In the Cost of Solar, I mentioned how expensive it was to buy solar panels and the long term return of investment. There had to be a better way, and there is. Buying a solar system costs a lot. The better way is that my family will be leasing solar panels from Solarcity.

This is a win-win situation for everyone. SolarCity gets the tax credits and rebates that a corporation gets – which reduces the price of the solar for them. Those rebates from the federal and state government and from the utility company will pay for most of the solar panels. While the rebates and stuff would have been maybe 50% for a homeowner, it is about 75% for a corporation plus the discount for buying solar panels in bulk.

How does it work for my family? Right now my family’s average electric bill for the year is $194. After the 8.7Kw/h system is installed, my family will be able to switch to a time of use plan with the electric company. Our average bill will drop to an average of $77 per month, plus we will pay SolarCity $104 per month – $181 per month for our electricity, compared to $194, meaning that we save only $13 per month. It doesn’t seem like much, but this $156 a year savings will add up over the life of the lease ($2340). Electric rates go up just about every year so that $13 the first year may be $15 the second year, and so forth. Even if we broke even, it is worth it because we are still paying about the same amount to the utility company without the panels.

There are some great benefits as well. It works out for us because we are producing our own energy, obviously helping the environment. If there is a power outage in the neighborhood, if it is daytime, we will still have power for the refrigerator and the air conditioner. If anything goes wrong with the system during the 15-year lease, SolarCity comes out and fixes it. They monitor the panels and are alerted if the panels are not producing the right amount of energy.

As this process goes along, I will write about my experience leasing solar energy. If you have any further questions you would like to ask me, feel free to leave a message in the comment section or email me.

Mark Viquesney