Post by jeffolie on Feb 11, 2013 13:47:39 GMT -6
3 x Solar US Home Growth to $5.7B, silver demand grows with Solar Leases
Current Chinese solar panels use about .75 oz of silver to manufacture 1 solar panel.
Killer Chinese SMOG has added to the demand for panels within China as the demand crashes with the declining EU subsidities. Japan now plans to ramp up solar panel installations; however, that plan is vulnerable to change as the POLITICS MATTERS of Japan resulted in new leadership favoring restarting their closed 52 nuke electrical generating plants.
" ... Solar Leases Will Drive Solar Home Growth to $5.7B ... A financing mechanism that makes solar energy more affordable is set to propel the growth of the residential market in the United States from $1.3 billion in 2012 to $5.7 billion in 2016,
" ... The solar financing model has its risks. .... solar panels and other equipment to work well and generate the amount of electricity promised by manufacturers over a long haul. .... some manufacturers may not be around to honor their warranties. .... doesn’t mean they guarantee lower monthly bills for 15-20 years in writing. Consumers need to read their contracts carefully.
my jeffolie view: leasing only works well for the 1t 10 years at best because financing expenses reduce the Return on Investment just as in a car lease ... the $3000+ inverter will be a new expense about the 10th year ... California State rebates now are scheduled to decline ... Federal Income Tax credits now are scheduled to decline ... DO THE MATH CAREFULLY ... my personal home solar electric system with 30 panels resulted in a net investment of $10,000 after California rebates plus Fed Income Tax credits, but all the numbers have changed since I had a contractor install it 3 years ago ... I enjoy a check from the electric utility paid annually of little consequence other than I escaped all those rate increases while my families demand has be high but will decline as we become empty nesters over the next 3 years.
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2/11/2013
Solar Leases Will Drive Solar Home Growth to $5.7B
A financing mechanism that makes solar energy more affordable is set to propel the growth of the residential market in the United States from $1.3 billion in 2012 to $5.7 billion in 2016, according to a report released Monday.
The mechanism makes it possible for homeowners to pay little or no money down to have a set of solar panels installed on their roofs. Instead of forking over, say, $20,000 to install and own the equipment, they pay a fee each month for using the electricity produced from the panels. Homeowners typically sign a long-term contract of 15 to 20 years with the companies that pay for solar equipment and labor and make sure the solar panels work properly during the lifetime of the contract.
This model, called “solar leases” or “third-party financing,” was rare five years ago. Now it’s available in 14 states. It now accounts for over 70% of all residential installations in California, Arizona and Colorado, said the report by GTM Research.
California is the largest solar energy market and, unsurprisingly, it also is the first market for solar leases. That’s mainly because the state has budgeted roughly $2.2 billion for rebates to support the installations of 1,940 megawatts of solar electric systems for homes, businesses, nonprofits and government agencies from 2007 through 2016.
The market potential has made California the base of some of the largest solar lease providers in the country. In fact, the four largest all are headquartered in the state: Sunrun, SunPower, SolarCity and Clear Power Finance. Sunrun, SolarCity and Clean Power Finance rose to prominence by raising a lot of venture capital and funds from banks and other investors to finance solar leases. SolarCity has its own fleet of workers who install solar panels while Sunrun and Clean Power Finance contract with installers to do the work.
SolarCity, which also is the largest solar installer in the country, went public last December.
SunPower has only been offering solar leases since 2011, yet it already has signed over 14,200 leases in nine states, its executives said during a conference call to discuss its fourth quarter earnings last week. The company uses its large network of dealers for its solar panels and equipment — something that non-manufacturers such as Sunrun and SolarCity don’t have — to help market the leases. SunPower plans to roll out a solar lease program outside of the U.S. later this year, the company’s CEO, Tom Werner, told analysts.
Solar leases have largely been financed by banks such as U.S. Bancorp. Overall, 28 funds totaling over $3.1 billion have been set up to finance residential solar leases, GTM said. Non-bank investors include Google and utilities that use their own money to finance leases. These investors are counting on a fairly steady return from the fees homeowners pay under their long-term contracts. They also can claim a 30% federal investment tax credit.
The need to raise funds in order expand services and compete effectively has prompted solar companies to look for additional sources of money. SolarCity is reportedly working on bundling its solar leases to back the securities it would issue.
The solar financing model has its risks. Solar lease companies are counting on the solar panels and other equipment to work well and generate the amount of electricity promised by manufacturers over a long haul. The turmoil in the solar manufacturing business, where an oversupply issue worldwide has forced dozens of solar panel makers to file for bankruptcy over the past two years, means some manufacturers may not be around to honor their warranties. Solar lease companies often tell consumers that they could reduce their monthly utility bills by going solar, but that doesn’t mean they guarantee lower monthly bills for 15-20 years in writing. Consumers need to read their contracts carefully.
www.forbes.com/sites/uciliawang/2013/02/11/solar-leases-will-propel-solar-home-growth-to-5-7b/
Current Chinese solar panels use about .75 oz of silver to manufacture 1 solar panel.
