Feedback on Sunpower quote: Orange County, CA

[frizzlefry]

This forum has been a wealth of knowledge and allowed me to ask the proper questions to the various companies that we are soliciting quotes from. Here is a recent one, and I wanted to get honest opinions on if the price is reasonable given the size of the system and which option would be better:

Current Avg Util bill: $260

Purchase: 24 SP 327 w/ SPR 7000 Inverter
annual Output 11,945 kWh
Cost = $39,985
Net of Rebates and Credits = $26,775

Prepaid Lease: 24 SP 327 w/ SPR 7000 Inverter
Annual Output 11,472 kWh (not sure why this differs from the above....)
One payment of $26,542
New Util bill = $30

So what's interesting to me is on the "Remaining Value Amount" on the lease, years 7 through 17 show $1600 but starts increasing until 20yrs which it is at $5436.

Given the information above, would it be worth it to go with the prepaid lease being that it is within $200 of the net purchased price? Hoping to get some solid information so we can make the right decision. I've received bids from SolarCity as well, and their differential between net purchase price and prepaid lease payment was $5k.

[bonaire]

What is your avg. # of kWh consumed per month? Are you pushing into any higher-tier rates now? Do you have any plans to buy an EV in the next 10-15 years?

It's somewhat typical to have an inverter replaced after 11-14 years. The lease probably contains replacement cost into their numbers but a purchase of the system doesn't.

Have you done any conservation steps in getting to this point? One dollar spent on conservation is worth five dollars of a Solar PV solution (or more). A lot of people will be buying plug-in vehicles over the next few years so if you will be one of them, "fueling at home" may be of interest.

[Naptown]

Seems to me they have really upped the price on the prepays.
Discount SC they have always been overpriced on their purchases.
That deal works out to be just over $5.00 a watt. Granted this is sunpower and is as good as it gets equipment wise.
That is a bit steep for the average system (not Sunpower) at least here in Maryland (don't know about Ca.)
If there is room on the roof to use a larger panel with the approx same output you may be able to do a bit better price wise on a purchase.

[frizzlefry]

What is your avg. # of kWh consumed per month? Are you pushing into any higher-tier rates now? Do you have any plans to buy an EV in the next 10-15 years?

It's somewhat typical to have an inverter replaced after 11-14 years. The lease probably contains replacement cost into their numbers but a purchase of the system doesn't.

Have you done any conservation steps in getting to this point? One dollar spent on conservation is worth five dollars of a Solar PV solution (or more). A lot of people will be buying plug-in vehicles over the next few years so if you will be one of them, "fueling at home" may be of interest.

We consistently hit Tier 4-5 during summer months. Will hit Tier 4 during colder winter months. No EV as of yet, but it's always a possibility. The house is new, finished building in 2011. So all new appliances, well insulated home.

Our usage/month ranges from 900+ to 1500 (peak summer). The home is approx 3700sqft with 2 HVAC units (6 zones). Definitely sounds like they're pushing for a purchase. I'm somewhat nervous about a lease due to unknown FMV at the end of 20yrs. Basically a 20yr old panel from SP will still have 5 more yrs of warranty. So assuming 80-90% performance, and additional life of 5yrs, the power generated still has significant value. Working on getting some other SP dealer quotes over the next couple of weeks. Wish the pricing could be lower here... does seem quite higher than what others are paying elsewhere.

Roof was walked today... possibly able to get 28 panels on the roof. Unfortunately, I was told we cannot put a system up that would generate alot more than we need.

[frizzlefry]

Seems to me they have really upped the price on the prepays.
Discount SC they have always been overpriced on their purchases.
That deal works out to be just over $5.00 a watt. Granted this is sunpower and is as good as it gets equipment wise.
That is a bit steep for the average system (not Sunpower) at least here in Maryland (don't know about Ca.)
If there is room on the roof to use a larger panel with the approx same output you may be able to do a bit better price wise on a purchase.

It looks like they're thinking we can fit 28 panels... but that bumps up the quote:

System Cost: $45k
CSI: -$2k
Tax credit: -$13k
Net: $30k
13.8kWh/yr
9kW DC
38.2 kWh/day
Avg usage 37.8 kWh/day

This would cover 100% of our usage with room to grow (2 kids, 4yr old and baby). And I wouldn't have to monitor our AC usage as much. Decisions, decisions, decisions....

BTW, for those of you that purchased, did you do a HELOC? And it's my understanding the interest is deductible... if it is, time to adjust my calculation tables.

[bonaire]

Heloc interest is deductible. Now. Don't plan on it "super-long term". I'm trying to pay my Heloc down quickly (and mortgage too - I always suggest 15-year fixed for anyone buying a house). My opinion is that to fix our nation's debt, we really need to limit the amount of deductions and perhaps killing off Heloc interest is one way. We used to be able to deduct credit card interest in the early 1990s - remember that? I would support limits on interest deductions as some government officials have talked about. Deductible credit card interest was supposed to "help the economy" back then. But it's an enabler and not really helpful long-term.

We paid cash for our Solar PV install. 1/2 was ground mount and 1/2 on a shed roof. 32 255W modules. Price about $4.82/W. I think your price is just under $5/W. Don't pay more than $5/Watt. It's really not worth it. A few hiccups along the way for our install but the system is sound. And it's all USA-made components (PowerOne, SolarWorld, all-American labor, racking, etc.) I honestly wouldn't suggest taking a loan out for a Solar PV system. It makes the overall system price go up by as much as $1/Watt when you factor in the annual interest over the life of paying down the loan. Possibly wait it out - 1 or 2 years, watch prices come down, watch for deals on installations and save the money in a good investment vehicle for the Solar PV system. Save before buying - it's what our parents used to do

Shop various installers. Even tell your original guy that you want to shop it around.

3700 sq ft is a pretty sizeable house and power usage is about right for that size. Our house is a bit smaller and we were up over 2000 kWh/mo but found a problem with our well pump and once it was replaced, things got better. We only go over 2000 when my wife's parents are visiting with their RV in the summer and plugged into the 50A service outside.