Free Solar Is Not Without Expense To The Consumer.
January 16th, 2011
Free solar pv systems, as you may have seen, are being offered in many places around the world. As you mother taught you, there is no such thing as a free lunch . So what is happening here? Why are these companies offering to put Free Solar PV System on your roof? The answer is SREC’s. Solar Renewable Energy Certificates. What these companies may not disclose, is that you are signing over the rights to your Solar Renewable energy credit to the leasing company. The value of the Solar Renewable energy credit can equal more than three times the installation cost of your solar pv system or more.
SREC’s are created every time a person or business creates 1000 Kilowatts of renewable energy, typically , wind or solar power . Non-renewable energy producers are being forced to buy renewable energy credits to instead of actually having to produce the renewable energy themselves. The value of these Solar Renewable energy credit, can be quite substantial. In New jersey, they are worth $650.00 per SREC (January 2011).
What these companies typically do is, use the Solar Renewable energy credit potential from your proposed solar pv system as collateral . They will then borrow the money from investors, in order to fund your installation , then divide up the SREC as they are earned 1000 Kilowatts at a time.
Therefore, if one was to take out a home equity loan to purchase their solar pv system, the Solar Renewable energy credit value can easily overcome the small month payment. This creates immediate positive monthly cash flow into the home or business.
So, should you buy or lease a Free Solar Lease ? Only you can answer this. There are many factors to consider. It is always wise to seek advice from a professional financial advisor, before you make a final decision.
Generally speaking, if you have the cash or the credit, you should purchase your Solar PV system. If your credit is somewhat suspect and you do not wish to take on the small risk of future SREC earnings, then let them give you the Free Solar PV System. Please keep in mind, that there is often a maintenance fee, making the system not so free after all.
The value of SREC’s vary from state to state, so this is a huge determination of the availability of SREC. Whether you buy or lease, you will be saving money on your electricity. The SREC system is an additional way for some to pay off their system faster than ever before. As more businesses and homeowners install solar, this will reduce our dependence on foreign oil and takes a lot of the stress off the aging electrical grid in the United States. In New Jersey, go to SREC to find out more.
Thomas Power
Business Development Manager
SunMoney Solar, LLC
Free Solar Lease
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