Solar energy proposal, what do ya think?

[EarPlug]

I bet if you dig deeper the Government IS involved via Federal and/or State Tax Credits. Somewhere in the program they are retaining the rights to any Credits or Rebates.

The cynic in me also questions why do they want to build 100's of small, residential rooftop systems versus a much more efficient "Solar Farm"? Regardless of the "mandate" the must be a profit motive behind this.

 

[aczlan]

The cynic in me also questions why do they want to build 100's of small, residential rooftop systems versus a much more efficient "Solar Farm"? Regardless of the "mandate" the must be a profit motive behind this.

The OP lives on Long Island. Good luck buying enough land for a solar farm there for under a billion.

Aaron Z

 

[Woody65]

I bet if you dig deeper the Government IS involved via Federal and/or State Tax Credits. Somewhere in the program they are retaining the rights to any Credits or Rebates.

The cynic in me also questions why do they want to build 100's of small, residential rooftop systems versus a much more efficient "Solar Farm"? Regardless of the "mandate" the must be a profit motive behind this.

I am sure there are the usual fed and state tax credits. Which since they are providing the equipment, installation and maintenance they would be entitled to.

This is a densely populated area. There are no large tracts of land to have a solar farm. The price per acre is over $100,000 and that's if you can find any large tracts for sale.

 

[Beltman60]

why would they pay for a tract of land when they can use peoples roof tops
just makes good sense
here in Ohio they are starting the same thing and there is plenty of land available (Ohio needs to be 40% renewable by 2020)
but using consumers rooftops already has a attachment to the grid with minimal costs in wire and transformers

I run my barn totally off grid and have looked into putting solar on my house
but with me paying .057/kw it would be about a 6-7 year payback and I'm waiting for more efficiency improvements for the same or lower costs
I believe this will happen in the next 8-12 months and that's when I plan on pulling the trigger

And Eddie is right the technology changes almost daily and maybe in 8-12 months I'll speculate again but I'll see then

 

[BrandonR]

You are giving them free real-estate, and actually paying them for the privilege of it. The panels will pay for themselves in under 10 years so the rest is all profit. They are getting free money from you. You also can't sell the house without the contract being transferred to the new owners so that may limit your options in the future.

 

[Woody65]

You are giving them free real-estate, and actually paying them for the privilege of it. The panels will pay for themselves in under 10 years so the rest is all profit. They are getting free money from you. You also can't sell the house without the contract being transferred to the new owners so that may limit your options in the future.

I realize that they are getting a benefit (profit) out of it. But you are not calculating the 28% savings that I am realizing every month from my current bill, which is approximately $200 per month. Also, no cost at all to me to install and maintain. That means I can put that money to better use earning for me.

 

[dave1949]

Woody I think the power co. needs you more than you need them.

Just from an overall perspective, if they cut your bill in half, it would be reasonable IMO.

I wonder how much wiggle room they have in negotiating these PPA's? Is it fixed, or is more like the landmen who cut a different deal with every property owner for gas wells and pipelines? Any way to find out?

 

[BrandonR]

I realize that they are getting a benefit (profit) out of it. But you are not calculating the 28% savings that I am realizing every month from my current bill, which is approximately $200 per month. Also, no cost at all to me to install and maintain. That means I can put that money to better use earning for me.

Only you can judge whether the savings is worth the restrictions placed on your property. Here we pay about .10/kwh and our solar system will pay for itself in 9 years so at your rates a similar system could possibly pay back in 5-6 years. For us the remaining 11 to 16 years of productivity is pure profit for us, image getting 15 years of bills at $40 per month instead of $200/month.

Letting them use your roof = 28% reduction in bills over 20 years
Buying a similar system = 56% reduction in bills over 20 years.

 

[hr3]

I want to run this proposal by you guys. I was approached by a salesman from Vivant, a solar company sub contracting for PSE&G. PSE&G is taking over the distribution of power on Long Island and are mandated to have 30% renewable energy. A survey was done by them of my area. A salesman came to my home and informed me that I was one of the homes they were looking to offer solar to. I have a large south facing roof with no obstructions. Also, my annual usage is above their minimum requirements. My roof is only 5 yrs old and I installed Timberline lifetime shingles which they also liked. This is beneficial because the panels would not have to be removed for a roof replacement for some time.

So, I listened to his offer which was the following. They will install the system including, solar panels, wiring, electrical, permits etc for no charge. They will own and maintain the panels and roof. There will be no property tax increase since they own the system. My home will generate power which will go into the Grid. I will purchase 80% of my power from Vivant for .15 cents a kilowatt. I currently pay LIPA . 21 cents a kilowatt. The 20% left I must purchase from LIPA. I have to sign a 20 yr contract to purchase the aforementioned power from them. There is a 2.9% cap on yearly rate increases. If I wish to cancel the contract I would have to pay a $500 fee to have the system removed. They estimated that I would save about 20% a month on my electric bill. That sounds good because LIPA has the highest rates in the country. I own a residential home improvements business so I am not concerned about damage to the roof or siding. I would just repair it myself and bill them. I would not put the system on the front of my home but since it will be on the rear of a 2 story residence with a 12/6 pitch, you cannot see the panels.

I was an LEO for 25 yrs in NYC and have a cynical streak in me. I like the idea of solar and want to know if you guys see any inherent problems with the above.

I'd have a numbers person crunch the numbers for you,,, something just doesn't look right with the rates and the proposed 2.9% yearly increases .. Plus what if you don't save 20% a month,, I'd have someone or do yourself what the worst case scenario would be ...

 

[Woody65]

I'd have a numbers person crunch the numbers for you,,, something just doesn't look right with the rates and the proposed 2.9% yearly increases .. Plus what if you don't save 20% a month,, I'd have someone or do yourself what the worst case scenario would be ...

I don't know what you mean. I am currently paying .21 cents a kilowatt for my electric. If I allow the solar to be put on my house I will be paying .15 cents a kilowatt. Thats a 28% savings. In the worst case scenario, being I don't produce enough power, I would buy the power at .21 cents a kilowatt. Which is the price I pay now.

The best case scenario would be me producing enough power to purchase it all back from them at the discounted rate.

The worst case scenario, I don't produce enough power and I buy it from my original supplier at my current rate.

The 2.9% cap on increases is the max. I have to find out what mechanism triggers an increase and what dictates the amount of increase. If they used the max increase the first year it would be .0043 per kilowatt.