Best way to finance solar?

[dbizzle22]

Great info and debate here guys.

I've been getting quotes for a solar system for a few weeks now but haven't stopped to think about how I was going to pay for it. Just kind of assumed that I would get 0% financing or something low due to my excellent credit score. Unless its 0% financing then I really might shoot myself in the foot and end up paying more than what I was paying my local power company.

[russ]

Just kind of assumed that I would get 0% financing or something low due to my excellent credit score. Unless its 0% financing then I really might shoot myself in the foot and end up paying more than what I was paying my local power company.

No such thing as zero percent financing - someone is paying it - either through a jacked up cost of maybe tax payers.

[bonaire]

zero percent financing is based on this:

Many people - a high percent of them - take the 0% fnancing hoping to pay it off by the term date. They don't and then the wrath of the 20%+ and higher percentage accumulated interest comes and bites them. Who pays for these loans, the customer. It's a bit predatory but it's what it is.

Honestly - I've concluded that if you cannot pay cash for solar pv, it may not be worth doing unless you live in a state which is raising electric rates. Those states are California and Hawaii. There, financing may make sense.

Where do you live, what is your per-kWh current grid price of electricity? If it is below say .17/kWh then consider conservation and the use of timers on certain things like computers and DVRs to help cut electric costs. Of course the standard switching over of light bulbs is pretty helpful.

[Naptown]

here is the reality on the 0% financing. You are paying for it. When a dealer offers this or takes credit cards they pay the finance company a fee. This is a cost of doing business just like labor or permit fees etc and the cost of which is built into the price. There are a few companies out there that will give you a discount if you pay by means other than credit card or the 0% interest deals. Most won't even tell you.

[bonaire]

And for those who think Natural Gas prices are some magical solution to electric rates nationally - NG prices were up 20% in 13Q1. Cheap NG and other fuels will not be cheap forever. But we can't be sure that electric prices will be rising at all or at what rate in the near-term. Except in the production-starved and extortion-based POCO prices in the California region. If someone is interested in Solar, there are also leases available for someone who doesn't have the up-front cash. Soar leases may help keep installers and product sales going.

[russ]

And for those who think Natural Gas prices are some magical solution to electric rates nationally - NG prices were up 20% in 13Q1.Never look at gas prices short term - meaningless except to tell you the weather or of a disaster in the supply line.

Cheap NG and other fuels will not be cheap forever.At present wholesale price for major consumers in India are in the range of 15 to 20$ US per million BTU - very costly - we are curtailing many operations due to high cost.

But we can't be sure that electric prices will be rising at all or at what rate in the near-term. Except in the production-starved and extortion-based POCO prices in the California region.Not POCO or utility prices - the high prices are due to the airheaded "green" policies of governor moonbeam and his ilk.

If someone is interested in Solar, there are also leases available for someone who doesn't have the up-front cash. Soar leases may help keep installers and product sales going.

Comments in bold in the text - blaming the POCO for rates is usually a bit off base.

[dbizzle22]

I do live in California and my Tier 3 and 4 rates are something in the mid 30's. My monthly bills before my pool pump upgrade were $275-$300 range. I should see a nice drop off after my pool pump upgrade though so I have downsized my solar requirements. But still a little hard to say if I'm overbuying or not now. Now the question is to wait it out and possibly miss out on some rebates or buy it now.

So far the company I'm likely going with offered me a 18 month 0% loan. I have to see the official paperwork though to see what the interest rates go up to but I at least get 18 months to get my rebate and pay the loan down with it.

[bonaire]

Pocos make the tiered rates so they are to blame for much of it. But there is more to the story, I'm sure. They need more in state generation for one. Why is SCE asking for their rate increases? Variety of reasons, I guess.

[russ]

Pocos make the tiered rates so they are to blame for much of it. But there is more to the story, I'm sure. They need more in state generation for one. Why is SCE asking for their rate increases? Variety of reasons, I guess.

The POCO must post financial information publicly?

All rates are set by the state - they are requested by the POCO.

THe money is required to support various green schemes, free power for the poor, solar subsidies they are forced to provide etc.

[SharpT]

The POCO must post financial information publicly?

All rates are set by the state - they are requested by the POCO.

The money is required to support various green schemes, free power for the poor, solar subsidies they are forced to provide etc.

This is why in California, it is important to stay out of Tier 3 and 4 by installing a few panels on your roof. Payback is fast at $0.32/Kwhr. About 4 years in my case. And you stop funding all these silly socialist programs. This was one of my motivations to self install 6 panels on my roof.

--
SharpT

[insaneoctane]

I've come to the conclusion that I'm either going to have to pay cash, or spring my desire to finance at 0% with my installer at the end (prior to install, though!) and see if there is any room there.

Also, if more and more people go solar in California, the power companies will simply increase the lower tier prices or create a new/higher "connected to the grid" fees. Either way, they will get their money (IMO).

Thanks for all the helpful replies to the thread.

[Sunking]

Also, if more and more people go solar in California, the power companies will simply increase the lower tier prices or create a new/higher "connected to the grid" fees. Either way, they will get their money

Throw the SOB's and B's out of a job in Sacramento. Vote people in that will build conventional power plants and lower your electric bills and taxes. In Tx we pay 8-cents per Kwh and use all you want. Rates are expected to go down here. We have lot's of energy here. So much so we sell to Calaphonie at extremely high prices to punish you. Just like AZ and NV are doing to you. You got what you asked for. For now you are stuck with Brown, Boxer and Pelosi, and their stupidity.

[bonaire]

The crazy thing in Cali is that many people will install solar so that mid day demand is a little lower and then less money is collected from residents which leads them to increase the lower tier rates, as said above. Solar is saving individuals money while hurting others. The state power commission is to blame for the crazy tiers out there. As Sunking says, build more power plants and things get better. Also, move data centers out of state and up to Oregon and Washington where electricity is cheaper. The state is unsustainable while trying to maintain their stance for sustainability.

[Sunking]

Solar is saving individuals money while hurting others.

Very privileged individuals who can afford to do so with their neighbors money. In the meantime livng off the backs of those who cannot afford to participate. When will the public wake up?

North Korea just may send you a message California!

[Ian S]

In Tx we pay 8-cents per Kwh

Where exactly do you get such a low rate?