"Cheap" / "free" Whole House solar solution?

[drozwood90]

http://renu.citizenre.com/

I found this a few days ago. Carefully read everything that they have on the webpage. I think it's a neat idea.

It's kind if a rental of the solar panels. The thing that bothers me is I can't quite figure out the economical model behind it. Based on rough numbers, if the system (purchased) costs $16,000...or lets be generous as they appear to be making their OWN solar panels...so...what's cost...$10K? So, $10,000/<fill in your electric bill here>/12 months/year = time before they make a dime from me. That's also assuming that they do not have to fix anything, there is nothing faulty, etc.

So, for me:
(10k/117)/12 = over 7 years before they make dime one from me. So, I can't seem to wrap my head around that they are willing to absorb that much risk in this.

What are your thoughts on this?

--Dan

 

[WayneW]

It looks like they charge a fixed monthly rent, but I didn't see where they give details about how that rent is calculated.

 

[AnthonyZ]

If you dig further you'll find that they don't just "rent" the system. They also get the credits offered by the feds (scheduled to phase out by the end of this year, $2000), the state or municipality (varies) and electrical providers (ongoing "buy back", varies by company or coop). Also, take note that they are yet to have installed a single system (save for maybe Ed Begley Jr.).

 

[politics123]

If you dig further you'll find that they don't just "rent" the system. They also get the credits offered by the feds (scheduled to phase out by the end of this year, $2000), the state or municipality (varies) and electrical providers (ongoing "buy back", varies by company or coop). Also, take note that they are yet to have installed a single system (save for maybe Ed Begley Jr.).

I signed up both as a participant and as a "reseller." The general advice they gave me was "if you're going to get solar anyway, do it on your own now, but if not, you can sign up with us and when we get to your state we'll install one for you."

Their original model was to charge you for the power that the panels produced. Alas, they started to look like a utility company (hello, regulation!), and changed the model to where they just rent you the panels for a fixed fee (about equal to your monthly power bill)

The economic model is pretty simple --> mass produce (wholesale costs), keep install costs low, receive tax credits, and then earn a stream of payments (the rent you pay) on their investment. As long as the return that you produce exceeds the capital costs for the hardware + installation, they make money.

Upsides
1) "free" solar installation
2) locked in energy prices for a period of time of your choosing
3) No sleeze

Downsides
1) You pay "rent" regardless of power produced (just like if you bought a solar panel... there's no guarantee of sunny weather!)
2) You get their equipment. That means you don't get a lot of choice on configuration

There isn't any risk putting yourself on the waiting list (if you want to do so, send me a PM and I'll take care of you). They (or possibly, me) will call and get some specifics about your property --> location, exposure, trees, roof space, state, etc. And then add it to the big computer. There's no obligation until someone comes out to do a site survey (which is likely to be a couple of years out)

I may not wait for them to get to my state. I've been shopping around for a smart grid-tied inverter (with auto-disconnect and battery backup) Especially if congress gets off its a-- and improves the subsidies. I love politics (see my name!) -- you can subsidize oil companies all you want ("it helps keep gas prices, achem, low") but if you try to subsidize an alternative energy solution, it is wasteful use of the taxpayers money.