Solar installer Sungevity announced Wednesday that it has begun offering residential leases for rooftop solar panels.
The Sungevity lease has a 10-year duration, instead of the more typical 15 years or more
Solar leases are seen as a way to expand the use of solar in the United States by shifting $10,000 to $40,000 in solar installation costs from homeowners to installers. In exchange, installers and the banks that finance them get a steady annuity from residential customers in the form of electricity payments.
Sungevity said its program is among the most aggressive in the country. It comes with a 10 year lease duration, instead of the 15 years or more typical in the business.
But if that places more pressure on the company to renew contracts, and give it an opportunity to make money on the equipment it installs, Sungevity isn’t showing it. Co-founder Danny Kennedy expects to see annual revenue grow three to five times this year to as much as $25 million with the lease program a significant contributor.
“We’re on the threshold of finally making solar real for most Americans,” Kennedy says.
Sungevity’s lease program will be available in California and targets homeowners with electric bills of $120 and greater. Customers should be able to save about 15 percent a month without having to fork over a penny for panel installation.
In other words, homeowners with monthly bills of $150 will see their statements drop to $70. In place, they will pay $50 a month to Sungevity for solar power and save $30. The lease comes with a financial guarantee, says Kennedy.
Sungevity is the latest installer to offer lease financing, following in the shoes of SolarCity and companies in states such as Connecticut, New Jersey, Massachusetts and Arizona. To make the program economical, Sungevity is able to collected federal and state subsidies and incentives for the equipment it installs.
In a Wednesday press release, the company, which differs from its competitors by allowing people to buy solar systems over the Web, said it had expanded the hours of its customer call center and promises to provide a leave quote in 24 hours.
Sungevity’s pricing was much higher than two other quotes that we received and Sungevity offered us brands that we had never heard of before. One of the two quotes that we received from another dealer was not only for a larger system at a lower price but it included Mitsubishi solar panels which is a brand that we of course recognized. I don’t understand why Sungenvity has been getting so much attention in the media lately, their prices are condsiderably higher and we can easily save more money each month by changing out our light bulbs than by participating in their solar lease. We’re going to keep shopping.
I believe this blogpost has given so many impact to me, that’s why me and my husband really want to Say thanks for giving us excellnt information.
What is Solar roof panels have a bad impact our health? Solar Panel if renting is very profitable. Unfortunately, my country is not nothing like this.
Some toxic chemicals are used in manufacturing. But once solar panels are in the field or on the roof, they shouldn’t be dangerous to people.