Cookslav Posted February 7, 2011 Report Share Posted February 7, 2011 (edited) Anyone in the community try these leased solar systems? Curious to get some feed back....thinking about it. My Home is oriented perfectly to maximize exposure and pick up a lot of kW's... The Company in question provides the equipment on a 20 year ROI and pays decent. Return on investment "appears" to be more then the payents in the neighbor hood of $400 a month extra income. The plan is to install the units, and run the payments owed into a seperate account in which the revenues generated also are deposited....at the end of our Mortgage term we dump the profits onto the home, and continue each term. Nothing spent, but long term gains seem like a good prospect. Obvious questions that come to mind for the company: -How long is the equipment warranty? -What Maintenence is required from me Questions for anyone whom uses such a system: -What can I expect as a Ball park low/high month of solar effeceincy? The System is built to, and expected to gather 98% effeciency on a yearly average, but to me That sounds a bit inflated....I think 70-80% sounds more realistic???? Anyway, Outside of the obvious potential maintenence hurdles, and dealing with a realistic effeciency rate does anyone out there have any experience or other related concerns that I should be aware of? Right now....assuming the warranty/financing rate is fair enough to remain profitable It seems like a no brainer, but the inner skeptic in me says there is no such thing as a free ride. Edited February 7, 2011 by Cookslav Link to comment Share on other sites More sharing options...
Steve Posted February 7, 2011 Report Share Posted February 7, 2011 PM me a contact number. I will call you. There is a lot to know regarding the above. We are the countries leading insurer of Solar. I am not trying to sell you insurance, the company leasing your location will have their own. However, I will be able to answer any and all the questions you may have. Regards, Steve Link to comment Share on other sites More sharing options...
Roy Posted February 7, 2011 Report Share Posted February 7, 2011 I wouldn't touch it. What happens if you want to sell your house? Do you replace the roof? What happens if the new owner defaults on the lease? Link to comment Share on other sites More sharing options...
LeXXington Posted February 7, 2011 Report Share Posted February 7, 2011 Just a fyi.. The 20 year ROI is based on a current amount "promised from the goverment" Not like the goverment has every changed there mind or broken a promiss? Link to comment Share on other sites More sharing options...
Cookslav Posted February 7, 2011 Author Report Share Posted February 7, 2011 (edited) I wouldn't touch it. What happens if you want to sell your house? Do you replace the roof? What happens if the new owner defaults on the lease? Thats a good question Roy, I know that technically I will' "own" the equipment....the lease is for the use of my roof. I agree to sell them the space for 20 years, and they agree to finance my equipment while paying me a rate of $0.802 per/kWh for 20 years. So I guess like any lease there would be a buy out which is somthing i will need to look into. Just a fyi.. The 20 year ROI is based on a current amount "promised from the goverment" Yes I would definatly want a lease agreement that outlines the Payment from the said company...not the govenment negotiated rate. If the Company was on the hook legally for 20 years, then I'd be more inclined. I heard about that fiasco last year(or was it two years ago) when the Government changed the rates despite contracts that all the windmill farmers had going....brutal I'd be running the contract by my Lawyer before signing anything because of that exsact reason. Also I would have to run the idea past my Home owners insurance....you never know what they might have to say. The question is what is the buy out penalty. I would not veiw a solar system as a con when purchasing a house, but if I was not able to benefit from it, or choose to remove it....ya that would be a major issue Edited February 7, 2011 by Cookslav Link to comment Share on other sites More sharing options...
Steve Posted February 7, 2011 Report Share Posted February 7, 2011 ROI is not based on a "promise" rather a "contract". (a 20 year one at that) just as a FYI. Link to comment Share on other sites More sharing options...
Big Cliff Posted February 7, 2011 Report Share Posted February 7, 2011 Excellent thread! I would be very interested in knowing more about this as well. How do I get more information on it? Link to comment Share on other sites More sharing options...
Terry Posted February 7, 2011 Report Share Posted February 7, 2011 one question is how long is the equipments life expectancy and will you make a fair profit long before the equipment craps out last time I checked in to solar and wind power. it took 15 years to recoup the money but you could only expect the equipment to last 12 years of reasonable use Link to comment Share on other sites More sharing options...
