The Cost Has Yet To Exceed The Value
Then they hear a proposal for a 7K system as an example and it’s $32,000 and the temperature in the room instantly gets turned up. This system will produce about $150 a month in power and in most cases cut taxes off the power bill. In a good situation, you will cut about $165 a month or less off a power bill.
They are surprised by the high cost, to say the least, and make comments like “It’s like buying a house”. Then the sales rep explains why the cost is so high. It’s construction and which requires a great deal of detail but don’t worry because the power bill money will be your payment. So see, it’s really free because you are going to pay your power bill anyway. We all hate the power company so why give it to them when you can pay-off a home solar system.
This is true but what about the $32,000? Well unfortunately the proposal shows another $30,000 in interest for a 20-year loan at 5%. Once again who cares you are spending that on your power bill and that’s not including power company price hikes.
Power company costs have not really gone up much over the past 10 to 15 years because their prices are driven by the oil markets. A potential buyer does not realize that, and they like their sales rep so they trust them.
The Customer Wants Financial Gain From Home Solar
The total cost of the example solar system with interest is $62,000, the total twenty-five-years of a power bills at $150 a month is $45,000 without considering rate increases. The solar company has overhead that has far too many hands in the pot and it drives up the price. All the additional costs get passed on to the homeowner and they lose money.
It gets even gets uglier because the power company doesn’t have any term length like financing. Yet about 5% still bought, and I believe the majority bought because they believe in doing the right thing.
Make A Profit From Home Solar With “Your Solar Advocate” Consulting Firm a Free Service!