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  • Solar Quote - prepaid lease (San Diego)

    SDG&E (0.15, 0.18, 0.29 tiered $/kwhr, average usage ~750/kwhr per month)


    5.635 kW (STC-DC)
    ET Solar Industry ET-P660245BB (23 panels)
    Power-One PVI-5000-OUTD-US (240 V)

    $12,696 pre-paid lease, 20 years (with promotion pricing)
    Works out to be 7.6 cents per kw/hr over 20 years. At the 95% guarantee production rate it works out to be 8.1 cents per kw/hr
    Right now I am paying ~20 cents average per kwhr and rates are going up in San Diego dramatically for tier 3 and 4.


    Posting for feedback and just to share with others. Will post additional quotes as I get them.

  • #2
    Why pre-paid 20 years for only saving about $1000 to $2000 to own it? remember, you will end up having someone else's property on your roof. Pre-paid solar does nothing to your property value, but trouble at the end. They make more $$$ for offering pre-paid leases, and thats why those big solar companies pushing the pre-paid lease to cash purchase customers. simple

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    • #3
      Originally posted by silversaver View Post
      Why pre-paid 20 years for only saving about $1000 to $2000 to own it? remember, you will end up having someone else's property on your roof. Pre-paid solar does nothing to your property value, but trouble at the end. They make more $$$ for offering pre-paid leases, and thats why those big solar companies pushing the pre-paid lease to cash purchase customers. simple
      Why wouldn't it enhance your property value. After all, the buyer is getting the rights to reduced electrical costs for the balance of the lease. It's equivalent to having negotiated with the POCO to prepay most of your electricity use for 20 years. Why wouldn't that be of value to the home buyer? As for trouble at the end, what are you be talking about? You get to purchase the system at FMV (probably not a large number) or simply have them remove it at no cost. After 20 years, you will likely want to be redo your roof anyway and maybe get the latest solar technology to replace it. In the meantime, you've had maintenance, repairs, and insurance for the leased system covered by the leasing company.

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      • #4
        I have to agree with Ian. I also believe the solar pv system would add value to your home and be potential draw to home buyers.

        The prepaid 20 year lease price of a 5635 watt system for $12,696 (including maintenance & repairs) is a great deal. That system will cost you approximately $2.25/watt.

        Even if you purchased a similar system at that price you will probably incur additional costs due to equipment failures which will make it more expensive than a leased system.

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        • #5
          I'm sure there are advantages on pre-paid lease, but why paying almost same amount of money out the pocket for a lease? I was expecting these panels to last longer than 20 years. Again, it is your house and I'm sure you can make the right decision. I'm not favor in lease, just me.

          We are just share the ideas of pre-paid lease.

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          • #6
            Purchase price is $27,392... $19,174 after rebate. That is a $6500 difference, not $2000. Also the lease covers replacement of the inverter within the 20 years.

            At the end of 20 years I am thinking that the FMV cannot be very high considering it will have old, outdated panels and inverter. The FMV should not include the installation value. It is going to be cheaper for these companies to leave the equipment on the roof rather than take it down (if that is what I request). Also, they probably depreciated the entire value of the equipment by that time so it is sitting on their books as a zero value asset. If not, it is going to affect the tax status of the asset if they actually sell it. I am guessing they are going to try and get people to buy with a little sales pressure tactic, but will back down and leave the equipment if they get resistance.

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            • #7
              Originally posted by silversaver View Post
              I'm sure there are advantages on pre-paid lease, but why paying almost same amount of money out the pocket for a lease? I was expecting these panels to last longer than 20 years. Again, it is your house and I'm sure you can make the right decision. I'm not favor in lease, just me.

              We are just share the ideas of pre-paid lease.
              What quotes are you getting for a purchase that are in-line with the prepaid lease cost? Please share...

              Comment


              • #8
                Originally posted by SunEagle View Post
                I have to agree with Ian. I also believe the solar pv system would add value to your home and be potential draw to home buyers.

                The prepaid 20 year lease price of a 5635 watt system for $12,696 (including maintenance & repairs) is a great deal. That system will cost you approximately $2.25/watt.

                Even if you purchased a similar system at that price you will probably incur additional costs due to equipment failures which will make it more expensive than a leased system.
                I could care less if it adds value to my house or not. I am not moving any time soon (voluntarily). I just moved into a great school district and my kid is only 3 years old. The break even point for me on this deal is ~6 years (financed with a heloc)... after that I am getting free electricity for 14 more years and possibly longer.

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                • #9
                  With ET solar panels, the buy out price is pretty high..... For Solarworld panels with SMA inverter 6kW system around $21k before Fed incentive. That is what I am basing on which pre-paid vs cash buy came pretty close. You can check with vanas for his quotation. We are working a deal with same installer together. The installer locates at San Diego area.

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                  • #10
                    Originally posted by ma6n6s6on View Post
                    Also, they probably depreciated the entire value of the equipment by that time so it is sitting on their books as a zero value asset.
                    They have it all depreciated within five years. Of course an individual homeowner who buys the system can't make use of that depreciation. It's why a prepaid lease can be a win-win for all concerned. It's not always the best option but for some folks it can be.

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                    • #11
                      Interesting ...

                      I just did a prepaid lease in CT on 2.45 KwH system -- and my all-in cost was under $2600. I don't know how the subsidies, tax bennies, etc. are different.

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