How Solar Leases Mask High Prices

[heliopowerPVsupply]

How Solar Leases Mask High Prices

January 27, 2012 in HelioPower, Home Solar Power, Solar, Solar Power Systems, solar financing | 1 comment

What You Need To Know When Shopping For a Home Solar System

I consider myself among the lucky. I had the good fortune to land a job in solar sales way back in 2007. Back then, times were simpler. The majority of my customers paid for their systems with cash or HELOCS (home equity lines of credit). PPAs (power purchase agreements) and leases were the realm of multi-megawatt commercial and utility installations and nothing of the sort was available for residential consumers.

In the

[KRenn]

Meh, this article is kind of goofy in that it seems to imply that every leasing product is structured in the exact same fashion. Sun Power probably has the most expensive panels out there, but the cheapest lease program. Other than looking at the price per watt, the consumer would be better off comparing lease prices vs various competitors. If you have a monthly lease, then you can take a look at a certain size, say 5 kilowatts and find out that Company A charges $60 a month with a 3% annual escalator, Company B charges $68 a month with no annual escalator and Company C charges $90 a month with no annual escalator, all for the same size system with varying equipment.

Trying to get tricky and figure out the price per watt will only leave the average person confused. Better yet, look at what your overall commitment is going to be, whether prepaid or monthly. Prepaid is self explanatory as there is only one cost associated with the system. For monthly, figure out what your payments are each month, multiply them out by 10-20 years and then compare apples to apples and oranges to oranges with other quotes.


Also, always be aware of escalators. Companies often try to bury them deep in paperwork, but an escalator of 3% can make a tremendous difference in the cost over the life of the lease. A 3% annual escalator on a $100 a month lease payment will rise to $135 a month in 10 years, a difference of $420 a year which can make a great deal not look so awesome down the road. Additionally, common sense would tell you that getting a future home-buyer to take over a lease that will only continue to increase in price vs a fixed one is going to be markedly more difficult.................

[Sunking]

January 27, 2012 in HelioPower, Home Solar Power, Solar, Solar Power Systems, solar financing | 1 comment

I consider myself among the lucky. I had the good fortune to land a job in solar sales way back in 2007. Back then, times were simpler.

Yes you were lucky and had good timing. Time to get out as you have plucked the pigeons, and no more left to pluck. Cash out NOW.

[KRenn]

Yes you were lucky and had good timing. Time to get out as you have plucked the pigeons, and no more left to pluck. Cash out NOW.

Not really. If Obama is re-elected, the EPA's new carbon mandates will stand and will have a huge effect on the cost of electricity all over the US, essentially forcing the shutdown of many coal-powered plants and a costly transition to natural gas, leading to rate hikes like we've seen in Kentucky to pay for the transition, passed down to the end-user. Basically, this can only help solar as it will speed up the ROI due to the increased price of electricity.

[Sunking]

Not really. If Obama is re-elected, the EPA's new carbon mandates will stand and will have a huge effect on the cost of electricity all over the US, essentially forcing the shutdown of many coal-powered plants and a costly transition to natural gas, leading to rate hikes like we've seen in Kentucky to pay for the transition, passed down to the end-user. Basically, this can only help solar as it will speed up the ROI due to the increased price of electricity.

Do you have any idea of how [...] that is?

[KRenn]

Do you have any idea of how [...] that is?

The new EPA regulations or what???? Essentially they're creating an end-game to the construction of new coal plants. Natural gas is at a historic low but for companies to change over, there will be costs associated with that, those costs will be passed down to the end-user, as electric costs go up, solar becomes more viable, not sure what is so strange about that.


Take a look at the situation by Kentucky Power Co......30% rate hike as a result of their response to various EPA regulations.

http://dailyindependent.com/local/x1612759992/Kentucky-Power-announces-1-billion-retrofit/print

Or the many plants closing down as a result of those same regulations.

http://thenewamerican.com/tech-mainmenu-30/energy/10253-dozens-of-power-plants-closing-due-to-new-epa-rules

[Sunking]

The new EPA

Nothing new about them [ ... ]. They have earned their name; Employment Prevention Agency.

[Naptown]

i wonder how they feel about Thorium fluoride reactors. And even more important why is the government not developing these.
Much safer, less waste, can't produce weapons from the waste. My last statement may have answered the question.

[Sunking]

i wonder how they feel about Thorium fluoride reactors. And even more important why is the government not developing these.

err what makes you think they are not developing it?

First one that was built and put into test operation was 1946. It was to be installed in a aircraft bomber. It was a very small 1.5 Mw reactor to be used as a jet engine, and it worked just like a jet engine of today. Outside air pulled in through a compressor, heated by the reactor (instead of kerosene), and hot exhaust at the rear creating thrust.

Oak Ridge has built three of them since 1960. One is currently being built by the DOD, DOE, and RUS in Tennessee. The excess heat will be used make gasoline, diesel, and jet fuel from coal to be used by the military. The electric power generated will be sold on the market by the TVA electric coop.

[KRenn]

i wonder how they feel about Thorium fluoride reactors. And even more important why is the government not developing these.
Much safer, less waste, can't produce weapons from the waste. My last statement may have answered the question.

DING DING DING, we have a winner. Oh and the US, even with one of the world's largest thorium reserves, seems more than content to let China and India take the lead on developing and using thorium nuclear technology. Properly harnessed thorium technology would lead to a tremendous drop in the cost of electricity in this country and we can't have that now, can we?

[Sunking]

Oh and the US, even with one of the world's largest thorium reserves, seems more than content to let China and India take the lead on developing and using thorium nuclear technology. Properly harnessed thorium technology would lead to a tremendous drop in the cost of electricity in this country and we can't have that now, can we?

Not so sure you can say China is leading the development as the USA has been making and developing them since 1946. Where China and India does lead the way is they are going full blast putting Thorium reactors into commercial service as we speak using the technology we developed.

When it comes right down to is Americans are pretty ignorant and uneducated, which allows environmental minority interest dictate energy policies with propaganda and false information. Today that would be our current executive administration in the White House he!! bent on destroying the US economy and leadership role. Most of the US public does not know we have over 1 million years of dirt cheap fuel.

[russ]

Not so sure you can say China is leading the development as the USA has been making and developing them since 1946. Where China and India does lead the way is they are going full blast putting Thorium reactors into commercial service as we speak using the technology we developed.

When it comes right down to is Americans are pretty ignorant and uneducated, which allows environmental minority interest dictate energy policies with propaganda and false information. Today that would be our current executive administration in the White House he!! bent on destroying the US economy and leadership role. Most of the US public does not know we have over 1 million years of dirt cheap fuel.

Unfortunately true - the loud minority (a small one) makes so much noise the average person thinks that group knows something when the truth is that most of the time they are just parroting a buzz word they have heard.

[Elkhornsun]

Mod note - political comments removed

[russ]

Mod note - Please drop the political comments. I can not respond to disinformation as I would like so I have deleted the post.