June 24, 2008 1:05PM
Making Solar Affordable
By Alexis Glick
You know all this talk about going solar? How solar power could be one of the resolutions to our dependence on foreign oil? Well this morning on The Opening Bell I talked to the CEO of Solarcity. They provide solar power, one of the “hottest” alternatives forms of energy right now.
For years they have been selling solar panels but now they’ve figure out any even smarter way to sell power, they’re leasing the panels. It’s a brilliant idea and is gaining steam. Today they announced their expansion into Arizona. Now you can lease a solar panel, just as you would lease a car. Solar panels cost up to $20,000. Here’s what you have to pay if you’re in any area where you can lease solar:
For $70 a month you’ll get a 2.4 kilowatt system (for a smaller home). The upfront costs right now depending on where you live is free until July 31. After that, upfront costs should be between $1,000 to $3,000. As Rive, the CEO of Solarcity says, ” We can essentially make it so everybody can now afford clean power.”
Take a look at my interview with Lyndon Rive.
Comment by Peter Lai
Jun 24th, 2008 at 2:53 pm
It’s too bad that solar is still so expensive. An upfront cost of $1000 to $3000 is still a sizable chunk of change. It’s $70 per month to this solar company plus you’ll still need to pay your electric utility the meter fee so that they can still provide power to you if your solar is not enough to support your usage or when it goes out. You might be able to get the utility to buy your unused solar generated power. Also, I heard there is a converter unit that has a 5 to 7 year life that needs to be replaced. The cost of replacing that unit is not inexpensive either.
It might be better for utility customers to sign up for demand response programs or do energy efficiency upgrade to reduce electric consumption and save money.
Comment by Michael Waggoner
Jun 24th, 2008 at 5:59 pm
An interesting article. More accessible financing would be a big help to broader adoption of solar-electric.
I would like to have heard a few more details: Take one size solar panel, show how much of an appropriately-sezed home’s electricity it could provide summer and winter, and the finances of purchasing versus leasing. What is the term of the leases and what are the termination terms? What happens at the end of the lease; one doubts that they would go to the trouble of disassembling an old solar panel.
This would go beyond the story, but info on the efficiency of this firm’s collectors compared to other models would also have been helpful.
Comment by Justin
Jun 24th, 2008 at 7:04 pm
Stop using my tax dollars to subsidize inefficient/uneconomical energy sources. Let the free market work. PLEASE bureaucrats, stop raping the American tax payer.
Comment by Rob
Jun 25th, 2008 at 9:57 am
I currently pay around $40/month on my electric bill. Why would I pay an upfront fee to have that bill increase?
Comment by Stockaccumulator
Jun 25th, 2008 at 10:37 am
A far better play to buy long today is to just buy a good solar stock and make money on the solar play: Renesola (SOL). In fact there was an earlier post 2 months ago, we believe here, that SOL would double in price in a month, which prediction came true, and I am seeing the same prediction now for SOL everywhere. Our hat is off to the man that in earlier posts who predicted SOL would double, and is once again predicting that SOL will double in one month again… we were not even aware SOL existed back a few months ago. And now his prediction is right again on SOL to double in price in one month again. And now, unlike a few months ago, the world has one eye on SOL, thus SOL, with much more publicity. While too many are piling into ESLR, raising its PE rediculously high, smart buyers/traders professional and non, realize that a far better play today, far less risky, is a strong buy on Renesola, with far greater profit growth and far lower PE. SOL is the most important rare buy/play today… Strong buy at today’s price, for certain… This will be the last we will see of these types of low numbers for SOL. Late July, into earnings will be a whole different story. We all know that. Also the price is so low today, that short interest has dropped off, as it logically does. (Some analysts are commenting on the fact that short interest in SOL has dropped off considerably, as the price is now very much in the danger zone for shorts). And, last time short interest dropped in SOL, its share price started going up about 2 to 6 percent a day for about 25 days, before it slowed down (see/research for april, may, into June). A few foolish people may short SOL at this price, but it is now too low a price, thus too risky; SOL price is extremely low, and SOL has an incredibly low PE for such fast growing/exponential profit growth shown. Also useless to try to time SOL, you will just miss that great rise which we all know will come into the next few weeks. We are long SOL with some shares, but buying more likely all this week, perhaps today… SOL is still one of our favorites of all time… a must own now for sure (SEE what Motley Fool mentions today about an all important fund getting into SOL big, read that article, and other recent opinions of SOL)… Best of all solars by far in profit growth and extremely Low PE at SOL… nothing wrong with the company, so we are happy to hold, buy more, etc.
Really, much less than a year from now, we all know SOL will still exist (unless it is bought out for a pretty penny by some other larger asian energy company). And we all know that a year from now, SOL will have a value 300% greater than today’s price…