So a few of you may have read my post a while back that I was contemplating going solar for my electric on my home. Big debate about costs, effeciency, buying vs leasing, rebates, what people have seen in the past, etc.
Well, I made the decision to lease a system for 20 years. I got the best panels made in the world (yes, I researched it throughly). The panels are warrenteed for 25 years. It took them about 4 weeks to install and included a new 200 amp electrical panel on the house, replacing our older 125 amp panel. Also Edison had to come out and replace my meter for one that runs in both directions...forward and backward. It was another month before I got it inspected by Edison, the City and the County and got everything signed off and approved. So, here's what the money is looking like at this point.
Up front money and/or any balloon payment = 0
Down payment = 0
State rebate = $2012 (paid to solar company)
Federal Tax Credits = just over $12,000 (this goes to the solar company holding the lease)
My monthly lease payment for the next 12 months = $137.00
My Edison bill (I just got my first bill for a full payment cycle) = .65 cents (this was for taxes) plus I got an energy CREDIT that rolls over to this next month for $29.83.
Keep in mind that my average Edison bill (12 month average) WAS $175.00.
All energy credits (+ or -) roll over each month for a 12 month period. At the end of my 12 month period (which started when the City signed off the permit), Edison and I will square up. Either they cut me a check or I cut them a check. Based on what I am seeing for the output now, I should have enough energy credit to get me through the non-sunny days of winter and come this time next year, Edison will be the ones cutting the check. Even is I just break even at the end of the year, I am money ahead.
If I could have afforded to buy a system rather than lease a system, I would have saved a little more money in the long run (15 years) but would have had a much higher monthly payment now ($190) and would have needed to come up with about $5k for a down. So yea.........those of you that look at the pie in the sky senario, it would be better to buy. For us, based on our age, the optional lease buyout and a couple of other things, we decided this was the way we wanted to go.
Our lease contract looks like this:
$137.00 per month for 12 months. Then, the payment goes up 2.9% and we pay that for another 12 months. Then, the payment goes up again 2.9% and we pay that for 12 months, etc., etc., etc.,
We will realize a monthly payment equal to what we HAD been paying BEFORE the system installation in year #8 of the 20 year lease ($175/month).
To top it all off, Edison (out here in California) put in a notice/request with the Public Utilities Commission last March for a 40.3% price increase over the next 3 years. Their justification is that the poplulation of California has outgrown the existing energy grid and they need to upgrade it in most areas and enlarge it in some areas. They are already warning of rolling brown-outs and we had 2 last week when it was really hot. The PUC makes a ruling on Edison's request for the price increase in a couple months (November). I doubt that they will deny it. Historically (the past 5 years), Edison rates have gone up 6% to 8% each year.
To say the least, at this point, I am pretty happy with my decision!!!