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Alright folks, it’s here!  A solution that gives access to solar power even to the most cash strapped green minded suburbanites and… it’s brought to you by the very people who delivered to us the sub-rime mortgage debacle.  It’s called a “residential solar lease” which is a “no money down” program that can get you electricity cheaper than what you cash out to PG&E on monthly basis.  Sounds familiar? 

The idea is simple; instead of buying your panels by dishing out thousands of dollars upfront you lease them for “one low monthly fee.”  You win, the solar company wins, environment is happy.   So what’s not to love?  How about a 15 year contract, a 3.9% increased payment every year and our Wall Street friends who have their fingers all over this sweet deal? 

On the surface, this sounds like a viable option for many home owners.  It solves an expensive problem of purchasing the panels outright for around 27,000 dollars (average 1,700 sq. foot home).  It works a bit like a car lease where home owners sign a deal that locks them in for 15 years with the option of extending their lease or buying the panels at the end of the contract.  With a solar lease, your monthly payments can be around $110 which, according to the service providers, will normally be around 15% less than your PG&E bill.  Are you sold yet?

After all, the way these companies and even our media like to paint it – it’s a no brainer deal.  SolarCity, which is based right here in our backyard of Silicon Valley, is one of the very well financed operations that is the first to start aggressively market this contract for home owners all over Bay Area and western states.  SunRun is another similar co. based in San Francisco.

Who really finances these deals?  (more…)

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If going solar would cost you nothing would you consider it?  A few weeks ago I attended a small Green Business Show in San Jose, where our local vendors had a chance to present their services to the community.  These shows are always a great fun because green vendors pack a good punch of specialized knowledge. 

That day, one of my inquisition victims was Jeremy, a solar design consultant with Solar Technologies.  So I started as usual… “How are you”, “How’s business?”, and then “Why in the world don’t we have more solar panels in our neighborhoods?” 

After quite a few minutes of warm exchange of insights we realized we haven’t come up with anything that much revealing except for one awesome fact – affording solar energy is not as hard as most home owners think.  In fact, it makes total financial sense.  We parted by sharing one last sentiment  – most home owners simply have not taken a chance to look at this opportunity. 

So why most of us have not embraced the sun as a source of energy? 

1.  The main reason home owners have not adopted solar technology more widely is because of initial cost.  These days it’s in the range of about $25,000 -$28,000 for an average 1,600 square foot home.  Big price tag indeed. 

2.  A secondary rationale is esthetics – some folks feel that having big solar panels on their roof hurts the curb appeal of the property.  

3.  A third reason most folks have not gone solar could be one or a combination of these simple reasons: they are not sensitive to environmental issues of today’s world or they are simply waiting for a kick in the (more…)

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