What this means for Maui homeowners is that the state is committed to moving our electricity supply away from imported oil, from which 90% of our energy originates. In its place will be a host of other locally abundant suppliers, such as solar (sun), wind, and water. Of course, it’s much easier said than done.
The biggest obstacle for homeowners is the financial commitment and up front cost of installing a solar electric system on their home. Traditionally, homeowners use an equity line from many of the local banks and credit unions. These lending institutions pay the up front cost of a solar electric system, and the homeowner uses the monthly payment they would be paying to the electric company (MECO) to pay off the equity line. Coupled with the federal and state tax incentives offered by the government, the solar electric system will be paid off in about 7 years.
LEASE/PPA
But what if the homeowner doesn’t have equity in their home because of the downturn in our economy? Maybe the homeowner needs to use what equity they have for other financial commitments, like their child’s college expenses? Or what if a homeowner is retired, has their own business, or has an income that doesn’t generate a large enough tax liability to use the tax credits the government is offering?
There are solutions for homeowners who fall in these categories as well. It’s called a solar lease/PPA. With solar leasing or power purchase agreements, a third party buys and takes care of the solar panels; the homeowner pays a fixed rate for the solar electricity the system generates, and this rate will be lower than what they would pay MECO. This way, they skip the up front cost and lock in low rates for solar electricity for the next 20 years, which will save them thousands of dollars.
So for little or no money up front, a homeowner will pay much less for their monthly electricity than they are now paying to MECO.
Also, the homeowner won’t have to worry about the energy production of the solar electric system, as the third party will be responsible that system is working properly. The third party insures the system against damage, they warranty the system, they fix the system if anything isn’t working as it should, and if the solar electric system doesn’t preform as expected, the homeowner will receive money back. It’s a true money back guarantee.
Patrick Shipman of Rising Sun Solar develops solar electric systems for both homeowners and businesses to offset their electrical usage. Call 283-4375 or email [email protected] to find out more information on the financing options available to make solar electicity a reality for you.
