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August 28, 2009

Free Sun, Cheaper Collectors

I'm sure there is an aspiring Montgomery Burns out there looking for an opportunity, but sunlight is still free. The cost of collecting and converting it to electricity is going down, reports the New York Times. The market changes are driven by increased production, particularly in China, and reduced demand, primarily in Europe.

One Texan who installed a large rooftop system saved 23% on his system, compared to the estimated cost on year earlier. Current federal tax credits saved him an additional 30%. For systems that cost tens of thousands of dollars, those percentages translate into real money.

The upfront cost of the solar systems is still high for many people, no matter how good the payback time for the system looks. The Times also discusses several newer options for consumer financing. A few states allow municipalities to pay the initial capital costs and collect the loan from residents through property taxes. There are also private leasing schemes that reduce the initial cost for homeowners. Some options allow consumers to buy the power from a private entity that owns and maintains the panels. A recent San Francisco Chronicle article gives a good overview and examples of the financing options out there if you're interested in putting solar system on your home.

-Chris, Green

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