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