How?

[lga]

I have a work associate who signed up for ONCOR "green" program. ONCOR being the local utility. As far as I can find out they offer a $10k incentive. His out of pocket is $2500, he has a lease for 5yr. at $25.00 per month. Buy back is $0.00.

the system is a 5kw, roof mount, installed. book cost $27,000.

How?

lga :?

 

[ggunn]

I have a work associate who signed up for ONCOR "green" program. ONCOR being the local utility. As far as I can find out they offer a $10k incentive. His out of pocket is $2500, he has a lease for 5yr. at $25.00 per month. Buy back is $0.00.

the system is a 5kw, roof mount, installed. book cost $27,000.

How?

lga :?

Oncor themselves do not install or offer PV systems. My guess is that it's a Solar City job with a rebate administered by Oncor. I'm pretty sure that in cases like this, Solar City installs the system, leases it to the homeowner, and pockets the rebate. At the end of the lease the homeowner has the option to buy the system.

 

[lga]

How?

You are right, ONCOR has an "rebate" package of in this case $10K, but this does not cover the cost of the system at $27K, I have seen the lease agreement and the buy back at 60 months is $0K.

The only thing I can figure is ONCOR has a second rebate for the installation?

Numbers just don't add up?

:?:?

 

[ggunn]

You are right, ONCOR has an "rebate" package of in this case $10K, but this does not cover the cost of the system at $27K, I have seen the lease agreement and the buy back at 60 months is $0K.

The only thing I can figure is ONCOR has a second rebate for the installation?

Numbers just don't add up?

:?:?

I'm not sure what numbers you are adding, but there is only one Oncor rebate per installation, if they have any money left in the fund. Last I heard (and IIRC) it was about $2.50/Watt. Also last I heard they were out of money. There's also the Fed tax credit, but in the case of a leased system, the lessor (someone like Solar City) retains ownership of the system through the life of the contract and collects the tax credit and the rebate.

You can set up to buy green energy from Oncor, I believe, but that's something totally different. That's to buy electricity from wind generators in west Texas at a little more than the standard $/kWh but for a locked in period of several years.

Just thinking here... if you signed up for Oncor's green energy AND had a PV system, you would effectively be getting more $ for the energy you produce because the kWh's you offset with the PV would be more expensive ones. Kind of a weird way to look at it, though.

 

[jaggedben]

I recently heard that corporate tax deductions for the depreciation of capital assets play a role in solar lease pricing. (Maybe I'm not using precisely the right terminology, but something like that.) It may explain why the lease agreement encourages the customer to buy the system after about 5 years.