Do you recommend solar leasing to your clients who are interested in solar?
- No. (56%, 30 Votes)
- Yes. (44%, 24 Votes)
Total Voters: 54
What are your experiences with solar leases? Did you or your clients have any unexpected complications in connection with a solar lease, or solar panels? Share your experiences in the comments section below, and first tuesday will research your concerns in our upcoming article on solar leasing!
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I looked into solar A/C-heating, I do not recommend it, especially leasing programs. Right off the top, just look at the very large number of firms advertising out there. I checked a number of their licenses with the CA contractors Board. You would be surprised how many firms just opened, how many do not have a certified person/contractor listed, and how many are using hard-core sales persons to sell the products, especially through the HERO program in Riverside Co. Since so many are start-ups, will they be around in 5, 10, or 15 years to repair the units as they promise? Some firms,with whom I talked to, are judging their quote on the number of panels required? If it is felt the cost is too high, they will offer you less panels, suggesting you may have a (small?) utility bill. The actul panels (almost all) are made in China, or by Chinese controlled companies in the U.S. with tremendous mark-ups (Check it out). If you sign on under the HERO program, you make payments through your house taxes. Need a larger tax bill for X number of years?
I agree with Mr. Coye (above). Leases are problematic for the reasons he noted. When does the lease end…if ever? Also, from my investigation and contacts with these solar firms, I am in agreement with Mr. Swain, Mr. Gray, and Mr. Artman. Solar A/C is a boondoggle and a rip-off.
I checked into solar several years ago for my home. Several companies gave me quotes in the $30,000 range. My electric bill was only about $100 per month on average with a high of about $200-$225 during August and September. At that rate, it would have taken me over 30 years to recoup my investment, but no solar company would give me a 30 year warranty, which meant that if the panels went out, I would have to replace them at my expense.
Without government subsidies, solar is just a big ripoff. With government subsidies, it just means the taxpayers (you and me) end up paying for other peoples’ electric bills.
It might be good, in theory, but it is just not cost effective, in reality. And, in my opinion, if it can’t stand on its’ own merits, it should not be subsidized by the taxpayers.
It’s not worth the money, Solar companies don’t tell you the of all the things you can do before you installed the panels in order to cut down your on energy bill so that you will use less panels.
I went from 26 panels to 6 panels and saved 3/4 of my bill, form more info you are welcome to contact me.
Manny Rodriguez
I too have recently been in a transaction where a solar lease is involved. The property is selling for well above $2,000,000 and the buyer did NOT want to take over the solar lease–thinking it was a very bad investment and he would have much preferred to have bought solar equipment outight. It took a lot of negotiating to bring the buyer and seller together on this issue so I agree that many of the people with the leases have not yet experienced what prospecttive buyers will think about it. It will remain an item to be negotiated. Also, I think it is a poor idea to put the panels on the front of the house–which some people have done. It does not look good for the indiviual house or for the neighborhood.
Question: How do you spell boondoggle?
Answer: SOLAR LEASE
My background as and electronic engineer, real estate broker and developer and builder gives me knowldege of every aspect of the solar industry from research and development, to manufacture, to design, to installation, and to useage.
The City of Burbank approached me to install rooftop solar panels in a commercial center. This would be a lease to own, an no cost. I said “fine give me 100 kilowatts of panels, but they must be American made”.
They said that nobody has ever asked for American made solar panels, but they would look into it. The reply several weeks later was that it would cost an extra 15%. I said “fine go ahead”. Another few weeks later the response was that the program was fully subscribed, and they would not be installing my panels.
One year later Solyndra, and others, went bankrupt. You may have heard of Solyndra, an American manfacturerer of solar panels that went bankrupt because it could not compete with Chinese solar panels, even with millions in taxpayer subsidies.
Then Congress, in its infinite hindsight, tried to reverse the law of unintended consequences and passed a tariff on imported solar panels. Then Chinese companies bought the bankrupt American solar companies and became domestic producers that could now escape the import tariff.
