| "Solar Technology is Commercial. This technology | | | | They monitor the system in real-time online (you |
| right here is going to help us change the way we | | | | need a phone line or VoIP), and if any problem is |
| live in our homes. " -President George W. Bush, | | | | detected, they will issue a work order to the |
| Feb. 20, 2006 | | | | technician that services your region immediately, |
| The amount of solar energy intercepted by the | | | | and the work will be carried out by professionals |
| Earth every minute is greater than the amount of | | | | with zero cost to you. They not only have a |
| energy the world uses in fossil fuels each year. | | | | customer service incentive here, but a financial |
| Currently, solar power provides less than 1% of | | | | one as well because the customer only pays for |
| US energy production, and a tidal wave of change | | | | the power that is produced by the system. If the |
| has begun-this may be the first you've heard of | | | | system produces nothing, the customer pays |
| it. Switching to solar now not only makes | | | | nothing. It's that simple. |
| environmental sense, but there is also a large | | | | They show how many people have switched to |
| financial incentive for homeowners. | | | | solar with them on their website. As I write this, |
| I have discovered and begun working with a new | | | | they report 15,841 customers. I mention their |
| company that is investing $425 million to build the | | | | website again because it is one of the best |
| world's largest solar photovoltaic (PV) | | | | designed sites on the web, if you ask me. |
| manufacturing facility, and production is slated to | | | | On the website I went to ( I just hit "Reserve |
| begin in September-people started standing in line | | | | Your System Here" (after surfing around for a |
| last fall. | | | | while-saw a cool video with Ed Begley Jr. that |
| Why haven't we adopted solar yet? Three | | | | explained a lot, too-I suggest watching that first), |
| reasons: 1) There's a huge up-front investment | | | | filled out my contact info and answered a few |
| (easily $40-50,000 for the average home-I know | | | | questions about my utility, power usage, etc. It |
| people that have been quoted over $100,000), 2) | | | | was easy-took me about a minute. No credit |
| The homeowner was responsible for all | | | | cards or SS#'s or anything I felt uncomfortable |
| monitoring, maintenance and repairs, and 3) When | | | | giving to them. |
| all was said and done, there was a benefit to the | | | | Here's the catch: there's a refundable deposit |
| environment, but the electricity ended up costing | | | | required after you agree to the AutoCAD |
| the homeowner about four times more than coal | | | | generated design for your home. The deposit is |
| or natural gas, so it had never been the most | | | | $500-1000, depending on the size of the system |
| cost-effective option. | | | | you need. They'll even pay you interest on it. I |
| Until now. They are offering to install a | | | | was fine with that since they are making a huge |
| professionally engineered solar PV system on | | | | investment to help me go green. |
| your home to meet 100% of your needs with | | | | What if I move? They move it for me at no cost |
| zero upfront investment. Your obligation is to pay | | | | one time during the agreement, after that it's my |
| for the electricity that the system produces, and | | | | dime. This is so new-what if they go bankrupt? |
| we will lock that rate in for you for 25 years. | | | | The systems are financed through project |
| That's right; your electricity rate will be locked in | | | | financing. Therefore, if Citizenre goes bankrupt, |
| at a fixed price per Kw/h for 25 years. The rate | | | | the systems will not be affected. The special |
| that you can lock in today is the same rate you | | | | purpose vehicle (or a legal company incorporated |
| pay your utility. Imagine if you were paying for | | | | to do one thing, and that is rent systems to a |
| your gasoline at 80's rates. Imagine you were | | | | pool of customers) will continue to rent the |
| paying 1980's rates for anything! | | | | systems to the customers. The assets have a |
| How can they do this? Vertical supply-chain | | | | very low debt-to-equity ratio, as well as a high |
| integration. They design, manufacture, and service | | | | debt service coverage ratio, not to mention a |
| everything from crystallization and wafering to | | | | debt service reserve account. So it is unlikely that |
| the final walk through inspection at the home | | | | the SPV will go bankrupt itself. It would require |
