Energy painted necklce

Published on August 16th, 2013 | by Nicholas Brown

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75% Of CA Rooftop Solar PV Systems Leased

In California, three-fourths of rooftop photovoltaic solar systems are leased, not purchased outright, according to the research group Climate Policy Initiative (CPI).

Currently the largest fully operational solar facility in California, NRG’s Alpine Solar Generating Facility, a 66-megawatt station in Lancaster, Calif., celebrated its grand opening today with a ribbon-cutting event. (Photo: Business Wire)

Could this be because of attractive leasing schemes? I admit that I used to dislike the idea of leasing anything, but in the case of solar panels, it may be a good idea, as long as the monthly lease payment isn’t too high.

SolarCity has been doing this, and it makes the process of going solar almost a no-brainer if you own your property outright. However, the more speculative you are, the more interested you may be in buying your panels outright, because rental of anything in general tends to cost more in the long run than buying it outright, as you have to pay for the profit margin of the service provider.

Apart from that, it is very difficult for most people to gather the full amount required to go solar if they bought all the necessary equipment outright, so leasing serves a purpose.

Also: “Consumers are used to electricity as a service,” said Uday Varadarajan, senior analyst at Climate Policy Initiative and co-author of the recent study. “The boom in solar leasing shows that policy can support the expansion of renewable generation in a cost-effective way while meeting the needs of consumers.”

Source: PV-Tech




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About the Author

writes on CleanTechnica, Gas2, Kleef&Co, and Green Building Elements. He has a keen interest in physics-intensive topics such as electricity generation, refrigeration and air conditioning technology, energy storage, and geography. His website is: Kompulsa.com.



  • Daniel Ferra

    Why cant a Voting, Tax paying Homeowner, be allowed to participate in the Ca. State mandate of 33% Renewable Energy by 2020, with out third party leasing ? or using our Desert Eco-Systems ?

    In California alone, third-party solar installations account for two-thirds of the residential PV market, which exceeded non-residential for the first time.

    “Examples of how they have been “slowing the process” are:

    (1) Renewable portfolio standards (RPS) which create de facto caps on the deployment of renewable energies. (The Germans don’t have any RPSs. Their FIT program is open ended, the more capacity, the merrier!)

    (2) Net-metering caps. Most states only allow a small percentage of one to two percent of peak load to be net-metered. Net-metering, therefore, will certainly “hold back the clean energy tide.”.

    (3) The third party leasing rent-to-own outfits like Sungevity, but more importantly, Solarcity, which just went public with an IPO, fight tooth and nail to protect scarce capacity carveouts (from the state RPSs) so as to bolster their chosen business models as the expense of all others. The same goes for the utility-scale folks. The in-fighting, due in part to the small de facto caps of the RPSs, have significantly slowed the deployment of renewables in the U.S.

    (4) Most importantly is how we connect distributed renewable energies to the grid in the U.S., the most salient difference between the American net-metering program and the German feed-in tariff is that net-metering is *retail* energy whereas the FIT is *wholesale* energy. Thus, net-metering does little more than offset onsite loads and in the process it shifts the rate burdens of lost customers onto other ratepayers. Those rate burdens also include all of the utility’s overhead as well since compensation is at the retail rate. A FIT, on the other hand, as wholesale energy feeds the energy directly into the electric grid, and because it is must take wholesale energy it must be used first, and in many cases it will off set more expensive energies found on the grid, such as peaker plant power, spinning reserves and so forth saving rate payers money.” Bob Tregilus.

    Third party leasing is fine on the surface and is making a contribution in reducing our fossil fuel consumption, but third party leasers, the Big Boy solar companies that build in the Fragile Desert Eco-Systems, and the Utilities all fight over Renewable Portfolio Standards Pie allowance.

    All Three leagues have a piece of the pie, but there is 4 to 8 teams in each league that want a piece of that carve out money pie, causing huge infighting, and as of right now the homeowner is left out of the ballgame, with no chance of eating the all american pie, why? because we are not represented at the Renewable Portfolio Standard dining hall, with a chair at the pie eating table.

    “The benefits of owning a renewable energy system far outweigh the benefits of a lease or a power purchase agreement (PPA). Under the American Recovery and Reinvestment Act of 2009, homeowners are eligible for a federal personal income tax credit up to 30% of the purchase cost of their renewable energy system, without a maximum limit.** Homeowners can utilize the incentive money in any way they choose. But homeowners that choose to lease their systems turn over their rebates and incentives to the third party lease or PPA companies associated with the solar systems installed on their homes.”

    “The owner of a renewable energy system is also sheltered from rising electricity costs, which have historically increased on average of 3-5% each year. This presents homeowners with opportunities to save money each month on energy and also reduces their reliance on third-party utility companies. By purchasing a renewable energy system with cash or through a loan, a homeowner can completely pay off his or her system and then independently produce clean energy.

    By choosing a lease or a PPA option homeowners are essentially substituting their utility companies with third-party leasing companies. Additionally, homeowners will likely be required to purchase their systems, renew their leases, or have the systems removed from their roof and revert to paying utility rates once their leases have ended.” Charlie Angione.

