Prepaid Solar Lease

[erockinaz]

That sounds reasonable. However, the utility company is in the business to make a profit so as more of its revenue is siphoned away by solar panels not under its direct control, they lose money.

APS in Arizona has made some major moves to use solar to help generate power. This solar farm is huge: https://en.wikipedia.org/wiki/Solana_Generating_Station

 

[erockinaz]

Just curious, what is the difference in cost between a purchased system and a 20-year prepaid lease?

The real estate agent just sent over some lease info, and it includes the 20 year prepay. It cost $8954 for a system that deliver more than 10,000 kWhs per year. Not bad, about half the cost of buying a similar system outright. It's in a retirement community, probably figured they'd outlive it .

 

[Meandering]

Consider also that the power going back into the grid, is a sale to a business (the utility company) and the "savings" to the homeowner is then taxable income by the IRS.



Net savings then is dependent on the tax category of the homeowner.

.

 

[glenn walker]

Sounds like a good deal as long as the roof and the owner is going to survive another 20 years

 

[Howard Klahr]

about half the cost of buying a similar system outright.

Not questioning your information, but this doesn't make sense. Given the terms you outline, why would anyone purchase a system?

 

[erockinaz]

Not questioning your information, but this doesn't make sense. Given the terms you outline, why would anyone purchase a system?

Not sure TBH. At the time, there were large rebates and I believe that companies that leased solar were able to take the rebates. I never lease, but with those numbers, I'd probably jump at it.