Cookslav Posted February 7, 2011 Author Report Share Posted February 7, 2011 (edited) Excellent thread! I would be very interested in knowing more about this as well. How do I get more information on it? I am just going through the motions with a company in the next week to get their entire proposal...its a "free estimate" LOL! We have freinds that are in their 2nd year of a solar system, but they did this a bit different. They Bought a small system upfront, and are now paying it off then hoping to turn a profit following the initial investment. I'm looking at it differently, I am looking to take their finiancing, and going big on a fullsized larger generating system. As long as the cash earned monthly is gaurenteed greater then the payment owed its a no brainer. By My calculations it appears I stand to make more in the long run then our freinds who bought smaller but upfront.... But there are some big assumptions there... -The equipment has to last, and carry a good warranty(15 years min) -The Insurance on my home cannot be comprimised. -The Contract for Payment has to be private....I'm not getting in Bed with the Government -And there must be a Buy out/cancelation policy that is fair. I'm always leary of things that seem to good to be true, and right now I'm having trouble believing that I can somehow make money for the next 20 years...with each year becoming slowly more Profitable(as the equipment is paid off) Especially with very little start up capital required? Our freinds swear up and down that they will likely have a 100% ROI in 5 more years, and that their return is better then they were quoted. I guess seeing is beleiving, but I'm leary.... They say nothing ventured nothing gained, but I'm also not a gambler. As I get info I'll post what I can. Edited February 7, 2011 by Cookslav Link to comment Share on other sites More sharing options...
Cookslav Posted February 7, 2011 Author Report Share Posted February 7, 2011 how long is the equipments life expectancyand will you make a fair profit long before the equipment craps out That sir is the question in a nut shell... And I don't know anyone who's had a solar system longer then 2 years to ask? Link to comment Share on other sites More sharing options...
aplumma Posted February 7, 2011 Report Share Posted February 7, 2011 The question is why would a company sell you the ability to make a profit instead of making the profit themselves? If you had a guaranteed winning lottery ticket that would pay you $100.00 a year for 20 years would you sell it for $1000.00? Their is an expense or a possibility for a loss of money that you have not seen yet. Art Link to comment Share on other sites More sharing options...
mikemcmillan Posted February 8, 2011 Report Share Posted February 8, 2011 We had a quote on a system for our cottages, 10 Kw, we have a hydro bill in the $6000.00 range a year so we were looking for a system that would generate enough to pay the hydro bill and pay the loan at the same time. Total cost was $53,000.00 up front investment. It all depends on if Hydro One was willing to take back our electricity as we are in a very rural area and they couldn't tell us if the grid was compatible. Then the solar company calls to let us know that prices have changes and the 10KW system is now $93,000.00. They also wanted up front money to continue on with our project. That was then end of dealing with them. I don't see there adds out there any more. Wish I could remember the name of the place. Link to comment Share on other sites More sharing options...
rpsmith Posted February 8, 2011 Report Share Posted February 8, 2011 Currently in the industry as investor/financier and developer. Here are some key issues to watch: What are your terms on financing? And what is assumed for your ROI calculation. If interest rates rise (which they will) that will have an impact on your ROI. If you are able to obtain a fixed low interest rate loan for the term of the contract then you have no risk on interest rate increases because your loan will be paid off before then. Make sure your contract with the developer is a fixed price. Like the above comment there are a lot of moving variables that can impact the cost of the system between the time you sign contract to when the system is producing power (price of steel, panels, currency, etc). Warranties: Make sure developer provides you with at least a one-year warranty on the system. Ask for copies of your solar panel warranty (usually 20+years) and inverter warranty (10-20 years) should anything go wrong. Shoot me a pm if you have any more questions. Link to comment Share on other sites More sharing options...
POLLIWOGG Posted February 8, 2011 Report Share Posted February 8, 2011 If they lease the space can they transfer it to someone else? This contract could make your house impossible to sell. Do some math $400/$.80=500kwh/10kwh system=50hrs a month/ 8hrdaylight?=6.2days a month that the system works for you assuming 100% efficiency that you will never get. The rest of the time it works for the other guy. The pay out on a 10kw system I think is around $1K a month, You might consider buying a system instead of leasing. I know a guy that sells them and he sells a pile of them, If I was to get one I'd be comparing as many of them as I could. For instance there might be a 10Kw system that could produce 10kw if it ran 100% on a perfect day compared to a system with more panels that really does put out 10Kw on most days. Shopping around might pay off. Link to comment Share on other sites More sharing options...
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