![\"\"](\"https:\/\/energyrealist.com\/wp-content\/uploads\/2010\/07\/HD-venue-1.jpg\" "\\"HD")
<\/a>Is this the right venue to sell a $60,000+ system?<\/p><\/div>\n
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- The presenter had a computer with him, but instead used a three ring binder of black and white slides\u00a0to make his pitch.<\/li>\n
- The basic message was that solar energy saved money and reduced the user’s carbon footprint.\u00a0 A major point was that energy prices will inevitably rise.\u00a0 This is all accepted and probably not news to anyone who is even remotely interested in solar power.<\/li>\n
- The sales “hook” was why would you “rent” your electricity from the power company, when you could “own” it.\u00a0 I have to admit; this is good angle on the whole discussion.<\/li>\n
- One pricing example showed a “6.88K” system (presumably that means 6.88KWh per day – (see correction at end of post)) at $43,344 initial cost.\u00a0 [Which is\u00a0$6.30 per W].\u00a0 Another example had 13.44KWh at $67,725 [$5.04 per W].\u00a0\u00a0The examples then deducted the 30% federal tax credit – which is applicable if one pays enough tax – and a possible<\/em><\/strong> NJ Clean energy of 75 cents per watt [$5160 in the 6.88KW case.\u00a0 There is a $7500 cap on the residential incentive.]\u00a0 A full explanation of current (July 2010) New Jersey incentives is at the NJ Clean Energy site<\/a>.<\/li>\n
- The big drawback of the NJ system is that it is a LOTTERY – applications will be selected at random.\u00a0 [This is a quite unworkable system and many comments from the industry<\/a> bear that out]<\/li>\n
- The presenter quoted some research that showed house values increased by $20 for each $1 of energy saved per year.\u00a0 That would increase the value of a house with a 10KWh system by about $32,000.\u00a0 [I don’t think this would influence buyers of solar systems, because most have a long term commitment to their houses.\u00a0 If one had to sell after installing a PV system in the current market a solar system will probably attract buyer attention and may make the house sell faster.\u00a0 How to put a number on that is another problem]<\/li>\n
- Financing such a large initial home improvement expense is of course the problem.\u00a0 The presenter did not want to get very specific, but the options appear to be:\n
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- Finance it yourself – from cash that happens to be lying around, a home equity loan, or a special loan, apparently a special through HD [I am not sure about this] at 5.99% over 15 years.\u00a0 [If one has the cash, or can get a good loan, solar PV is a good investment – always providing the SRECs work out as planned.]<\/li>\n
- Lease the system – for 15 years, at a price roughly equal to the current electrical bill.\u00a0 The upside is that the lease costs will stay stable, where the electricity costs are sure to increase.\u00a0 What happens at the end of the lease is not clear – enter another lease, or purchase the system at some agreed residual?\u00a0 [The real benefit of the lease approach is that the leasing company (which I assume will work with HD or the subcontracted supplier – this was not made clear) assumes the SREC risk.\u00a0 The downside is that there is no immediate saving in electricity charges, and there is the future purchase or lease renewal.]<\/li>\n
- The numbers will differ by individual, depending primarily on electricity usage and federal taxes.<\/li>\n<\/ul>\n<\/li>\n
- The SREC paybacks make all the difference [see my separate earlier blog on SRECs<\/a>].\u00a0 The\u00a0HD presenter said they were based on a federal mandate that the industry reach a\u00a020% alternative energy goal.\u00a0 There is no such federal mandate, and now that the energy bill is dead, little likelihood\u00a0for any reintroduction for a while. [This will be my next entry in this blog]\u00a0 This Wikipedia article<\/a> shows details of the various states’ renewable industry goals.<\/li>\n<\/ul>\n
Bottom line?\u00a0 Still not convincing.\u00a0 Financing needs to be far more crisp and attractive, and the sales people need to be professional and informed before solar PV has a chance to grow in the residential market.<\/p>\n
- The big drawback of the NJ system is that it is a LOTTERY – applications will be selected at random.\u00a0 [This is a quite unworkable system and many comments from the industry<\/a> bear that out]<\/li>\n