BP AND HOME DEPOT RETAIL SOLAR

As part of the introduction of this HomeDepot/BP program to Arizona, Arizona State University School of Global Management and Leadership students ran the numbers on a typical system sold at Home Depot (BP panels, Home Depot partner GreenFuel’s charges). With panels guaranteed for 25 years, a 3-kilowatt system covering 1/3 of an average home’s electricity takes 18 years to pay for itself. The homeowner gets $9,000 of free electricity in the system’s last 7 years (assuming 3.78% annual electricity rate increase and no new solar incentives).

Gary Simons, Arizona homeowner/new solar system owner, on his motivation for installing a solar system: "It was a combination of the environment and money-saving…One of the interesting things on the readout panel is the amount of carbon you save from going into the atmosphere (by not burning fossil fuels). It is pretty amazing."

As long as the homeowner can be satisfied for 18 years watching his home save greenhouse gas emissions, he will enjoy running his lights for free after that. On the other hand, the hard cold truth about solar photovoltaic is that $25,000 at 3% interest over 18 years ends up being $42,560.83. And the electricity works in his house no matter where it comes from.

Retail costs simply must come down. But with corporations like Home Depot and BP stimulating volume, they just might.

Home Depot is ready to do business. (click to enlarge)

Solar power systems arrive in more stores
Ryan Randazzo, January 5, 2008 (The Arizona Republic via USA Today)

WHO
BP, Home Depot

WHAT
The BP Solar Home Solutions, a BP/Home Depot stores project, makes solar energy systems more accessible to retail shoppers by offering appointments in the stores to meet with contractors to discuss systems installations.

WHEN
- The BP/Home Depot program started in 2004.
- Like many of the new places to which Home Depot is bringing the retail program, Arizona recently (2006) passed a Renewable Electricity Standard (RES) mandating and incentivizing the use of solar and other New Energies.

BP partner GreenFuel Technologies is doing much of the new contracting. (click to enlarge)

WHERE
Initially only available in California, New Jersey and Long Island, New York, Home Depot stores, the program has now expanded to areas like Denver and Boulder, Colorado, Austin, Texas, and the state of Arizona where incentives now make photovoltaic systems more affordable.

WHY
- Home Depot’s goal is to make a solar system installation no more complicated than renovating a kitchen or putting in new carpeting.
- Any Home Depot retail customer can meet in the store with a solar system contractor. When the contractor has adequate information, he can recommend a system and describe what the homeowner can expect.
- A typical system is $45,000 but with rebates and tax credits can end up being $25,000 out-of-pocket for the homeowner. In some cases, Home Depot participates in the financing. Home Depot also has partners in the system installation business like GreenFuel Technologies.
- It is often when the contractor informs the customer of the incentives package that cuts the cost of system that the decision to buy is made.

click to enlarge

QUOTES
- Kris Mayes, Arizona Corporation Commissioner: "This brings solar front and center…Hopefully, this encourages people to install solar as they are building or remodeling."
- Gary Simons, Arizona homeowner/new solar system owner, after seeing his system generate 9 kilowatt-hours of electricity in a short winter day: "I'm excited to see what it says in the summer…"
- Dustin Hamby, GreenFuel: "We run into customers who don't have the equity in their homes and we don't offer an unsecured line of credit…We take those customers and say, 'let's have you purchase this through Home Depot and we can get you an unsecured line of credit (through Home Depot financing).' …We're trying to get people to look at as a financial benefit rather than an environmental benefit."