Best way to finance solar?

[SunEagle]

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!

Not the kind of nuke they need but it may be a wake up call for someone. Hopefully no one anywhere gets hurt.

[Sunking]

Where exactly do you get such a low rate?

From multiple providers just pick one like this.

Look at it and you will realize I mislead you. It is quite a bit less than 8 cents down to 5.6. Like I have said, there is no energy crisis, just Morons who put up with it. Now maybe you will undersyand why Texas wants to Succeed from the Union.

[Ian S]

From multiple providers just pick one like this.

Look at it and you will realize I mislead you. It is quite a bit less than 8 cents down to 5.6.

Oh boy, that low rate is actually billed as an "introductory rate" and it's on a month-to-month basis. Gee, I wonder how long it will STAY that cheap for the poor schmuck who chooses it. Plus, isn't there a separate charge for transmission and distribution? For a lengthy alternate view (pdf) on the wonders of Texas deregulation see here.

[inetdog]

From multiple providers just pick one like this.

Look at it and you will realize I mislead you. It is quite a bit less than 8 cents down to 5.6. Like I have said, there is no energy crisis, just Morons who put up with it. Now maybe you will undersyand why Texas wants to Succeed from the Union.

Looking deeper into the Bounce Energy (5.6 cent) link on that site, I see that they offer you "locked-in" rates ranging from $.10 for 3 months to $.108 for 24 months. And it is not clear whether that included TDU or not.

Now, if you want to make a full time job of it, you could go month to month, changing providers each month to preserve the introductory rate. The electrons won't know the difference.

[insaneoctane]

You got what you asked for. For now you are stuck with Brown, Boxer and Pelosi, and their stupidity.

Please don't assume that because California has stupid people that out vote smart people that all Californian's asked for this! I never voted for those idiots (oh, contrar) and I'm very sad, on a daily basis, they are constantly ruining my life. Unfortunately, my industry/profession is primarily in So Cal, so I'm kinda stuck. I love the weather and HATE the politics. By the way, to make others feel good and to expose the corruption in California, my tier structure is:

tier 1 (0 - 354)kwh $0.13/kwh
tier 2 (354 - 460)kwh $0.16/kwh
tier 3 (460 - 710)kwh $0.27/kwh
tier 4 (710 - 1064)kwh $0.31/kwh
tier 2 (1064+)kwh $0.34/kwh

[JohnR]

In the countless of meetings i have had with solar companies here is my findings!

--term of lease.. some have 10 years, some 15 , most i have seen are 20 year leases.
--Price of lease.. I found a company that will give me a 40-47% savings with no increase in the payment for the term.
--Credit Score required. most companies i spoke with want a 700 credit score. I found a company with No credit check at all.
--roof mount or ground mount? some companies wont get involved in ground mounts.
--Will your system cover 100% of your electric?
I have another post here going into more detail but basically i have a locked in rate of 242.50 a mo. 15 year lease, No upfront money. ground mount system for 22.05 KWH.
My average electric bill is 400-450 per month so for me you can see the savings are pretty extreme, and as electric rates go up over the 15 years My payment will remain the same.
Buying a system for me is just out of the question the system i would require would be @$90,000.

[russ]

Oh boy, that low rate is actually billed as an "introductory rate" and it's on a month-to-month basis. Gee, I wonder how long it will STAY that cheap for the poor schmuck who chooses it. Plus, isn't there a separate charge for transmission and distribution? For a lengthy alternate view (pdf) on the wonders of Texas deregulation see here.

Ed Wallace is one of your left wing loony gods? What makes him any more reliable than the barber?

[nezz621]

I asked my solar vendor if they can do zero percent financing.

I told them that I don't want to pay cash for the full amount, nor get a personal loan from the bank, or pay using my credit card. Personal loan/credit card has too high of APR for the solar system to be even worth it.


The vendor then offered me zero percent financing for three years. He asked me for $3k for downpayment for the 7.2kw system though....

sometimes these companies don't advertise that they offer zero percent financing.............but if you ask, and they really want your business, they'll offer it.

This is what I'm hoping for but I haven't found it yet. I've had a few offers for solar installs from large companies who offer to finance 0% for a year + they give me a voucher for the 30% federal rebate and then leave me to get a home equity/other loan after the first year. They gave me rates around 3.75/watt (in Massachusetts). However another company offered me 3.25/watt (for an 8000Kwh install), but they don't offer any financing help.


If I could get 0% for three years with a 3000 dollar downpayment that would be a sweet deal compared to what ive been offered thus far.


I look today at admirals bank and received their rates (anywehere from 5% to 10%) To get the best rates you need a FICO score of over 800. For me this is not happening

If i get a 9% APR my payment will be through the roof. On a 20,000 dollar loan I would pay about 10,000 dollars in interest with the admirals bank option.

There has to be a better solution to this.

[Naptown]

Just be aware that the 0% interest or same as cash options offered by dealers come at a price. One poster said one company was $3.75 a watt and another was less and the lesser cost one did not offer financing.
The one year same as cash will cost the dealer about 5-6% of what the job sells for. So generally they will add a % to cover this cost.
I have seen 5 year no interest loans but the premium is almost 25%. This will drive the cost of a project up substantially as there is not enough profit to absorb a hit like that.
So yes the deals are out there but you will pay for them in a more costly installation.

[Ian S]

Ed Wallace is one of your left wing loony gods? What makes him any more reliable than the barber?

