5kW system in NJ

[joaop]

Hi all,

Wanted to get some opinions on a system I am looking at.

It is a lease through one of the larger companies. Approximately $60 a month for 20 years on a 5kW system.

Total cost is approximately $14,400 which comes out to about $2.8 per watt.

Seems almost too good to be true, but NJ is very incentive laden with their SREC program.

My other option would be to just get my own system , but I feel like at the cost above...it's actually a really good deal.

Thoughts?

[paul65k]

Hi all,Wanted to get some opinions on a system I am looking at.It is a lease through one of the larger companies. Approximately $60 a month for 20 years on a 5kW system.Total cost is approximately $14,400 which comes out to about $2.8 per watt. Seems almost too good to be true, but NJ is very incentive laden with their SREC program.My other option would be to just get my own system , but I feel like at the cost above...it's actually a really good deal.Thoughts?

I Can't really comment on whether this is a good deal or not but as a Realtor just want to throw out the following question??

Are you planning on staying inthe property for the entire lease period? While the lease of course can be assumed that will be the decision of the buyer and not you (it will be their decision) and if they elect not to assume the lease what is the recourse of the leasing company? Will you be required to continue to pay for it, remove it, pay it off to sell???

Today Fannie Mae and Freddie Mac (Read conventional loans) will not allow you to get a new loan to purchase or refinance unless and until the entity holding a lease will subordinate....is this guaranteed in the lease paperwork?? All in all it is always much cleaner to purchase vs. lease a solar system strictly from a transfer/sale standpoint but this is not to say that leasing won't work in many circumstances, just something that you need to be mindful of while making your decision.

Very few Solar salespeople even know about these issues and will Pooh, Pooh them as "that will never happen", but in the real world of selling a house with Solar installed today leases are an issue. Good luck and just be aware of these issues during your decision process.Cheers!

[joaop]

I Can't really comment on whether this is a good deal or not but as a Realtor just want to throw out the following question??

Are you planning on staying inthe property for the entire lease period? While the lease of course can be assumed that will be the decision of the buyer and not you (it will be their decision) and if they elect not to assume the lease what is the recourse of the leasing company? Will you be required to continue to pay for it, remove it, pay it off to sell???

Today Fannie Mae and Freddie Mac (Read conventional loans) will not allow you to get a new loan to purchase or refinance unless and until the entity holding a lease will subordinate....is this guaranteed in the lease paperwork?? All in all it is always much cleaner to purchase vs. lease a solar system strictly from a transfer/sale standpoint but this is not to say that leasing won't work in many circumstances, just something that you need to be mindful of while making your decision.

Very few Solar salespeople even know about these issues and will Pooh, Pooh them as "that will never happen", but in the real world of selling a house with Solar installed today leases are an issue. Good luck and just be aware of these issues during your decision process.Cheers!

Thanks for the heads up.

I've thought about it and my plan is to purchase the system in year five. In looking at the paperwork it's approximately $8500 to buy it in year five.

I just bought the house, so I don't anticipate selling anytime soon.

[J.P.M.]

Hi all,

Wanted to get some opinions on a system I am looking at.

It is a lease through one of the larger companies. Approximately $60 a month for 20 years on a 5kW system.

Total cost is approximately $14,400 which comes out to about $2.8 per watt.

Seems almost too good to be true, but NJ is very incentive laden with their SREC program.

My other option would be to just get my own system , but I feel like at the cost above...it's actually a really good deal.

Thoughts?

Who gets the SREC $$ on a leased system ? Also, at say, $3.50/Watt, a bought 5 kW system comes out to ~~ $12,250 after tax credit.

[joaop]

Who gets the SREC $$ on a leased system ? Also, at say, $3.50/Watt, a bought 5 kW system comes out to ~~ $12,250 after tax credit.

Right, is that a decent price?

[J.P.M.]

Right, is that a decent price?

Not to duck the question but I'm not in NJ and I'm ignorant of NJ pricing. $3.50/Watt is possible in many regions of the U.S. Perhaps other NJ posters can clarify prices. $3.50/Watt seems the going rate without adders like roof upgrades or electrical panel work.

[kdcblue]

Not to duck the question but I'm not in NJ and I'm ignorant of NJ pricing. $3.50/Watt is possible in many regions of the U.S. Perhaps other NJ posters can clarify prices. $3.50/Watt seems the going rate without adders like roof upgrades or electrical panel work.

