Go Solar Now for Long-Term Savings

The California Solar Initiative (CSI) was established in 2006 by Governor Arnold Schwarzenegger with the goal to create 3,000 megawatts of new, solar-produced electricity by 2016, with a budget over $2 billion. 

Initially, the CSI offered cash incentives of up to $2.50 per alternating current (AC) watt produced by a solar photovoltaic (PV) system. 

These state incentives, combined with federal tax incentives, would cover up to half of the total cost of a purchased solar system. When I obtained a quote for a residential solar system in 2007, the initial cost was over $20,000, with a final cost of about $10,000 after government rebates. 

Still, this was not in my budget at that time. Although the savings in energy usage and my electric bill would have been substantial, the break-even point was not realistic for my rate of usage. 

And waiting makes the offer no sweeter. The state program was designed to reduce incentives annually over nine years. Now, the rebates range from $1.10 to $.65 per AC watt. The present rebate rate would make the purchase and installation of a residential solar PV system at my home even less attractive, having a higher initial cost and a longer break-even point.

Then, in rolls the solar lease program, which you may have seen on billboards or heard about on the radio. With my interest in sustainability, saving energy, and generally “going green,” I contacted a local southern California contractor with 30 years experience specializing in sales, installation, and service only of solar PV systems.  

Don Deford of Mohr Power Solar informed me that “a solar lease option can save the customers electrical costs from day one, with no out of pocket money.” 

I was intrigued and very quickly sold on a new system installation.

With proof of home ownership and a copy of my electric bill from Southern California Edison (SCE), Don calculated my annual electric usage and determined that the installation of 10 PV panels will suit my needs.

After the solar system is installed, my monthly bill, which will now be paid to the lease company, is locked-in to a 20-year rate, which is $15 less a month than I currently pay to Edison! And as SCE is soon scheduled for one of many future rate increases, I will have dodged the bullet.

The lease plan also includes monitoring and maintenance of the equipment for the same 20-year period, with a recommendation that the homeowner wash the panels annually for the best energy performance.

The lease company pays for the equipment, its installation and maintenance, and collects the government rebates and incentives. When I use less electricity than I produce with my PV system, the excess will run my electric meter backward into the electric “grid,” where SCE will give me credit for my surplus production!

I will update you when the installation takes place, and keep you posted over the upcoming year about how much money I’m actually saving on my electric costs.