Tag Archives: lease

Thinking of Leasing a Solar PV System for your Home?

Data from the California Solar Initiative (CSI) program, the largest and longest-running residential and commercial solar incentive program in the United States, show that third-party-owned residential installations grew rapidly as the solar industry created and refined the third-party ownership model. In 2012 and 2013, more than two-thirds of residential installations in the CSI program were third-party owned. Industry reports have indicated that the growth in popularity of third-party-owned residential solar PV systems is occurring in other states as well.

Will a leased PV solar system add value to your home?  Contact the appraisers at www.scappraisals.com for your value questions.  They are the forerunners in green property appraisals.

How the Third-Party Ownership Model Works

 

Homeowners can contract with a company—sometimes called a solar leasing company, solar finance company, or third-party ownership company—to have a solar PV system installed on their rooftop (or elsewhere on their property). Depending on the agreement, the solar leasing company will often be responsible for financing, permitting, designing, installing, and maintaining the PV system. The contract between the homeowner and solar leasing company is typically structured in one of two ways:

 

  1. PPA option: the homeowner buys all of the electricity produced by the solar PV system at an agreed-upon price (or set of prices) through what is known as a power purchase agreement (PPA). The PPA prices are usually lower than or competitive with the homeowner’s local electric utility rate. PPAs are usually longer-term contracts with terms of up to 20 years.
  2. Lease option: the homeowner makes pre-established monthly payments to the solar leasing company. The payment amount is not tied to the PV system’s actual output, but it is calculated to be competitive with the homeowner’s existing electric bill.

 

Both of these contract options will usually offer a buyout option at the end of the contract term or during certain points over the contract period that would allow the homeowner to purchase and own the PV system.

Benefits:  The homeowner:

 

  • Can install a PV system without paying large upfront costs or expending time and effort to knowledgeably purchase and arrange installation of the system.
  • Will not have to operate or maintain the PV system if these responsibilities are included in the service agreement.
  • Can lock in long-term costs for electricity, which could be a major benefit if the homeowner expects electricity prices to rise in the future.

Challenges and Limitations

 

  • The homeowner may pay for the convenience of having someone else build and maintain the system by having to share some of the available incentives with the solar leasing company, although this may be offset by the convenience of the arrangement and the potential reduced cost structure offered by the solar leasing company.
  • The third-party ownership option is not consistently available throughout the country. According to the Database of State Incentives for Renewables & Efficiency (DSIRE), third-party solar PV PPAs are currently allowed or in use in all or portions of at least 22 states and the District of Columbia.

read more at: http://www.homeenergy.org/show/blog/id/519/nav/blog

Disclaimer: for information and entertainment purposes only

 

Cheap leases offered to spur electric car sales

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DETROIT—Auto companies are hoping lower lease prices can put a charge into sluggish sales of electric cars.Honda announced Thursday that it’s slashing the monthly lease cost of its tiny Fit EV by one third, following similar moves by other automakers. Honda also is throwing in other goodies, such as a free home charging station and unlimited mileage.

Electric vehicles once were billed as the answer to high gas prices and dependence on foreign oil. But U.S. oil production is rising, gas supplies are abundant and pump prices have remained relatively stable the past three years, making consumers reluctant to switch from internal combustion engines. There’s also the worry that an electric car could run out of juice on longer trips.

As a result, electric car sales, while growing, are only a tiny fraction of overall U.S. auto sales. Automakers sold just over 12,000 pure-electric vehicles in the U.S. through April, according to Ward’s AutoInfoBank and Tesla Motors. That’s less than 1 percent of the 4.97 million cars and trucks sold during the same period.

Still, automakers have rolled out new electric models, increasing the competitive pressure.

Automakers generally lose money on electric cars because the technology is so new and the batteries are costly. But they have been subsidizing sales by lowering prices. Chrysler CEO Sergio Marchionne said earlier this year that his company will lose $10,000 on every Fiat 500 electric vehicle it sells. Others have reported similar losses.

With the Fit EV, Honda is offering a $259 per month lease, down $130 from the initial $389 per month offer when the car went on sale in July of last year. The reduced lease price starts June 1 and will apply to existing EV leases, Honda said.

The three-year lease requires no money down and comes with unlimited mileage, free routine maintenance, collision insurance coverage and a free 240-volt home charging station, the company said Thursday. The charging station normally costs $995. The car buyer must take care of installation.

Read more: Cheap leases offered to spur electric car sales – The Denver Post http://www.denverpost.com/businessbreakingnews/ci_23353418/cheap-leases-offered-spur-electric-car-sales#ixzz2UnfbGRic

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Solar Panel Lease – Read About One Company’s Program for Homeowners

San Diego-based OneRoof Energy is making a bid for a piece of the booming market for rooftop-solar leases on homes.

Backed by $50 million in recent financing, the solar startup is approaching homeowners as they build or replace a roof, offering thin solar panels that double as roofing tiles — an aesthetic that blends in with nonsolar houses.

By forging a partnership with an established roofing company, OneRoof intends to compete for market share with pioneers like SolarCity and SunRun that lease photovoltaic systems back to the customer or sell rooftop-generated power under a purchase agreement.

So-called “third-party” solar companies, which own thousands upon thousands of rooftop arrays, are thriving based on a curious anomaly of government incentives for rooftop solar.

Corporations are much better positioned than most individuals to collect and repackage government incentives, including federal investment tax credits and deductions for accelerated depreciation.

“It has been structured through the tax code that it’s more efficient for a third party to monetize those tax credits than a homeowner,” explained David Field, CEO of OneRoof.

Read more: http://www.utsandiego.com/news/2012/mar/06/tp-ready-to-harness-the-sun/

Disclaimer: for information and entertainment purposes only