Killer Chinese SMOG has added to the demand for panels within China as the demand crashes with the declining EU subsidities. Japan now plans to ramp up solar panel installations; however, that plan is vulnerable to change as the POLITICS MATTERS of Japan resulted in new leadership favoring restarting their closed 52 nuke electrical generating plants.
" ... Solar Leases Will Drive Solar Home Growth to $5.7B ... A financing mechanism that makes solar energy more affordable is set to propel the growth of the residential market in the United States from $1.3 billion in 2012 to $5.7 billion in 2016,
" ... The solar financing model has its risks. .... solar panels and other equipment to work well and generate the amount of electricity promised by manufacturers over a long haul. .... some manufacturers may not be around to honor their warranties. .... doesn’t mean they guarantee lower monthly bills for 15-20 years in writing. Consumers need to read their contracts carefully.
my jeffolie view: leasing only works well for the 1t 10 years at best because financing expenses reduce the Return on Investment just as in a car lease ... the $3000+ inverter will be a new expense about the 10th year ... California State rebates now are scheduled to decline ... Federal Income Tax credits now are scheduled to decline ... DO THE MATH CAREFULLY ... my personal home solar electric system with 30 panels resulted in a net investment of $10,000 after California rebates plus Fed Income Tax credits, but all the numbers have changed since I had a contractor install it 3 years ago ... I enjoy a check from the electric utility paid annually of little consequence other than I escaped all those rate increases while my families demand has be high but will decline as we become empty nesters over the next 3 years.
=========================================
2/11/2013
Solar Leases Will Drive Solar Home Growth to $5.7B
A financing mechanism that makes solar energy more affordable is set to propel the growth of the residential market in the United States from $1.3 billion in 2012 to $5.7 billion in 2016, according to a report released Monday.
The mechanism makes it possible for homeowners to pay little or no money down to have a set of solar panels installed on their roofs. Instead of forking over, say, $20,000 to install and own the equipment, they pay a fee each month for using the electricity produced from the panels. Homeowners typically sign a long-term contract of 15 to 20 years with the companies that pay for solar equipment and labor and make sure the solar panels work properly during the lifetime of the contract.
This model, called “solar leases” or “third-party financing,” was rare five years ago. Now it’s available in 14 states. It now accounts for over 70% of all residential installations in California, Arizona and Colorado, said the report by GTM Research.
California is the largest solar energy market and, unsurprisingly, it also is the first market for solar leases. That’s mainly because the state has budgeted roughly $2.2 billion for rebates to support the installations of 1,940 megawatts of solar electric systems for homes, businesses, nonprofits and government agencies from 2007 through 2016.
The market potential has made California the base of some of the largest solar lease providers in the country. In fact, the four largest all are headquartered in the state: Sunrun, SunPower, SolarCity and Clear Power Finance. Sunrun, SolarCity and Clean Power Finance rose to prominence by raising a lot of venture capital and funds from banks and other investors to finance solar leases. SolarCity has its own fleet of workers who install solar panels while Sunrun and Clean Power Finance contract with installers to do the work.
SolarCity, which also is the largest solar installer in the country, went public last December.
SunPower has only been offering solar leases since 2011, yet it already has signed over 14,200 leases in nine states, its executives said during a conference call to discuss its fourth quarter earnings last week. The company uses its large network of dealers for its solar panels and equipment — something that non-manufacturers such as Sunrun and SolarCity don’t have — to help market the leases. SunPower plans to roll out a solar lease program outside of the U.S. later this year, the company’s CEO, Tom Werner, told analysts.
Solar leases have largely been financed by banks such as U.S. Bancorp. Overall, 28 funds totaling over $3.1 billion have been set up to finance residential solar leases, GTM said. Non-bank investors include Google and utilities that use their own money to finance leases. These investors are counting on a fairly steady return from the fees homeowners pay under their long-term contracts. They also can claim a 30% federal investment tax credit.
The need to raise funds in order expand services and compete effectively has prompted solar companies to look for additional sources of money. SolarCity is reportedly working on bundling its solar leases to back the securities it would issue.
The solar financing model has its risks. Solar lease companies are counting on the solar panels and other equipment to work well and generate the amount of electricity promised by manufacturers over a long haul. The turmoil in the solar manufacturing business, where an oversupply issue worldwide has forced dozens of solar panel makers to file for bankruptcy over the past two years, means some manufacturers may not be around to honor their warranties. Solar lease companies often tell consumers that they could reduce their monthly utility bills by going solar, but that doesn’t mean they guarantee lower monthly bills for 15-20 years in writing. Consumers need to read their contracts carefully.
www.forbes.com/sites/uciliawang/2013/02/11/solar-leases-will-propel-solar-home-growth-to-5-7b/