[R254]Residential Solar Energy System

The American homeowner has waited 76 years, but an innovative company has finally found an alternative. The sun supplies enough energy to earth in one hour to supply all of our energy needs for an entire year. But currently solar energy supplies less than one half of 1 percent of our residential energy requirements. Why?

Previously, solar generated electricity has been too expensive and too complex. To rethink solar generated electricity, U.S. residents had to invest their children's college fund. The average customer pays $40,000 to switch their home to solar power; plus customer are responsible for the installation, maintaining the solar panels & related materials, taking out permits. Who has the skills (or the money) for this?

A innovative company has a new strategy to restrict all of the problematic barriers to solar generated electricity. This solar company offers: No solar equipment purchase. No installation investment. No maintenance costs. No permit head aches. No performance troubles. No rate increases. No way!

When we first heard about this renewable energy idea, we were so interested that we investigated this solar company. It seemed almost crazy. Like most innovations, their strategy is so straight forward it makes you think why no body thought of it before.

You simply pay this green company the same rate per kilowatt for energy that you used to send to your utility company, but it gets even better. This innovator will lock-in that your rate per kilowatt for up to 25 yrs. With constantly rising power rates, this gives consumers comfort and can equal to significant financial incentives. This solar rental company even have a solar savings tool on their website that shows how much you may recoup over 1, 5, and 25 yrs. Personally, we saved over $18,000 and by using clean energy; it is the equivalent of taking 27 trucks off the road or planting four hundred trees. Fantastic!

Previously, ?switching to renewable energy? implied expensive solar equipment. Today, you get to feel good about helping the planet but most ?renewable energy? products are more hard to obtain than their ?dirty? counterparts. With this green company, utilizing renewable solar power can actually be really easy to do.

Renting solar energy equipment is all made possible by grid connection laws that require the utility companies to allow solar generated electricity to flow into the grid and then allow the consumer to take that same amount of electricity off of the grid at no cost to the consumer. Metaphorically speaking, the grid becomes a huge battery. The electricity meter spins in the opposite direction during the day when the sun is out and in the positive direction at night when the consumer pulls that energy back off the grid.

These net-metering laws were passed because residential energy production was the number one cause of environmental distruction in the United States last year. There are still nine states that have not drafted net-metering laws.

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Customers may be still a little unsure about this new concept. We asked some hard questions.

Detailed Common Questions:

Q. How can this green company afford to install this complete home solar energy system with no upfront cost to the homeowner?
A. Because the company handles everything; from the solar grade silicon to the final installation, they create savings at each stage of the production. Plus they are building the largest manufacturing plant for solar energy in the world. When you combine their vertical integration with our economies of scale, they are able to produce the solar equipment at half the cost of the competitors.

Q. This sounds like this green company required a large amount of capitol to to get rolling?
A. $650 million.

Q. When does the customer pay the security deposit for the solar rental?
A. They do not pay the security deposit until after the solar engineer comes to the site and designs the system. They will show you exactly what the system will look like and only after the customer agrees to the design does the customer pay the deposit. The deposit is 100% refundable at the end of the rental term.

Q. How long of a contract does the homeowner have to sign?
A. One year, five years, or twenty-five years. Over 80% of the residential solar energy customers sign the 25 year rental agreement because that locks in the rental fee for the entire term of the contract. If the customer signs a shorter contract, the rate is recalculated according to current energy rates at the end of the term.

Q. What happens if the homeowner signs a 25 year contract and they want to sell their house in 10 years?
A. The homeowner has three selections. First, they can ask the company to move the system to their new house. The company will do this one time for free. Second, the homeowner can transfer the contract to the new owner. This can potentially add value to the existing house because if energy rates keep increasing and they are 40% higher in 10 years, then the buyer would get a 40% decrease on their energy bill because of the existing solar rental agreement. The final option is that the customer can contact the company, tell them that they want to end the contract. The company will remove the solar unit. With this third option, the customer will forfeit their security deposit.

Q. So is the customer's security deposit the most they have at risk? Is that the only risk?
A. Obviously if the customer does not pay their bill there will be late charges or if one of our franchisees comes out to their house to remove the unit and they refuse to allow them access, the company will have to take other actions to recover their residential solar energy sytem.

Q. Okay. A customer wants a residential solar energy system on their house. How does it work? What is the process?
A. The homeowner signs up online and one of the Associates will help them each step of the way. There are some simple questions to answer about the amount of shade, the direction of the roof line, the energy consumption, etc. After the customer signs the contract, a solar engineer will come to the site to design the residential solar energy system. This last step will not happen until the company has the solar system ready to install.

Q. What if the homeowner does not like the solar system design? Are they still obligated to the agreement?
A. No. They can back out of the agreement with no penalty. As mentioned, the customer doesn't pay the deposit until after you approve the residential solar energy system design.

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Q. Okay. The customer likes the design. They want the solar energy system. What's next?
A. The installation usually takes about a day. The permit process can take as much as 90 days depending on how cooperative the local utility is, but they company handles the entire installation and the customer doesn't pay anything until the residential solar energy unit is producing renewable, clean solar electricity for their home.

Q. What exactly does the homeowner pay? How is solar rental fee calculated?
A. The customer pays a rental for the amount of power that their solar system produces. The customer is creating their own energy from the sun. The solar installer will go through the resident's past energy bills. If the customer is interested, the solar installer will walk through the house and show how to save energy.

