Meandering
Elite Member
- Joined
- Feb 26, 2006
- Professional Status
- Real Estate Agent or Broker
- State
- Pennsylvania
As I said, it is the savings in the utility bill by virtue of having the system.
2,000sf house: average monthly electric bill $175.
Bill with system (excluding any net-metering payment for excess energy) $85.
Net savings = $90/month. I "earn" that savings because I'm not buying as much energy from the utility company. If they pay me $100 on top of that for excess energy they buy from me, I don't consider that in my model.
That "savings" ($90/month) is the income used in the model. Only the savings. I've said this repeatedly, and you and I have discussed this often (but not recently... except for now) on this forum.
Again D,
That $90 is paid to you through some program. While I realize California has different laws than many places for this issue, You absolutely must address the stability of that monthly $90 "savings".
Because when the electric company won't pay retail price and opts instead for a whole sale price of $0.03 or less per kw, and your $90 a month becomes $5 a month, and your expected time to recoup the initial investment now extends from 20-65 years based on the "savings" at wholesale prices, instead of the "savings" at retail prices which was sold to you,
well .......... everyone hopes it's not their report that did not address the issue.
Now if you want to play carbon credit reimbursement, which says that at the end of the year, the true-up statement says you generated more electricity than you used, well, I believe there was a national market to sell those credits too, except I don't remember seeing any IPO for one hit Wall Street. I could have missed it, or maybe it's an old boys club for politicians and owners of electric utility companies, but either way, where is the contract that enforces those payments beyond the last day they sent a payment?
But from what I've seen, those are just roll over credits that can carry year to year, or can carry for 6 months without being reimbursed.
Just depends on the specific utility company.
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