| upon commissioning of the system. They use | | | | nearly 50% of the rental pool to stop paying their |
| poly-crystalline under glass technology that has | | | | bills for over six months - all at once. The worst |
| been proven in the field to last over 25 years. | | | | that could happen is that the solar system would |
| They manufacture every component specifically | | | | sit on my roof for an extended period of time |
| to integrate with the others, unlike in the past | | | | without charge or penalty-in effect giving me |
| where you could easily have 3, 4, 5, or more | | | | energy for free. In this scenario, I do see the |
| different manufacturers whose components are | | | | bankruptcy court selling off the assets to another |
| not specifically designed to work together which | | | | owner for pennies on the dollar. It would then be |
| resulted in higher costs and energy inefficiencies. | | | | the obligation of the new owner to either recover |
| Also, when you own the entire supply chain, your | | | | the system or negotiate a new deal with me. |
| costs are lower. These days, if you were going to | | | | Recently, the president of the company, Rob |
| buy a system, it'd cost you around $8/watt at | | | | Styler, told me a story-a true analogy. When the |
| retail from a contractor. They figure their costs | | | | refrigerator was invented, everyone used an |
| are around $4.50/watt, which (at least in | | | | icebox. The economy wasn't all that strong, and |
| Colorado) would be covered completely by Xcel's | | | | there wasn't a lot of disposable income floating |
| rebate. Corporations can deduct 30% of the | | | | around, and the refrigerator manufacturer had an |
| production cost right away, and are not limited to | | | | idea. They would give people the refrigerator with |
| the $2000 that homeowners are. Also, since they | | | | no upfront costs. The customer would simply |
| are a business, they can accelerate the | | | | "rent" the system for the same payments they |
| depreciation of the systems, giving themselves | | | | made to the ice-man (sound familiar?). They were |
| another huge tax credit. And, if they can get a | | | | shocked that only 25% of the people took their |
| higher return on your deposit than they agree to | | | | offer (numbers rounded for simplicity). If could |
| pay you, that's another potential revenue stream. | | | | freeze food. It had a light. It was a better product |
| Not to mention the revenues they get monthly | | | | for the same price-so why didn't everybody |
| from their customers, which by my calculations | | | | immediately sign the contract? They went back |
| will come close to being pure profit. I can't believe | | | | and interviewed the 75% that said "no". |
| this model hasn't been used yet. | | | | Twenty-five percent of those did not understand |
| On their website, they have a Solar Savings | | | | the offer, so "no" seemed to be the safest |
| Calculator. I spend about $200/month with Xcel | | | | response. Once it was explained to them, they |
| on average for my Aurora, CO home, and I | | | | signed the contract. The second 25% said, "Ma |
| entered this information and it told me I'd save | | | | never had one, Grandma never had one, so I |
| $17,862.12 over 25 years by locking in today's | | | | sure as heck don't need one." These are called |
| gross rate of 9.2c/Kw/h (which includes taxes | | | | late adopters. To them a VCR is the height of |
| and surcharges-your real cost). My signing up and | | | | modern technology today. The last 25% were |
| switching to solar will also eliminate over 1.3 million | | | | simply close-minded, negative skeptics. They're |
| pounds of pollutants and greenhouse gases which | | | | out there, but how many iceboxes do you see |
| is the equivalent of taking 115 cars off the road | | | | today? |
| or planting 1,926 trees. And if I refer new | | | | As far as I can tell, there's no risk on my part. |
| customers, they will credit my monthly bill with | | | | Calculating my $17,862.12 divided over 25 years |
| 5% of my referral's monthly bill, so I figure if I | | | | gives me an average monthly savings of $59.54, |
| find 20 people in my neighborhood with similar | | | | and I like that. I like knowing I can be 100% green |
| sized power bills that see the same value in this | | | | in my electricity consumption at home. I've been |
| that I do, I can eliminate my power bill for 25 | | | | told I can cancel the agreement at any time for |
| years-or forever if everyone keeps renewing. | | | | any reason, and I like that too, so I'm in. |