I am also in the market to purchase a solar system in Central NJ. I got a quote for a 5K DC system (4.25K AC) with 20 Hyundai 250w panels and ABB inverter of about $17200 before tax rebates. I am not sure if I am calculating the cost per watt correctly...is it $3.44/watt (using DC watts) or $4.04/watt (using AC watts) ? Need expert advice as I am looking for a system in the 3.5/watt range.

[J.P.M.]

I am also in the market to purchase a solar system in Central NJ. I got a quote for a 5K DC system (4.25K AC) with 20 Hyundai 250w panels and ABB inverter of about $17200 before tax rebates. I am not sure if I am calculating the cost per watt correctly...is it $3.44/watt (using DC watts) or $4.04/watt (using AC watts) ? Need expert advice as I am looking for a system in the 3.5/watt range.

Use D.C (nameplate) Watts and price before any credits/rebates. That way, everyone compares apples/apples.

$17,200/5000 Watts = $3.44/Watt. You done good with the math.

Joaop: Note this poster's price would be $2.41 after fed. tax credit.

[kdcblue]

Use D.C (nameplate) Watts and price before any credits/rebates. That way, everyone compares apples/apples.

$17,200/5000 Watts = $3.44/Watt. You done good with the math.

Joaop: Note this poster's price would be $2.41 after fed. tax credit.

Thanks JPM. It's a Sungevity deal. Any advice on specific items I should be watching for as I sign the contract with them ?

[Naptown]

Who owns the Srec's
If they own them and you are paying 2.80 a watt for a lease this is a bad deal.

[J.P.M.]

Thanks JPM. It's a Sungevity deal. Any advice on specific items I should be watching for as I sign the contract with them ?

1.) Without being a wiseass, you should have all the looking done before you sign anything. If you are still considering some lease arrangement, as Naptown notes - who owns the SRECs ?? There are no SRCEs in CA but every contract I've seen that mentions them says they belong to the lessor.

2.) Get your roof inspected and serviced as necessary. Solar lasts a long time. Give the roof under it a good chance of lasting as long. Not cheap, but cheap insurance.

3.) A reputable vendor is worth a tough but fairly negotiated premium. You're after most bang for the buck - not low buck. buying on low price alone is a sucker bet. The joy of a low price is quickly forgotten. Poor quality of install will be an ever present reminder of a poor choice. Again, no guarantees, just more hedging of bets on a trouble free future.

[solarix]

In my experience, Sungevity does a better quality install and quality control than the other leasing companies. They do use a variety of panels and inverters and they will generally make the choices, but you should push for what you want. Did they even offer you the Secure Power Outlet option?

[kdcblue]

1.) Without being a wiseass, you should have all the looking done before you sign anything. If you are still considering some lease arrangement, as Naptown notes - who owns the SRECs ?? There are no SRCEs in CA but every contract I've seen that mentions them says they belong to the lessor.

2.) Get your roof inspected and serviced as necessary. Solar lasts a long time. Give the roof under it a good chance of lasting as long. Not cheap, but cheap insurance.

3.) A reputable vendor is worth a tough but fairly negotiated premium. You're after most bang for the buck - not low buck. buying on low price alone is a sucker bet. The joy of a low price is quickly forgotten. Poor quality of install will be an ever present reminder of a poor choice. Again, no guarantees, just more hedging of bets on a trouble free future.

The SREC's are owned by me as I am purchasing the system and not leasing it from them. Will get my roof inspected and serviced before installing the solar panels.

@Solarix...they are using the Hyundai 250w panels and the ABB string inverter both covered by their 20 and 10 year warrantee respectively. I don't know anything about the secure power outlet option. Can you elaborate more on what that is and how that may be beneficial to a homeowner ?

[Naptown]

The SREC's are owned by me as I am purchasing the system and not leasing it from them. Will get my roof inspected and serviced before installing the solar panels.

@Solarix...they are using the Hyundai 250w panels and the ABB string inverter both covered by their 20 and 10 year warrantee respectively. I don't know anything about the secure power outlet option. Can you elaborate more on what that is and how that may be beneficial to a homeowner ?

Your original post said you were leasing
Which is it?

[solarix]

@Solarix...they are using the Hyundai 250w panels and the ABB string inverter both covered by their 20 and 10 year warantee respectively. I don't know anything about the secure power outlet option. Can you elaborate more on what that is and how that may be beneficial to a homeowner ?[/QUOTE]

The secure power outlet is a feature that only the SMA Sunnyboy brand inverter has. Allows you to have a restricted amount of power even when the utility grid is down. (only when the sun is up of course) If one person in a neighborhood had had this during Hurricane Sandy, there might have been power for charging cellphones etc. SMA has youtube videos on this. Just push your Sungevity rep a little and they'll do this for you.