There has long been a debate regarding whether solar power will compete effectively with other energy resources in price and reliability. States such as California that have provided economic incentives to solar energy have experienced explosive growth in solar energy utilization. Nevertheless, most states in US are still highly dependent on coal and natural gas. Solar energy is starting to compete with natural gas and oil, but the drop in the cost of natural gas has dimmed solar energy’s prospects. To solve the high front-cost issue, solar power is now still relying on government subsidies. Some researchers have been doubting if there is any way to end subsidies while still promoting green energy. One way would be to place a fee on CO2 emissions. Compared to expensive oil, relatively dirty coal and troubled nuclear power, renewable energy can definitely play a leading role in the energy needs of the United States. It will be a balance of cost, reliability, consistency, and government policy.
Posts Tagged ‘Solar Financing’
We went to a reception by the Clean Economy Network last night—we had a chance to meet with lawyers and lobbyists, financial analysts, and even a few solar energy installers. We got a good review of industry trends and some of the upcoming challenges from Reed Hundt, CEO of the Coalition for Green Capital and Ethan Zindler, Head of Research at Bloomberg New Energy Finance. There is obviously keen interest in renewable energy these days. Take a look at the news article we posted today on some of the latest optimistic trends in the solar industry. Support for solar energy is up—right across the board, regardless of party affiliation or geography. Some want to reduce the threat of global warming, and some want to create jobs, and still others simply want to do their part to save energy. The solar energy industry is optimistic that the residential PV market will continue to expand. At the reception, despite some of the hopeful signs, there were some long faces in the room.
Ever since we created the SolarTown community, our customers have complained that the financial burden of going solar was simply too great for them to embark on the journey. Starting today, we are offering our customers some relief: a solar loan program with one year of no payments and no interest. If you are a DIYer, you now have this solar loan program as an option so that you have time to receive your economic incentives and you don’t have to go out and get a home loan or put the entire purchase on your credit card. If you are an installer who has in the past had to advance the cost of the equipment for your customers, you can now have your customer place an order for a solar energy system with SolarTown. You will of course still do the installation—but without having to come out of pocket for the solar energy equipment.
Financing of solar energy systems has been a major concern to us at SolarTown since we launched this store and community. The average cost of a typical solar installation is north of $30,000. This amount is substantially reduced with the federal tax credit and some state or local rebates thrown in. But you have to wait months, sometimes many months, to take advantage of the incentives. There are currently alternatives available, but none very appealing. SolarTown has been working on a solution to financing of solar energy systems and we hope to be able to announce the program shortly.