{"id":516254,"date":"2010-04-05T14:12:51","date_gmt":"2010-04-05T18:12:51","guid":{"rendered":"http:\/\/www.greenrightnow.com\/?p=10205"},"modified":"2010-04-05T14:12:51","modified_gmt":"2010-04-05T18:12:51","slug":"solar-panel-leasing-can-save-homeowners-money-immediately","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/516254","title":{"rendered":"Solar panel leasing can save homeowners money immediately"},"content":{"rendered":"

By Clint Williams<\/a>
\nGreen Right Now<\/strong><\/p>\n

It didn\u2019t make sense, really, to spend 44 cents each month to mail Southern California Edison a check for 92 cents. So the Wyman’s of Orange, Calif., decided to pre-pay their 2010 electric bill, sending the utility company a check for $12.<\/p>\n

Consider Ray Wyman, 54, a true believer in having solar panels installed on the roof.<\/p>\n

\u201cThere is the instant reward of reducing the cost of energy and fixing your energy costs,\u201d says Wyman, a marketing communications consultant.<\/p>\n

And, Wyman notes, with no out-of-pocket expenses, the savings begin from day one.<\/p>\n

The Wyman household is one of about 6,000 in five states \u2013 Arizona, California, Colorado, Oregon and, most recently, Texas \u2013 that lease photovoltaic solar panel systems through SolarCity<\/a> <\/strong>based in Foster City, Calif., in the Bay Area.<\/p>\n

SolarCity provides one-stop shopping for solar power system design, financing, installation, monitoring and maintenance.<\/p>\n

\"SolarCity<\/p>\n

SolarCity converted eBay to solar power in 2008. (Photo: SolarCity.)<\/p>\n<\/div>\n

\u201cThere are other companies that design and install systems and other companies that finance systems, but we\u2019re the only one that does it all,\u201d says company spokesman Jonathan Bass.<\/p>\n

SolarCity, known for having installed a 650 kilowatt commercial solar system at eBay’s offices in San Jose, also sells solar power systems and offers side-by-side cost-benefit analysis for those considering a residential setup, Bass says.<\/p>\n

Despite an array of federal and state tax credits and utility rebates, an installed solar power rooftop system still costs as much as a compact car. A 5 kW system costs about $35,000, according to a breakdown by the Salt River Project, a major Arizona electric utility. The SRP rebate is $13,500, the Arizona tax credit is $1,000 and the federal tax credit is $6,450.<\/p>\n

That brings the net cost of a system to just over $14,000, which means homeowners still have to write a big check to get started on solar power and wait for the tax credit and rebate money to come back to them.<\/p>\n

\u201cSolar is a great investment as a purchase,\u201d Bass says, adding that after the payback period of four to 10 years the homeowner is looking at years of basically free electricity.<\/p>\n

But that first check is a big hurdle for many people.<\/p>\n

\u201cBuying panels was never financially feasible,\u201d says Len Gutman of Phoenix, who leases a system from SolarCity. \u201cIf we were buying this same system, we would have had to finance $50,000.\u201d<\/p>\n

Gutman\u2019s lease payments are $140 a month. The panels provide all the power the family needs in the winter for their 2,220 square foot home, but the Gutmans buy additional\u00a0 electricity during the summer.<\/p>\n

\"This<\/p>\n

This chart shows how a solar panel lease plus electric bill can cost less than one's old electric bill. (Image: SolarCity.)<\/p>\n<\/div>\n

\u201cWe like it cool and it\u2019s hot here,\u201d Gutman says, chuckling.<\/p>\n

Still, the combined cost of the lease and power bill is less than the old power bill.<\/p>\n

\u201cWe\u2019ve actually made money every month,\u201d Gutman says. \u201cIt\u2019s not a lot of money, but it\u2019s $10, $20, $40 a month going back into our pockets.\u201d<\/p>\n

Wyman\u2019s $150 monthly electric bill for his 2,000 square foot, three-bedroom home has been replaced by a $95 lease payment and the 92-cent monthly charge to run the power line to the house. More importantly, Wyman says, his electricity costs are fixed for the next 15 years.<\/p>\n

\u201cI believe there is going to be energy inflation in very short order,\u201d he says. \u201cI call this the green hedge \u2013 your hedge against inflation.\u201d<\/p>\n

Both men note that the savings are immediate because there is no money down with the lease. The tax credits and utility company rebates are funneled to SolarCity. And, if something goes haywire \u2013 as it did after just a couple of month with Wyman\u2019s system \u2013 SolarCity comes out and fixes it.<\/p>\n

RESOURCES:<\/strong><\/p>\n