Anyone familiar with SolarUniverse ?

[Sam Murdoch]

Solar Universe is a solar panel install franchise that set up residential systems and 20 year lease rates.

What they are telling my sister on Long Island NY is this -

We deal with all renewable energies and will install solar photovoltaic, solar themal, wind, and geothermal technologies. In early 2013, they franchised with Solar Universe, which is the largest national solar company and has been in business since 2008. Through this partnership, we are able to offer our customers the best of both worlds. You get the personal service of a local company, full of employees who live in the area, while also having the guarantee of being backed by a national brand with 24 hour customer service.

My sister can't afford to be taken for a ride and it is difficult to get accurate info. As far as I can tell the savings to her would be almost inconsequential but to her $ 140.00 a year is worth having them install a PV array on her roof.

PLEASE - anyone have any real world experience with this company?

Thanks for any info.

[Jim Matthews]

I sat through a similar pitch with Solar city.

If the net metering agreement doesn't pay the homeowner for power generated in excess of
their consumption, it's no better a deal for me at 41 degrees North.

It's important to get the ROI stated in years based on their consumption averaged over five years or so, in kWH rather than dollars.

The rate of reimbursement may not be constant, over the period of the lease.

For me, the amount of money it could potentially return was more wisely spent on a backup generator.
If the grid goes down, most PV panels aren't sufficient to act as a primary source.

I installed a Natural gas powered generator that automatically starts after an outage longer than a few minutes.

If the product below had been available, that would have been my choice.
http://www.wholesalesolar.com/back-up-power.html

$140 per year in savings isn't enough for me to consider putting holes in my roof.

[David Weaver]

That's quite a bit of leverage for a small gain. I'd imagine they're using a rosy scenario to get $140, too, because...well, why would they pitch anything less than rosy?

Like Jim says, you get some risks, too.

Not the least of which is regulatory risks (the stroke of a pen can change what you get back from the electric company) or surcharges that amount to grid maintenance fees for people who don't use enough net electricity.

I wouldn't do it and take on all of that risk for what is essentially $10 a month.

[Mike Henderson]

Around here, leased solar can make a home difficult to sell. Realtors tell me that what often happens when a house with leased solar goes on the market, the offers will include a clause that the seller buy out the lease before the sale.

Buyers just don't want to be saddled with a long term lease on the house. So one thing I'd check if you have even the slightest chance of selling the house in the next 20 years is what the buyout cost will be.

I haven't run the numbers, but I suspect that you may do better going to a credit union and getting a low interest loan and fully paying for the installation. Of course, if you sell the house, you'll have to pay off the loan at closing but it will be from the proceeds of the house. That way, also, you get the 30% tax credit.

Mike

P.S. I wouldn't do ANY deal with that much risk for $140/year

[Sam Murdoch]

All excellent point Gents. The resell effect is a particularly important consideration. Thanks.

[Shawn Pixley]

I did a fair bit of research on solar options. Others have offered good advive. Since my last thread got out of control, if you want any further insight please PM me.

[Rick Potter]

I would not even consider my solar system if I lived in NY. Way too far north for a reasonable return on investment.

Of course that is just my opinion.

By the way, mine is a 20 year lease, but I bought out the lease immediately. This saved me thousands of bucks on interest, but still leaves me with a maintenance contract for 20 years. They, in turn, immediately sold the contract to a consortium which is now responsible for my maintenance. As I understand it, that is a pretty normal way it is done in CA. It was all in the contract I originally signed, no surprises.

Rick Potter

[Steve Peterson]

Around here, leased solar can make a home difficult to sell. Realtors tell me that what often happens when a house with leased solar goes on the market, the offers will include a clause that the seller buy out the lease before the sale.

Buyers just don't want to be saddled with a long term lease on the house. So one thing I'd check if you have even the slightest chance of selling the house in the next 20 years is what the buyout cost will be.

We looked at a house with leased solar. It turned out that the owner had just installed the system using an option that adds the price into the property tax. The first payment had not come due yet, so the entire cost burden would be on the buyers. It was a 20 year loan at 5% interest and penalties if it was paid off in the first 5 years. I am not sure if the owners took the tax credit with them. It is a good idea to have the sellers buy out the lease. We passed on the house.

Around here (in California with PG&E), electric rates get very expensive if you have a large home. The baseline electric rate is around $0.12. Over the baseline is much higher with rates of around $0.15, $0.20, $0.30, and eventually around $0.40 or more. Solar electric systems would be subtracting the more expensive kwh. The ROI is much better if you are reducing the $0.30 electricity instead of the $0.12 electricity. There is no benefit if you generate excess electricity, although I think you can carry over a balance if you have a surplus one month and a deficit the following month.

Steve

[Roger Feeley]

Sadly, here in Kansas, there isn't much interest in solar. I read once that in California there was a company that would put PVs on your roof and sell you the power. You don't own the panels. You just agree to buy the power from them at a fixed rate for some number of years. That deal, I rather like. This business of leasing the hardware seems like you take all the risk.

[Steve Peterson]

Sadly, here in Kansas, there isn't much interest in solar. I read once that in California there was a company that would put PVs on your roof and sell you the power. You don't own the panels. You just agree to buy the power from them at a fixed rate for some number of years. That deal, I rather like. This business of leasing the hardware seems like you take all the risk.

I think that you pay for the panels for 20 years, then they are yours, assuming that they are still functional after 20 years. I don't know how much money you would save, since you are just trading an electric bill for a different bill.

Steve

[Greg Portland]

I think that you pay for the panels for 20 years, then they are yours, assuming that they are still functional after 20 years. I don't know how much money you would save, since you are just trading an electric bill for a different bill.
No, there are typically 3 options:
1) You buy the entire system outright (up front). They will install whatever system you want (e.g. number of panels, etc.). There is usually a limited service contract (3-5 yrs, etc.)
2) Leased system. You pay X amt/month and they handle all system maintenance & system installation. You get the "free" power. This is typically 2.5-3x the cost of purchasing outright. Not all companies allow you to specify the system you want installed.
3) You pay nothing and they a system of their choice on your roof. You buy your power from them at a fixed rate for the term of the contract (15-20 yrs). Typically if you demand more than the system can provide then you use your local power co... e.g. you'll get 2 bills a month.

There are numerous online resources that will allow you to calculate your potential generating ability @ your location. Do the math and see if it's worth while. Will buying a $15k solar system return a better yield on your money than just sticking that money into a low risk investment?