At least he seems to understand what an introductory rate is and what it means for a month-to-month plan. And that transmission and distribution costs are often a separate item.

[Naptown]

In the countless of meetings i have had with solar companies here is my findings!

--term of lease.. some have 10 years, some 15 , most i have seen are 20 year leases.
--Price of lease.. I found a company that will give me a 40-47% savings with no increase in the payment for the term.
--Credit Score required. most companies i spoke with want a 700 credit score. I found a company with No credit check at all.
--roof mount or ground mount? some companies wont get involved in ground mounts.
--Will your system cover 100% of your electric?
I have another post here going into more detail but basically i have a locked in rate of 242.50 a mo. 15 year lease, No upfront money. ground mount system for 22.05 KWH.
My average electric bill is 400-450 per month so for me you can see the savings are pretty extreme, and as electric rates go up over the 15 years My payment will remain the same.
Buying a system for me is just out of the question the system i would require would be @$90,000.

Just priced a 17.5 KW ground mount 200 feet and split into two separate systems (2 buildings) came in at $52,000 The owner happens to be a contractor and has an auger and trencher so he will auger the holes and set posts (14) and dig and backfill the trenches.

[Mitchum]

I live in So. Cal. I'm currently spending about $175/month for electricity and my average energy cost is $0.207/kWh. Tiers 3 and 4 cost $0.26 and $0.28 respectively while tiers 1 and 2 cost $0.15 and $0.17. My goal is to offset enough of my electricity usage to stay comfortably in tier 1 (less than 313 kWh) with the occasional dip into tier 2 (up to 407 kWh).

I've talked to several companies but the one I'm looking at now is associated with SunPower. The total cost for a 5.20 DC-kW system is about $27K. They are offering 12-month, 0% financing on about $8K (which is equal to the 30% tax credit) and a 12-year, 2.99% loan to purchase the remainder of the system (~$19K).

My loan payment would be $154/month for 12 years and the remainder of my electric bill would be about $20/month. So, based on today's electric rates and our average annual electricity usage over the last year, we'd be breaking even. Of course, things will change as electricity rates go up (likely in California), solar system output goes down, and usage rates change.

However, even with all of that, this seems like a no brainer, right? At the end of 12 years, I'll own the system and it's all upside after that.

Does this option make sense? Or would it be better to consider a 20-year lease where the solar company warrants the system instead of me?

EDIT: I'm not sure that I'd buy the system outright for $19K if I had the money. 2.99% is hard to beat. If I had that $19K, I could invest it and as long as I earn more than 3%, I'd be better off with the loan.

[Ian S]

I live in So. Cal. I'm currently spending about $175/month for electricity and my average energy cost is $0.207/kWh. Tiers 3 and 4 cost $0.26 and $0.28 respectively while tiers 1 and 2 cost $0.15 and $0.17. My goal is to offset enough of my electricity usage to stay comfortably in tier 1 (less than 313 kWh) with the occasional dip into tier 2 (up to 407 kWh).

I've talked to several companies but the one I'm looking at now is associated with SunPower. The total cost for a 5.20 DC-kW system is about $27K. They are offering 12-month, 0% financing on about $8K (which is equal to the 30% tax credit) and a 12-year, 2.99% loan to purchase the remainder of the system (~$19K).

My loan payment would be $154/month for 12 years and the remainder of my electric bill would be about $20/month. So, based on today's electric rates and our average annual electricity usage over the last year, we'd be breaking even. Of course, things will change as electricity rates go up (likely in California), solar system output goes down, and usage rates change.

However, even with all of that, this seems like a no brainer, right? At the end of 12 years, I'll own the system and it's all upside after that.

Does this option make sense? Or would it be better to consider a 20-year lease where the solar company warrants the system instead of me?

EDIT: I'm not sure that I'd buy the system outright for $19K if I had the money. 2.99% is hard to beat. If I had that $19K, I could invest it and as long as I earn more than 3%, I'd be better off with the loan.

IMHO, that's a reasonable deal for a Sunpower panel system in southern California. I'd also be willing to bet that your electric rates will increase faster than the Sunpower panel output decreases.

[russ]

EDIT: I'm not sure that I'd buy the system outright for $19K if I had the money. 2.99% is hard to beat. If I had that $19K, I could invest it and as long as I earn more than 3%, I'd be better off with the loan.

Depends on how much you like owing others - I owe no one anything and prefer it that way.

[Mitchum]

Depends on how much you like owing others - I owe no one anything and prefer it that way.

Boone Pickens and Carl Icahn didn't become what they are today by paying cash for everything. They used the leverage of other people's money. Personally, I'd rather own 10% of ten $100K rental houses than 100% of a single $100K rental house because for that same $100K equity/investment I'd have control over $1M in assets and get to benefit from their cash flow, appreciation, depreciation, tax shield, etc. Leverage can be your best friend if used wisely or your worst enemy if not (like racking up credit card bills at high interest).

I'm sure that there is peace of mind knowing that you owe nothing to anyone. Most people will never know that feeling in their lifetimes, so consider yourself lucky. But owing people money isn't the end of the world if done wisely. Judging people that do use leverage makes little sense unless you understand their financial sophistication/situation.

With all of that said, I don't have the $19K so paying for the whole thing isn't an option for me. If I did have that cash lying around, I'd buy more real estate (especially with today's rates and depressed markets), not a solar system... not to be confused with THE Solar System.