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Assuming we're talking about purchase or prepaid lease then folks often calculate a gross $/W which is the total system cost say $15,000 divided by the nameplate power in watts, say 5,000 or 5 kW to arrive at $3/W. That way you can compare different sized systems in a reasonable way. However, a separate calculation is also made in which all the incentives and tax credits are deducted from the gross price then another net cost per W is determined. That is your out-of-pocket cost when all is said and done. In the case of a prepaid lease, the lessor gets all the tax credits and incentives (at least here in Arizona) but the cost per kW can often be less than the net cost for a purchase because of additional tax benefits the lessor can get. If you are being quoted $2 per W for a prepaid lease, that could be a great deal.
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Ian thanks for explaining that. Here are the four quotes I am looking over right now and waiting on the final quote on Wednesday. Is the per kw price the thing I should be focusing on the most when deciding? I would really appreciate all opinions on these options.
If I left any details off that you would need in helping determine the best deal I am happy to look up anything.
Option 1 - Cash Purchase
14.6 kWp -28,000 kwh
54 x Mono 270 watt LG panel’s (LG270S1C-A3) w/ DC optomizers
$43,750.00 Gross System Price
‐$250.00 State or Utility Rebates
‐$1,000.00 State Tax Credit
‐$13,125.00 Federal Tax Credit
=$29,375 Net Price After Rebates and Credits
$3.00 Per KW pre rebate
$2.01 per KW after rebates
Option 2 - 20yr PPL
16.5 kWp -26,299 kwh
66 x 250 watt Hyundai Poly panels w/ string inverter
$26,081
$1.59 per KW
*This one does include putting six panels on the east side of my house to get enough yearly output, but based on the price of $1.59 per kw, not sure if I should care. Azimuth 60 on east side & 240 on west side.
Option 3 - 20yr lease no increase in payment.
13.7 kWp - 24,495 kwh
42 x SunPower E20/327 Solar Panel w/ string inverter
$146 per month
$2.56 per kw
Option 4 - Cash Purchase
14.1 KwP - 24,950 kwh
42 x SunPower X21/335 Solar Panel w/ string inverter
$45,570
-$14,671 Tax credits
$30,899 Net Price
$3.23 per kw pre rebate
$2.19 per kw post rebate
1 x PVI-6000-OUTD-US-A - 240v (SPR-6001p-TL)
1 x PVI-6000-OUTD-US-A - 240v (SPR-6001p-TL)Comment
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Goodness, you must use a lot of electricity! FWIW, Option 1 seems a bit optimistic on the annual production with a number of 1.92 kWh per W nameplate power. My actual real life value is around 1.72. You can calculate what the other options are. That's a pretty impressive (low) cost $/W for Sunpower. (N.B. it's $/W not $/kW.) Re pricing overall: eat your hearts out Cali-bois!
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We used 30k kwh last year. I thought the same thing about the output and when I asked about it I was told it was due to the optimizers that allowed it to be that high. I do like the Sunpower X series panels, but right now I am leaning toward the lease. Tomorrows quote will be for Sunpower as we and I am optimistic maybe I can get the two competing on the lease. I believe the lease won't be an issue when we go to sell the house. I take the perspective that if I was buying a house with rates locked in from 2014 in 2020 having solar would be a benefit. I would however play the card that I don't want it to try and get a better deal, but think I can cross this issue when it happens. Worst case I buy out the remaining lease term. I keep telling the leasing company that if they will do $125 I will do the deal. So far they have not been willing to budge, but I wouldn't negotiate with myself eitherGoodness, you must use a lot of electricity! FWIW, Option 1 seems a bit optimistic on the annual production with a number of 1.92 kWh per W nameplate power. My actual real life value is around 1.72. You can calculate what the other options are. That's a pretty impressive (low) cost $/W for Sunpower. (N.B. it's $/W not $/kW.) Re pricing overall: eat your hearts out Cali-bois!
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Tyler, I also live in Gilbert AZ...would you mind PMng me the name of the vendor that gave you the purchase option you list? I tried PMng you but dont have enough posts yet apparently. Thanks.Comment
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I live in Chandler and purchased an 11kw system (250W Canadian Solar panels with 2 SMA central inverters, no SolarEdge or Enphase optimizers) last year and my system came out to be $2.50/W DC before any rebates. PM me if you want to know who my installer is.
If you don't have any shade issue, I highly recommend to use simple central inverters on the ground and not put microinverters or DC optimizers up on the roof. It's too hot in AZ to put electronics up on the roof.Comment
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Copying my update from another thread I had going. Like to give closure/updates when I can.
Thanks for all the input. After considering way too many factors, if that is possible, I decided to go with a lease. I will say the more I learned the quicker I was to call out the BS when meeting with the sales reps. Out of the eight people that came to my house I only felt like two were honest with the rest either just looking out for their best interest/commission or lacking knowledge on what they're selling. I would venture to assume most people that do solar don't do nearly the research that most of us here are doing before a commitment is made. It also says a lot when a rep is willing to exchange several emails with me along with a few hours, combined, on the phone answering my questions and listening to my thought process and discussing flaws in my thinking.
With myself being in sales I was amazed that out of the eight presentations only three followed up after the meeting.Comment
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Thanks for the udpate and congrats on reaching a decision! My hat off for you to take the time to talk with and host 8 companies to learn your options. Looks like you definitely did your homework and I'm sure you'll be happy that you know you made an informed decision.Comment
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After a few months of waiting, they started the install on Tuesday. Three gentleman have been working over three days on the install and back at it today. I never would of thought it would have taken four days to get 42 panels installed. I am however extremely pleased with the quality of work and attention to detail on the things I can see.
Will update with some pictures when it is completed.Comment
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Tyler- I live in Chandler and am in the process of getting quotes. Am curious to know who you went with and what your experience was.Comment
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