SimplyMichael
Posts: 7229
Joined: 1/7/2007 Status: offline
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Solar produces energy during peak demand when it is most expensive to buy or produce. What has made solar a cost effective solution for SOME homeowners is what is clalled "grid tied systems" meaning the homeowners system can flow excess production back onto the utilities grid, using it like a battery. So, they now have the stability of their old utility plus independence. In California, most utilities charge a homeowner more per kw as their usage rises, the opposite of Costco. So someone with low usage might be paying $.13/15 per kw. For them, solar makes little sense. However, many, because of high usage, pay up to $.35 per kw. For them, solar can make sense. Most cities in CA now charge less than $500 for a permit and issue them in one day. Buying verses leasing all depends on how you use your money, both have advantages. CA used to be 90% purchase, its now flipped and most are leased. We can lease a system for less than a high average bill, so no debt, flat rate, and the resale value of a solar home. So, if you play with your money, expect to move in less than 10 years, etc. leasing is the way to go. At the same time the ROI of taking what was money you had to give the utilities and now you can leverage it with a fat tax credit and invest in your home makes sense too. People with CDs earning 2% love buying solar. As to cost of buying, spending $14,000 would get a system that would produce 300/360 kw plus you get at $4,200 tax credit. So if you are in a high tier, that system is producing $1,300 worth of electricity a year. Factor in a 6% rise in rates which is the average, so in 10 years, thats about $18,000 (tax free too!) for a $9,700 investment, plus equity gained in the house (also tax free) due to value of the system. Not bad. Leasing isnt as dramatic a savings but you dont have to spend cash, or incure any debt, just pay less. I just put a 6kw system on a house in San Francisco, thats about $30,000 and they didnt have to lay out any cash or have the debt. However, if you are not in the high tiers, the math isnt as good.
< Message edited by SimplyMichael -- 11/14/2012 7:33:13 AM >
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