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  • Solar City Owns RECs

    I am working with Solar City on a solar system purchase, however I notice that they give you around $4,500 for all the RECs as a one lump credit when you buy the system. From what I'm being told is that they own the RECs generated for the life of the system or I'm assuming at least 20 years. I know that NJ is pretty good for REC value. I feel like I'm getting taken advantage of, those RECs could add up to thousands from what I've been reading. This is a purchase though their loan partners, it is not a lease.

  • #2
    Howdy lightman02 and welcome to Solar Panel Talk, have your read the reviews for solar city? I would start there. Here is a link to info about SREC's in NJ http://programs.dsireusa.org/system/program/detail/5687

    At the end of the day I suggest more quotes would be a good idea, although I do remember someone posting recently who said they bought a system from solar city for under $3.50 per watt and thats quite a reasonable price. As to the future of SREC's .....well I would take the lump sum upfront and be happy, cheers. Good luck with it. Keep reading
    Last edited by solar pete; 02-15-2017, 07:35 PM.

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    • #3
      This is why you read and understand all the fine print of solar contracts. Sounds like you are doing a good job.............

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      • #4
        What did you expect dealing with Elon Musk?
        MSEE, PE

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        • #5
          Originally posted by lightman02 View Post
          I am working with Solar City on a solar system purchase.
          My condolences for your loss.

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          • #6
            Originally posted by solar pete View Post
            Howdy lightman02 and welcome to Solar Panel Talk, have your read the reviews for solar city? I would start there. Here is a link to info about SREC's in NJ http://programs.dsireusa.org/system/program/detail/5687

            At the end of the day I suggest more quotes would be a good idea, although I do remember someone posting recently who said they bought a system from solar city for under $3.50 per watt and thats quite a reasonable price. As to the future of SREC's .....well I would take the lump sum upfront and be happy, cheers. Good luck with it. Keep reading
            Problem with this is that an SREC is worth around $200+ in my state, I can lose a lot of money taking the lump sum of $4,500 for 20 years worth of SREC's. Is there anyone from NJ that has this deal?

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            • #7
              Originally posted by J.P.M. View Post

              My condolences for your loss.
              The only reason I am considering them is that they are one of the biggest most likely not going anywhere.

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              • #8
                Originally posted by lightman02 View Post

                The only reason I am considering them is that they are one of the biggest most likely not going anywhere.
                Big doesn't imply financial stability. SC was nearly chapter 11 last year when Tesla bailed them out. Teslas main focus is cars and batteries, if the residential solar continues to flounder, I am pretty sure it will be forced to be dropped....
                OutBack FP1 w/ CS6P-250P http://bit.ly/1Sg5VNH

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                • #9
                  Originally posted by lightman02 View Post

                  Problem with this is that an SREC is worth around $200+ in my state, I can lose a lot of money taking the lump sum of $4,500 for 20 years worth of SREC's. Is there anyone from NJ that has this deal?
                  SRECs are a market. You could also lose a lot of money staying in the market instead of the lump sum. SREC markets fluctuate wildly with legislation and demand.
                  OutBack FP1 w/ CS6P-250P http://bit.ly/1Sg5VNH

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                  • #10
                    Originally posted by ButchDeal View Post

                    SRECs are a market. You could also lose a lot of money staying in the market instead of the lump sum. SREC markets fluctuate wildly with legislation and demand.
                    Yes, however being the way the market is in NJ area I don't see myself losing money by not taking the lump sum, I don't see how I wouldn't be able to make at least the $4,500 in credits easily, not to mention the excess that I could possibly make, The market has to be promising for Solar City to want to rob you of your REC value.

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                    • #11
                      Originally posted by lightman02 View Post

                      Yes, however being the way the market is in NJ area I don't see myself losing money by not taking the lump sum, I don't see how I wouldn't be able to make at least the $4,500 in credits easily, not to mention the excess that I could possibly make, The market has to be promising for Solar City to want to rob you of your REC value.
                      if it was so great, SC would be in much better financial state.

                      I am with you, I would prefer the recs and sell mine on SRECTrade but most SREC markets go down over time and that is not likely to change with current political environment. A hell of a lot can happen in 20 years. For me I wasn't even sure I could sell my RECs at the time so it was more of a bonus. We only count on 5 years of revenue on them in the financial models when we sell systems in SREC states, unless there is a contract.
                      OutBack FP1 w/ CS6P-250P http://bit.ly/1Sg5VNH

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                      • #12
                        Originally posted by ButchDeal View Post

                        if it was so great, SC would be in much better financial state.

                        I am with you, I would prefer the recs and sell mine on SRECTrade but most SREC markets go down over time and that is not likely to change with current political environment. A hell of a lot can happen in 20 years. For me I wasn't even sure I could sell my RECs at the time so it was more of a bonus. We only count on 5 years of revenue on them in the financial models when we sell systems in SREC states, unless there is a contract.
                        True, but I guess my point is in 5 years I would have made back the money they would have paid me plus possibly more. My other stance on it, I would own the system, I rather have full control of the power I am putting back into the grid them possibly let someone else other them me profit from the power my system is producing.

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                        • #13
                          Originally posted by lightman02 View Post

                          The only reason I am considering them is that they are one of the biggest most likely not going anywhere.
                          And, to my experience as the guy in my HOA that reviews and recommends approvals to the HOA board after review of all the PV projects, and IMO only, the most likely way to get a poor quality installation and screwed financially for the trouble. You drank the Kool-Aid. I hope it works out for you. More opinion only: As for SC not going anywhere, the world would be a better place, and the health of the PV industry would be better if SolarCity simply disappeared. More conjecture: Other, perhaps local vendors will make a living in the future by cleaning up SC's mess. A great marketing opportunity maybe.

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                          • #14
                            Originally posted by J.P.M. View Post

                            And, to my experience as the guy in my HOA that reviews and recommends approvals to the HOA board after review of all the PV projects, and IMO only, the most likely way to get a poor quality installation and screwed financially for the trouble. You drank the Kool-Aid. I hope it works out for you. More opinion only: As for SC not going anywhere, the world would be a better place, and the health of the PV industry would be better if SolarCity simply disappeared. More conjecture: Other, perhaps local vendors will make a living in the future by cleaning up SC's mess. A great marketing opportunity maybe.
                            Yes, I appreciate the input, looking online it looks like they are pretty much going to put themselves out of business with all the unhappy customers. I am surprised that there isn't a lawsuit with all the solar lease scams they have been running.

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                            • #15
                              Originally posted by lightman02 View Post

                              Yes, I appreciate the input, looking online it looks like they are pretty much going to put themselves out of business with all the unhappy customers. I am surprised that there isn't a lawsuit with all the solar lease scams they have been running.
                              I forgot to add that they'll probably be around and about as reliable as they were after net metering was gutted in Nevada - almost like a midnite scoot before the ink was dry on the legislation.

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