Taking all this into consideration, solar installer will calculate how much energy the homeowner's personal residential solar energy unit will need to produce in order to supply energy for all of the homeowner's needs. They will then design the residential solar energy system to produce that energy. The customer simply pays the rate per kilowatt hour that is on the rental contract for all the green, renewable solar energy that the residential solar energy system produces.

Q. Does the company have any hidden expenses or maintenance fees?
A. Nothing is added. The company has no utility connection fees or any of those "addition" charges that other companies like to tack on. The government is not trying to charge for the sun's energy - yet.

Q. So, will the homeowner have two invoices; one from the solar rental company and one from the regular energy company?
A. Yes. The customer will pay the company a rental fee for the solar system that will produce the electricity and the homeowner will pay the utility company the same connection fees that they pay now, plus the customer will pay the utility company for any extra electricity the customer uses that exceeds the contract.

Q. What does that mean; exceeds the contract?
A. At the end of the year, the customer used more energy than what was contracted for and the residential solar energy system produced for them, then the customer would need to pay the utility company for the excess energy that was used and not generated by the solar system.

Q. And what rate would the customer pay for that energy?
A. The customer would pay the utility company's current rates. Sorry, this green company cannot do anything about the utility company's rates. But look at it this way, the customer will be using a lot less of that dirty energy and the solar panels the customer rents will always self-produce the homeowner's energy at the same guaranteed low rate. No hassles. If a customer reads about rising energy prices, they can smile knowing that their solar generated electricity costs are guaranteed for the length of your contract.

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Q. In the first year, the homeowner is just paying the same rate that they were paying previously, right?
A. Often rate is actually less. The company bases the rates on the yearly average for the rate charged by their energy provider. So, the company bases their rates on the prior year averaged charged by the utility. Since energy rates tend to go up each year, many customer will save money on their first bill. This will only increase as the years tick along. The company provides a calculator on their website that will tell specifically what they will save with their particular utility and their monthly usage. Many customers save over $10,000 just by upgrading to solar.

See for more details. The company's game plan is to help people decide to self-produce energy and stop being part of the problem.

Q. What would a customer's monthly rental fee look like?
A. Let's say the customer agreed to the company installing a system to self-produce 12,000 kilowatt hours of electricity for the year. The customer's contract rate is 10 cents a kilowatt hour. The total bill for the year would be $1,200 for the use of the solar equipment. With most electricity companies, the homeowner has some months that are higher and some lower. It is hard to budget. This innovator has a system called "Even Pay" where the customer simply pays a given dollar amount each a month every month.

Q. What happens if the customer contracts for a certain amount of kilowatt hours and then their kids go off to school?
A. The residential solar energy system is remotely monitored automatically every day. If the solar engineer notices a usage drop, they will contact the customer to see if this is a permanent situation or just a short-term fluctuation. If this will be a permanent decrease in energy usage, the solar technician will come out and remove the proper number of panels and readjust the contract.

Q. And how much will maintenance cost me?
A. Nothing. This innovator makes solar approachable.

Q. What happens if something need to be fixed?
A. The company has a complete system support guarantee. If the residential solar energy unit ever stops working, it will be fixed for free. The customer has no rental charges until the solar energy system is working again. This makes the company motivated to get it fixed fast.

Q. What if my neighbor drops a tree on one of the solar panels?
A. It is just like renting an appliance. The customer is responsible for returning the residential solar energy system in working order. The company recommends that customers contact their homeowners insurance to ensure that the solar system is covered under their policy.

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Q. Would the customer save money in the long run if they just bought a residential solar energy system?
A. Not really. Renting solar systems can save a significant amount of money, and it protects the homeowner from the large upfront investment. If the customer buys solar panels and invest $40,000, they are committed to that technology for many years. If something is invented, the homeowner can't switch because their $40,000 would be wasted.

If the customer breaks their contract with the solar rental company, they will lose their security deposit, usually $500. The customer can simply contact the company and tell then that they want to cancel the contract. The customer would lose the security deposit. But that is a lot better than losing a lot of money.

Q. Is the residential solar energy manufacturing plant completed yet?
A. No. The first solar systems will be ready to install in the middle of 2008.

Q. So why would a homeowner reserve a solar unit now?
A. First ? the customer lock in the even pay rate as soon as they reserve a system. With the way energy rates are increasing, this could save the homeowner a lot of money. Second ? the customer reserves their installation position. This means they can get their residential solar energy system sooner once the manufacturing plant is producing. Third - it also helps the company show the market how many homeowners will upgrade to solar if an offer that makes sense on every level is presented.

Q. What happens if the customers signs the contract and the manufacturing plant is never completed?
A. The contract would be void and canceled. This innovator understands that this is a new concept. The big power and oil companies have been saying for years that solar energy has no market. They have a vested interest in making that claim. This company is proving them wrong. They feel compelled. The risks are too big if we don't change our course.

The only way that change is going to happen is if we create a better vision. For that vision to be sustainable, it needs to make monetary sense for all people involved. Electricity production is the number one source of pollution in America. This innovator is not asking anyone to sacrifice anything. In fact, homeowners can save a significant amounts of money by upgrading their homes to solar energy. When was the last time a person could save money and do the right thing?

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