13% depending on a number of assumptions. Even with the high financing costs you are still saving money each month. If you have the cash or have the ability to borrow the cash for less than 10% then you will find that you will save even more each month.

To me PPA are for people that really want to go solar but no other source of funds. The financing is slightly better than a credit card...

Indeed. Buying outright the panels, one should be able to produce electricity at $0.10/KWh, before taking into account financing costs but after Fed incentives, for 20 years. After 20 years, the cost is fully amortized and the electricity will be free, except for any maintenance cost. If you have a line of credit, use it to purchase your system and you'll come out way ahead vs. a PPA with an escalation clause.