    “There’s absolutely no such thing as a $0 down solar lease or PPA and here’s why. A requirement of both of these financing programs is that you agree upfront to give the leasing or PPA company your 30% federal tax credit which is worth thousands of dollars as well as any other financial incentives.

    At $5.57 per Watt. a 6 kW solar system would yield a federal tax credit of $10,026!

    With a $0 down loan instead of a lease, you’ll get to keep the 30% federal tax credit as well as all other applicable financial incentives for yourself and you’ll own your solar system instead of renting it, for a much greater return on investment.

    And if you do decide to lease instead of own, good luck ever selling your home with a lease attached to it. What homebuyer will want to purchase your home and assume your remaining lease payments on a used solar system on your roof, when they can buy and own a brand new system for thousands less.” Ray Boggs

    The Feed in Tariff is a policy mechanism designed to accelerate investment in Renewable Energy, the California FiT allows eligible customers generators to enter into 10- 15- 20- year contracts with their utility company to sell the electricity produced by renewable energy, and guarantees that anyone who generates electricity from R E source, whether homeowner, small business, or large utility, is able to sell that electricity. It is mandated by the State to produce 33% R E by 2020.

    FIT policies can be implemented to support all renewable technologies including:
    Wind
    Photovoltaics (PV)
    Solar thermal
    Geothermal
    Biogas
    Biomass
    Fuel cells
    Tidal and wave power.

    California law does not allow Homeowners to oversize their Renewable Energy systems.

    Allowing homeowners to oversize their Renewable Energy systems, is a true capitalistic tool, that will give us the potential democratize our energy generation and transform millions of homes and small business into energy generators, during Sandy, Solar homes where not utilized to their full potential, because there was no disconnect and or transfer switch, to turn off incoming grid and start in home Solar power. how comforting it would be, to have mandatory transfer switches on all residential and small business renewable energy installations.

    The state currently produces about 71% of the electricity it consumes, while it imports 8% from the Pacific Northwest and 21% from the Southwest.

    Natural gas was burned to make 45.3% of California’s power generated in-state in 2011. Nuclear power from Diablo Canyon in San Luis Obispo County accounted for 9.15%, large hydropower 18.3%, renewable 16.6% and coal 1.6%.

    We need a National Feed in Tariff, for Renewable Energy, with laws that level the playing field, this petition starts with homeowners in California.

    Japan, Germany, and our state of Hawaii, will pay residents between 13 – 37 cents per kilowatt hour, here in California they will pay a commercial FiT in a few counties at 17 cents per kilowatt hour, No Residential FiT and they wont let us oversize our Residential Renewable Energy systems.

    Campaign to allow Californian residents to sell electricity obtained by renewable energy for a fair pro-business market price. Will you read, sign, and share this petition?

    http://signon.org/sign/let-california-home-owners

  • http://www.solarlease.com Ray Boggs

    Solar leasing is one of the absolute worst ways to finance the rental of a solar system. First of all you have to forfeit the 30% federal tax credit which is worth about $10,000.00 on a typical 6 kW system at the leasing company’s much higher pricing. You’ll also have to forfeit any cash rebate. The leasing companies will tell you that they will apply the tax credit and cash rebate to the system price so that you’ll lower the acquisition cost but the leasing company’s pricing is so over inflated that the tax credit and rebate as large as they are will hardly make a dent in their price.

    Instead of an expensive solar lease or PPA, consumers are now buying their systems with $0 down solar loans that require no equity, that offer tax deductible interest and allows you to keep the 30% federal tax credit and any other incentives and own your solar system for a much greater return on investment than any lease or PPA.

    And good luck ever selling your home with a lease attached to it. What homebuyer will want to assume your lease payments on a used system, when they can buy and own a new state of the art system for less than $3.15 a watt, installed, before incentives? Don’t take my word for it, search the Internet and you’ll find many articles concerning homeowners who are having difficulty selling because they have solar leases attached to their homes.

  • http://www.solarlease.com Ray Boggs

    rental of a solar system. First of all you have to forfeit the 30% federal tax credit which is worth about $10,000.00 on a typical 6 kW system at the leasing company’s much higher pricing. You’ll also have to forfeit any cash rebate. The leasing companies will tell you that they will apply the tax credit and cash rebate to the system price so that you’ll lower the acquisition cost but the leasing company’s pricing is so over inflated that the tax credit and rebate as large as they are will hardly make a dent in their price.

    Instead of an expensive solar lease or PPA, consumers are now buying their systems with $0 down solar loans that require no equity, that offer tax deductible interest and allows you to keep the 30% federal tax credit and any other incentives and own your solar system for a much greater return on investment than any lease or PPA.

    And good luck ever selling your home with a lease attached to it. What homebuyer will want to assume your lease payments on a used system, when they can buy and own a new state of the art system for less than $3.15 a watt, installed, before incentives? Don’t take my word for it, search the Internet and you’ll find many articles concerning homeowners who are having difficulty selling because they have solar leases attached to their homes. Here’s a funny video that illustrates the difficulties that homeowners are having when attempting to sell their homes with leases attached to them: http://vimeo.com/70888784

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