This is just a brief summary, but the same scenario applies to electric cars and their batteries. (Look up A123 Systems)
We tried to negotiate a lease on several hundred acres of Mojave land for a solar farm. The tenant’s lease was so one sided that we advised our client to decline the offer. There were no guaranteed payments, and many restrictions on the landlord.
Here us my deal.
1. No out if pocket cost what-so-ever.
2. Total electrical output for full 20 year lease period detailed in writing up front. They will pay any under generation of electricity form panels to Edison.
3. Full maintenance for entire 20 agreement. No cost to me
4. All installation, theft or damage insured by 3rd party insurance company.
5. Lease may be bought out at Amy to.e over 20 year period. Basic reduction is 5% less for evrry year into the lease for 20 years.
6. End if lease…. full removal at no cost or purchase of panel and system for appraised price then. My decision.
7. About 15% to 18% less than my bills today and a flat least cost over 20 years. No 3% average increase like Edison. In my situation potential savings is tens of thousands over the lease period.
8. Something like 330,000 tons of carbon not released because of my installation.
So less expensive flat rate….total out put power guaranteed, all maintain and monitored by the company and fully insured? And allowed to be soled at a company I trust Lowes. I said yes.
So here is the real reason for me.
If the guy down at the end of the block for some reason hates me and my family and says convert or die…..I just do not wish to purchase anything from his store… I will take business….my purchases elsewhere.
Anything I can do to not burn oil I believe is a good thing. I am not a global warming person….might be if they can tell me how the earth was do much warmer millions of years ago with no oil burning. I just think independence is a good thing to strive for.
As far as the banks not accounting for an electric bill when qualifying a buyer. That will end because it just makes logical since we all must pay for power….every month..just like a MTG.
Another comment. If you have cloudy skies most days, why would you even consider solar? Don’t blame it on the company.
I am recently dealing with two sales where the lease has to be paid off or assumed. However, the companies are willing to negotiate. Lease payments can be prepaid and shared between buyer and seller at close of escrow. The buyer who leases the panels can negotiate with the company to update the equipment upon end of lease and talk now about payments at that time. Get smart. Use your negotiating skills with these companies and you can do well.
Our solar lease became effective last week. Sungevity sent us a $500 check and the panels are producing electricity that is used in my house. The installers were professional. We are paying the current rates, based on 2012 usage, for the next 20 years! Our electricity bill is stable for the next 20 years, so we don’t worry about turning on the A/C. We would only need to add panels if we bought a plug in car. Since I didn’t want to pay for solar, I went with the lease. Sungevity pays me $500-$1,000 for every referral of mine that signs up! I would highly recommend a solar lease from Sungevity.
I have recently investigated installing solar at my personal residence.
The lease can be problamatic . 20 to 25 years commitment and then one must renew the lease at the new rates . This will obviously be a much higher rate in 20 or 25 years. The equipment will also likely be antiquated and in need of replacement or repair after 20 to 25 years.
A purchase makes more sense if the system is affordable. Unfortunately Solar is very expensive for what you get. The average ruturn on investment is 17 1/2 years . Ater that period you are really saving money providing the unit does not fail and you are still alive to enjoy the savings. Leases hold more risk but savings are immidate in most cases. Transfering leases, moving equipment, or removing equipment all have some risk associated. Example: You lease a system for 20 to 25 years. You decide to sell the home after ten years. The buyer does not qualify or does not want to assume the solar lease. You now must now have the unit removed or moved “if even possible” . If removed you have breached your contract and will owe the remainder of the lease payments for the entire period. IN my case that figure was over $200 a month after ten years. Let’s say $200 x 12 months or $2400 per year for the remaining 10 to 15 years. You do the math! One could purchase a whole new system for that. That is the risk. Will that happen?Probably not. But that risk does exist. My oppinion is Solar needs to become a lot cheeper before it makes much sense for most applications.
Solar does Not work. I had solar for my swimming pool and had double the square footage that they initially recommended.
Most days, we have clouds during the morning and very often we have partially overcast skys in the afternoon.
Unless you live in the desert with full strong sun all day, it will probably not be cost effective. Plus you will probably have maintenance costs in addition and hope that your solar company does not go out of business.