A San Francisco-based firm that helped pioneer a third-party ownership model for residential solar panel systems announced it is expanding its services into Connecticut.
Sunrun Inc., which has more than 34,000 customers in 10 states, works with homeowners who are looking to take advantage of solar power but can”™t afford the steep upfront costs associated with a system”™s installation, with those costs ranging from $20,000 to more than $30,000 for a single-family home.
Much like a power plant might sign an agreement with a utility to sell the electricity it produces to the utility at a fixed rate, Sunrun buys and pays for the installation of solar systems on customers”™ homes and sells customers the energy generated by their systems under a 20-year, fixed contract.
As owner, Sunrun also insures and pays for the maintenance of its systems, while customers can buy electricity at a lower and more predictable rate than they would receive from their electric utility, company officials say.
“We remove two of the biggest barriers to home solar adoption: high upfront costs and the hassle of owning solar panels,” said Lynn Jurich, co-founder and co-CEO of Sunrun.
Under a 20-year power purchase agreement signed with Sunrun, “Homeowners are able to lock in low electricity rates and we take care of everything else,” Jurich said.
Sunrun contracts with local solar providers for the installation and maintenance of the systems. For Connecticut installations, Sunrun is partnering with Roof Diagnostics Inc., which is headquartered in Wall, N.J.; Real Goods Solar Inc., a Colorado firm whose East Coast headquarters is in Wilton; REC Solar Inc., a California firm with an office in Somerset, N.J.; and Trinity Solar Inc., also based in Wall, N.J., with an office in Plainville.
The move to Connecticut comes a year and a half after Sunrun expanded into New York state. Sunrun also has customers in New Jersey and Massachusetts.
Is this supposed to be good news? If you can’t afford the imaginary ” steep upfront costs” (only $3.15 a watt before incentives) or only $12,400 for an installed average sized, 4kw solar system before incentives, then why not apply for a $0 down FHA solar loan instead of an expensive lease? With a loan you’ll get to keep the 30% federal tax credit worth thousands of dollars and you’ll own your solar system instead of renting it for a much better return on your investment. And good luck ever selling your home with a lease or PPA attached to it. What homebuyer will want to buy your home and assume your lease payments, when they can buy a brand new solar system for tens of thousands of dollars less and own it?