HOMEOWNERS WANT NEWLY AFFORDABLE SUN

U.S. demand for residential solar rising in '09
Jon Hurdle, June 9, 2009 (Reuters)

"U.S. demand for residential solar power installations is surging despite an economic recession, thanks to government financial incentives, some easing in credit availability, and increasing public recognition of its environmental benefits, industry executives said…

"Companies represented at the PV America solar conference in Philadelphia said the volume of their installations as much as tripled in 2008 and they see further gains this year as more people recognize that they can cut their electricity bills by at least 15 percent…"

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"Geogenix LLC, a New Jersey-based residential solar company with 20 employees, installed about 150 systems in the first six years of its existence until 2008, and expects to do about that number this year alone…[The company expects to install] at least 300 systems in 2010 when it plans to expand…

"Faced with a cost of about $50,000 for installation of a 7-kilowatt system on a typical 2,500-square-foot house, a New Jersey homeowner can defray the expense with a $12,500 rebate from the state and a federal tax credit of $11,000…After the first year, the homeowner can also expect a refund check for about $3,200 from the local utility…The owner can expect to save about $1,700 a year in electricity bills, and should recoup the initial investment within five to eight years…"

With current subsidies it is now price competitive but the day is coming when it won't need subsidies. (click to enlarge)

"According to…the Solar Energy Industries Association, there was an overall 16 percent increase in solar capacity, including commercial installations, in 2008…[T]he market has also been boosted by lower prices for solar panels due in part to an increase in the supply of the polysilicon…[and] the industry is benefiting from a cultural change that is more accepting of the need to find alternatives to fossil fuels…

"Companies are also getting creative in bringing the upfront costs of solar power down for customers…[GroSolar is] providing financing to customers who are unable to front the $40,000-$50,000 price…[It] operates a lease program requiring a down payment of $1,000 and then regular monthly payments…In California, Arizona and Oregon, SolarCity installs systems without any down payment from the customer, who then pays a lease fee which typically ranges from $25 to $60 a month…The company owns and maintains the system but the homeowner benefits from the reduced utility bills…[and financing] has gotten easier for qualified borrowers since the first quarter of 2009…"