Solar City Proposal- Please advise.

[chadd]

I live in Los Angeles California. A friend of a friend proposed this system for me. I can only afford the pay as you go plan. Is it worth it to do? Saving money sounds good to me, am I missing something?

I truly appreciate any help you can provide


Proposed System Size 9.80 kW DC
Annual Production 12,509 kWh
Frame Type Black

UTILITY COSTS BEFORE SOLARCITY
Monthly LADWP Bill (Avg) $437
Annual LADWP Bill $5,248
LADWP Price of Power (Avg) 15.9¢/kWh

UTILITY COSTS AFTER SOLARCITY
New Lower Monthly LADWP Bill (Avg) $263
Annual LADWP Bill $3,159
LADWP Price of Remaining Power (1st Yr Avg) 15.3¢/kWh
LADWP Price of Avoided Power (1st Yr Avg) 16.7¢/kWh
LADWP Bill Savings 40%


Only plan that interests me is this plan as it is no money out of pocket. I dont have any money to pay for a system.


SolarLease® Pay As You Go Plan
SolarCity Price (1st Yr) 11.8¢/kWh
Annual Increase -
Initial Payment (After $250 Discount) $0
$123
Monthly Payment $123
Total Savings (Over 20 Years)$23,765

SITE ASSUMPTIONS
System Size AC 8.54 kW


Premium Service Package
SolarGuard® Monitoring. We continuously monitor your system and will respond in the unlikely event that it underperforms.
Extended Warranty & Repair Service We take care of any repair costs such as the inverter replacement, so you will not have to worry about it.
Insurance Coverage. Our all-inclusive system coverage protects against damage or theft.
Performance Guarantee. We guarantee that your system will produce as much electricity as we promise or we will pay you back!
20 years 20 years Included Included

[Ian S]

From what I can gather, you'll be saving about $50/mo to start. That will likely go higher as your rates climb over the years - I'm assuming you don't have an annual escalator clause in the lease. IMHO, kinda marginal benefit so you have to consider other things. Like the condition of your roof. If you install solar and later have to redo your roof, temporary removal of your solar will add considerably to the cost of your roof repair/replacement. Do you plan to stay in your home for many years? If not, getting a buyer to take over the lease may add complexity to the home sale. Are there conservation measures you can take to reduce your electrical consumption instead? Only you can ultimately decide whether it's a good idea.

[chadd]

From what I can gather, you'll be saving about $50/mo to start. That will likely go higher as your rates climb over the years - I'm assuming you don't have an annual escalator clause in the lease. IMHO, kinda marginal benefit so you have to consider other things. Like the condition of your roof. If you install solar and later have to redo your roof, temporary removal of your solar will add considerably to the cost of your roof repair/replacement. Do you plan to stay in your home for many years? If not, getting a buyer to take over the lease may add complexity to the home sale. Are there conservation measures you can take to reduce your electrical consumption instead? Only you can ultimately decide whether it's a good idea.

No Annual escalator clause. I was going to get my roof done with solar in mind, so they can incorporate the brackets and stuff. We own the home but are upside down and dont plan on leaving anytime soon. I already try to conserve energy as much as possible. I believe its a sound investment for nothing down but is it a good proposal or can I do better from somewhere else?

[Ian S]

No Annual escalator clause. I was going to get my roof done with solar in mind, so they can incorporate the brackets and stuff. We own the home but are upside down and dont plan on leaving anytime soon. I already try to conserve energy as much as possible. I believe its a sound investment for nothing down but is it a good proposal or can I do better from somewhere else?

You could look at a couple other firms: maybe Sunpower, Sungevity, Recsolar or Sunrun. What you want to avoid in leasing is a Joe Blow local installer with their own "lease". Stick to the major players. It makes sense to coordinate the roof redo with the solar installation. Make sure each party knows what the other is going to do and when.

[SoCalsolar]

Extreme power user Chad

Chad you are using an extreme amount of power for LA. over 30000 kWhrs a year. You must have a pool with an inefficient pump, a spare fridge in the garage, and a few plasma TVs. I don't do a lot of work in LADWP but what little I know about them is they have had huge incentives and are now kicking around the idea of a FIT. I think you can do better with either another bid, some conservation or likely both. If you are still looking let me know I'll get some more firm details. The link below is kind of dry but some good info on SC.

http://www.scribd.com/doc/148349266/Solar-City-SCTY-The-Emperor-s-cousins-Have-No-Clothes?fb_action_ids=10151624385706597&fb_action_types=og.likes&fb_source=aggregation&fb_aggregation_id=288381481237582

[chadd]

Hello SoCalsolar,
I have all of those plus three separate ac's that run almost all the time, and an attached gym, lol.

I havent gone through with the contract yet and I would love some more feedback. I will read the info on that link tonight.

Cheers,
Chad

[chadd]

Im about to sign the 20 year lease from solar city. I hope Im making the right decision. A little scared because Im not sure of all the tax, and rebate benefits I am giving up. Hopefully some one will chime in and help me ease my mind.

[Ian S]

Im about to sign the 20 year lease from solar city. I hope Im making the right decision. A little scared because Im not sure of all the tax, and rebate benefits I am giving up. Hopefully some one will chime in and help me ease my mind.

Well you are getting some of the tax and rebate benefits albeit indirectly otherwise your monthly lease payment would be even higher than it is.