Are you among many turning green these days? No, I didn’t mean over the state of the economy, but for the sake of the environment? You ride your bike, and have a low flush toilet. A Prius is parked in front of your house, and in the back, an organic vegetable garden grows. You even sold your lawnmower! But still, you want to do more. Something perhaps on a grander scale? You look up to the heavens for inspiration, and suddenly, blinded by the sun’s bright rays, come inspiration! Solar panels! That’s it!
Why Buy Solar Panels
That is what happened to Jim White who lives in Napa Valley, California. Well sort of. White has become evangelical when talking about solar energy, and is willing to share his research and good news! Go solar and make money! As one of the converted, White acknowledges that it’s not easy when money is tight. “Obviously people are motivated by self interest,” said White. “Yes we are an ecologically minded family, yes, we’re environmentally concerned, yes, we’re concerned about global warming, but people are less inclined to do something unless it saves you money.”
Borrego Solar and SunRun
White’s extensive research led him to a company called Borrego Solar and SunRun, with offices in Berkeley and Petaluma. White said while other firms he interviewed suggested to only install solar panels on the western-facing roof of his barn, none offered the amazing leaseback program which Borrego Solar and an outfit called SunRun have developed. “Borrego Solar also installs the panels on your roof for about a third of the price you would pay if you bought the system outright.”
Leasing Vs. Buying Solar Panels
“In summary, we cut our electric bill in half this year and got a 14% after-tax return on our investment. This ROI is likely to grow annually for the next 18 years, as PG&E raises its rates,” said White. He added that his investment to “go solar” repays the equivalent of about 20% in pre-tax dollars per year. “I paid $16,000 for the system and at the end of the year my savings will be $2,200, and that is tax dollars. Try to get a 20 percent return in the stock market year after year! I defy anybody to make 14% after tax in the stock market for the next 18 years, unless you’re Warren Buffet, period!” enthused White. “And our annual PG&E electric bill will be cut in half.”
The Borrego/SunRun rate never changes over the next 18 years “So even in 2025, I will still be paying 13.5 cents per kilowatt generated and who knows how much the PG&E rates will be by then?” added White. “In effect, Borrego Solar/Sun Run pay for the system, then lease the sun collectors back to me for the next 18 years. And during all this time, they have total responsibility for maintaining the system, keeping the panels clean and functioning at capacity. I pay SunRun for kilowatts generated at a rate that is about one-third the price of those charged by PG&E at the top-tiered meter rate.”
Here’s another part of the deal which pleased White in the contract he signed with Borrego Solar and SunRun, “if the solar electricity, which the system is calculated to generate, falls 5% or more off projection, SunRun pays the customer for the under-generated kilowatt-hours.”
White started to think about putting in a solar system when he saw friends with wineries or larger properties going solar. “They were cutting back dramatically on the cost of their operations,” said White. “So I started to think about what the payback was, because it’s all about payback!”
Solar Panels Need Sunlight
White said there is one prerequisite for installing soar panels. “Unless you have great unfettered western exposure, solar companies are not interested. There’s not enough exposure to bright afternoon sun to pay back the investment in the panel.”
If you live in California, where Borrego Solar/SunRun operate and offer their unique solar service program, White suggested to investigate your own savings potential. “I haven’t found a better way to save, or make, this much money, while doing the “right thing for the environment.”
“But,” said White, ever the entrepreneur, “If you figure out a better angle, contact me!” Until then, interested readers can contact Will Feeney, energy consultant at Borrego, to set up a property inspection and learn whether you are a candidate for the program. Cell is 510-367-4556, e-mail is wfeeney@borregosolar.com.
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