Is this a good deal? 17c per KW, 20 year $0 down lease, 2.9% annual increase

[dudester]

Hello everyone, I am new to solar for residential homes. I had a SolarCity rep come out and give me a proposal. The complete proposal is here https://www.dropbox.com/s/liekbpbzyq...0anonymous.pdf.

Basically, the deal is this:
17.5c per KW (they dropped it from 19.5c after negotiations)
20 year $0 down lease
2.9% annual increase
13,726 kwh/year- Guarantied Annual production
My PG&E bill averages about 1250 kwh per month throughout the year (lowest is 1100 in june and peaking at 1700 in december). Average cost is about $300 per month.
The engineering drawing shows 39 panels and 2 inverters.

Any feedback is appreciated

[wanabefree]

Highes price I have seen from Solar city,

Hello everyone, I am new to solar for residential homes. I had a SolarCity rep come out and give me a proposal. The complete proposal is here https://www.dropbox.com/s/liekbpbzyq...0anonymous.pdf.

Basically, the deal is this:
17.5c per KW (they dropped it from 19.5c after negotiations)
20 year $0 down lease
2.9% annual increase
13,726 kwh/year- Guarantied Annual production
My PG&E bill averages about 1250 kwh per month throughout the year (lowest is 1100 in june and peaking at 1700 in december). Average cost is about $300 per month.
The engineering drawing shows 39 panels and 2 inverters.

Any feedback is appreciated

Most all the quotes I have seen have been in the .15 to .16 kwh at least here in Southern California. Where are you located ? Definitely shop around and get multiple quotes.

[Wy_White_Wolf]

What are you paying now?

At 2.9% you'll end up paying 30.12 in year twenty. I'm currently paying on 8 cents. Figuring a 5% yearly increase I'd only be paying 20.215 in 20 years.

WWW

[dudester]

I am in Burlingame, CA 94010

Most all the quotes I have seen have been in the .15 to .16 kwh at least here in Southern California. Where are you located ? Definitely shop around and get multiple quotes.

[dudester]

WWW, where do you live and who is your solar provider?

What are you paying now?

At 2.9% you'll end up paying 30.12 in year twenty. I'm currently paying on 8 cents. Figuring a 5% yearly increase I'd only be paying 20.215 in 20 years.

WWW

[JCP]

If with Solar City, you can have them lock in your KWh price if you put some money down. That being said, on the system I'm about to purchase, my 20 year average after putting $2k down will be around 13c. Years beyond will be free except for maintenance costs.

[JohnInSoCal]

another thing to consider with a PPA system is if you size it to your current power use which seems you are just about doing is to remember that you will pay for all power generated by the panels whether you use it or not. So if your daily habits change due to say working more and spending less time at home, or getting more efficient lighting/appliances, etc. you will be overpaying for power you are not using. Also the escalator will have you paying 30 cents a kwhr near the end of the lease. The escalator will likely hurt your resale value of the home, how many people are willing to take on a long term lease with an escalator on it ? Also what if the new owners use less power than you currently do because they are rarely home ?

[dudester]

JCP, what is the size of your system?

If with Solar City, you can have them lock in your KWh price if you put some money down. That being said, on the system I'm about to purchase, my 20 year average after putting $2k down will be around 13c. Years beyond will be free except for maintenance costs.

[JCP]

JCP, what is the size of your system?

I should have been more precised: my "anticipated" cost per KWh as I'm signing my contract tomorrow. I've created my own spreadsheet based on a 20 year repayment schedule (thanks to my HELOC), normal system efficiency and degradation, insolation for where I live, etc. My cost per DC Watt after the Federal rebate is $2.70 for a 4 KW system. I'm on the other side of the bay from you (Fremont).

Anyway, after getting 3 quotes from local installers with near perfect Yelp reviews, I am pretty sure I'll do much better than what Solar City was offering, and I get to choose what equipment I'm getting.

[dudester]

JCP, can you point out what installer you narrowed down to from Yelp?

thanks.

I should have been more precised: my "anticipated" cost per KWh as I'm signing my contract tomorrow. I've created my own spreadsheet based on a 20 year repayment schedule (thanks to my HELOC), normal system efficiency and degradation, insolation for where I live, etc. My cost per DC Watt after the Federal rebate is $2.70 for a 4 KW system. I'm on the other side of the bay from you (Fremont).

Anyway, after getting 3 quotes from local installers with near perfect Yelp reviews, I am pretty sure I'll do much better than what Solar City was offering, and I get to choose what equipment I'm getting.

[russ]

JCP, can you point out what installer you narrowed down to from Yelp?

thanks.

Please do so by PM with no names on the site.

[JCP]

Pm sent

[Wy_White_Wolf]

WWW, where do you live and who is your solar provider?

I'm in Wyoming at that is what I pay to the PoCo. Why would I want to pay any more.

[russ]

WWW, where do you live and who is your solar provider?

Maybe you mean who is ripping you off for extra money for electricity?

[stewall]

Thanks for the PA

Dudester
Thanks for making available the contract from Solar City. I am considering using them myself so this was very timely of you!
My main concern at this time is selling the property before end of lease.
Thanks
Steve