Can't Afford Solar Panels? Lease Them

(CBS)  Sunlight is free. But installing solar panels to heat your home is beyond the means of many Americans.

If you live in California, Oregon or Arizona though - and other states starting next year - a bright idea can save you a bundle, as CBS News correspondent Bill Whitaker explains.

With rooftop solar systems costing $25,000-$50,000, even ardent environmentalists run for cover. And Kathy Nalty is not the greenest person on the planet.

She says she drives a gas-guzzler and doesn't buy much organic food.

But look on her roof. She's gone solar. In her typical suburban house, which she shares with kids and grandma, five TVs and four computers, her electric bill went from $200-$300 a month to just $59 a month.

That's thanks to a hot idea sweeping the solar industry: leasing. Nalty gets solar panels free. The solar company charges her $100 a month for the 15-year lease, and state and federal rebates for new solar systems - worth a couple of thousand dollars - go to the company.

"My usage is down," Nalty says, and she saves so much on electric bills that she actually comes out ahead about $100 each month.

"I kept thinking it was too good to be true," she said.

"Our biggest problem with customers was they didn't want to pay the upfront cost of solar," said Jim Cahill of SolarCity.

SolarCity, one of the first companies to start leasing to residential customers, says it's a win for the company, the environment, the consumer.

"It's allowed people who didn't have the option of getting the system, to get a system," Cahill said.

"Some of the deals out there right now allow you to essentially go solar right away and do so with a lower average utility bill than you had before, even though solar energy is still more expensive than conventional power," said Daniel Kammen, a professor at U.C. Berkeley.

With leasing, incentives for businesses, and rebates for homeowners who buy systems, solar panel use doubled in California last year - a big step toward the ambitious goal of generating one-third of the state's energy from renewable sources by 2020 and proof of Gov. Arnold Schwarzenegger's assertion that "you can be good to both the economy and the environment."

So Kathy Nalty isn't the greenest person on the planet - but leasing has made her greener.

And, "I feel a little less guilty," she said.

[1876638920]

or...lease your rooftop for solar.

You can list your rooftop to host a solar project.

http://www.seglet.com.

[todayturnstomorrow]

With much respect to the viewpoints you each have on solar lease programs. I beg to differ, a solar lease program is designed to make the solar conversion to clean energy a simple and affordable way for the masses to participate in a solution to help minimize the environmental destruction, and dependence on fossil fuel driven power plants. In this economy most homeowners are just trying to get by, they want to do something to change our carbon footprint, but the investment of $25,000 and even after all the rebates and write offs they may only pay about $11,000 for the system. Then factor in the maintance and repair cost of a system, the purchase option to a new solar customer may seem a bit of a stretch. A new solar customer should have the option to test drive the technology before investing and a solar lease offers just that. Technology changes so fast these days, many of the systems being purchased today may be obsolete in 10 years, remember all of those giant cable satellite dishes, or the block sized cell phones, and I can go on and on, the point is sometimes it is better to find a way to enjoy the technology during its ?evolution stage without having to invest the farm. The main mission is to bring the clean energy of solar to the masses with a program that will work for them now, not wait until they can afford to purchase and who cares if a homeowner buys or leases? What we desire is a clean environment, and the reduction the BP oils spills and the coal mining accidents. Ohhh, by the way there is a solar lease program that you can lease with the option to buy in six years, they have two of the best leasing programs in the nation, you can get a free solar quote and compare before you decide. Read about it: http://www.2rentsolar.com Either you are part of the problem, or part of the soultion, which are you gentlemen?

[vhariton]

Wonderful idea. Sounds like a great way to make solar power for homes affordable now, and hopefully upgradeable as technology improves.

[FreeCleanSolar]

Anything that promotes the adoption of solar energy should be applauded. Leasing is one option that makes sense for some homeowners, but it has some drawbacks. Notably, the savings are significantly less compared to other purchase methods, there could be balloon payments, it requires a very high credit score, and there could be complications upon a sale of the property. A property sale requires the new owner to sign a leasing contract or a balloon payment for the current contract.

If you are worried about the upfront cost for solar panels, there are many financing programs available to homeowners with good credit. Some loans are tax-deductible too. Buying the system outright will generate the greatest savings. To learn more about solar costs, savings benefits and financing, visit <a href="http://freecleansolar.com">www.FreeCleanSolar.com</a>. You can also search a nationwide network of 500 local solar installers and find information about state solar rebates and federal tax credits.

The bottom line is that many home and business owners can afford and save with solar power today. For example, if you spend $200 per month for electricity, then you will spend $81,979 over 25 years, including a low annual price inflation rate of 2.5%. No matter how you calculate it, you will save money with a $5,000 to $25,000 solar panel system. Remember, you can pay the utility for 25 years, with annual price increases, or you can pay a lot less with solar power.

[jxknowles]

For certain parts of the world and the U.S. this makes a lot of sense. I would also like to install solar and leasing may be my solution.

[sarajaju]

I like the idea. Are you not suppost to buy things that appreciate and lease things that depreciate. So what if Solar City is making money on the deal they are absorbing the depreciation and we are a free market society...its just business.

[rf35]

I guess it's a good idea for larger families/homes. I don't use enough electricity for this to make financial sense. I'd love to go solar/wind, but the upfront cost prevents it and this lease scheme is more than I pay monthly for electricity now. If I were a big energy-waster, it might come out cheaper; but I concentrate on conservation and efficiency. There's more than one way to skin a cat (or an oil sheikh).

[louiville2_5]

You guys did the math right? 100/month * 12 months/year * 15 years = $18,000

They quote "With rooftop solar systems costing $25,000-$50,000", couple that with a life span of 20 years and the fact that the cells lose their ability to convert sunlight over time. Result:

A) the lease company is losing money (check the fine print my guess that's where the profit is)
B) the $59/month cost she pays now will go to $100+ as the solar cells lose efficiency.

End result Novel but more money, more CO2 due to mining etc to collect transport and recycle the cells, batteries................. needed to use this.

That and power companies will still be needed as a backup source, especially after a hail storm.

[rf35]

In regards to the bit about the lease company losing money: they also keep the government rebate/incentive money. There's the profit. As far as the rest, you might have a point. I can't say I've done that much research since they are not a viable option for me.

[azure13]

Man I would love to have one of these systems! As the articles says, it's always been the cost that kept me away.
I want to hear more!

Indy... where did you get the idea that leasing was a Republican idea? Trust me, they would rather you keep your oil burner.

[sjc_1]

The company owns the panels after 15 years, so if you want to extend the lease you can, but the profits go to them. If you buy the panels, YOU or the people that buy your house keep the profits.