TAKING THE MYSTERY OUT OF SOLAR POWER

Part 1

SOLAR POWER IS AN INVESTMENT THAT GUARANTEES RETURNS

Solar Power Solutions’ on staff tax advisor (Bruce Jewett) pays $5.49/month to PG&E and is available for your tax/financial questions at Bruce@CASolarPowerSolutions.com.

Bruce has a little advice for all of us…

Bruce’s three reasons to GO SOLAR:

1.    If your home or business has an electric power bill, you are spending money that has NO RETURN on investment. Take that money that is going to your utility provider and apply it towards an investment that has GUARANTEED RETURNS. Returns you may ask, how? Read on…

2.    A solar power system will immediately increase the value of your home or business (the increased value is non-taxable by law). For every $1 you save annually on your electric bill, the property value increases by $20. The average increased value is typically from $20-40,000 for an average residence. Paying PGE never has a financial return.

3.    As you pay for the system, the money you would have been otherwise paying to PGE is paying for the solar power system! A solar power system will increase your monthly cash flow after it is paid for. Without a solar power system in place, you might as well be throwing that money away!

Bruce’s “NO BRAINER” ADVICE:

“If you have elementary school children, DON’T install a solar power system and plan on paying at least double your electric bill by the time you are sending your kids to college. Or you can install a solar power system and have fixed electric costs for the life of a solar power system which is typically a minimum of 30 years.”

“If you are 10 years or less from retirement, or retired now, DON’T install a solar power system and you can have another bill to pay when on a fixed income. This payment will go to your utility provider and guarantees NO RETURN. Or you can make the decision to install an solar power system now and have NO payments for electricity for the next 30 years”.

Solar Power Solutions President Mark Becker says:

“Most people recognize the need for solar power. Solar Power Solutions recognizes homeowners and business owner’s hesitation to install solar power on their homes or businesses is NOT because they don’t recognize the savings, but they are afraid of the upfront cost. We started this business to TAKE THE MYSTERY OUT OF SOLAR, from both the financial and installation aspects.”

MORE RUMORS TO DISPEL: Financing Your Solar System 101

What IS confusing is how solar power systems can and should be financed. Your average solar contractor will attempt to SELL you what THEY have to offer both in product and financing options. Solar Power Solutions can offer you multiple home or business solutions in financing or product line. We will ensure that you maximize your returns (and minimize your investment) no matter how much cash you may our may not have on hand. How a solar system should be financed in a "perfect world":

1.    The homeowner or business owner will have cash to pay for the system.

Cash payment will give the best long-term return on investment with ALL factors considered, including the money you could have been earning on that cash had you not invested it in a solar system.

2.    The next best option is to finance the solar system from a home equity loan or business loan. The interest on these loans is typically fixed and at a reasonable rate. Some of our solar company affiliates can offer home equity loans or lines of credit in the case you don't have a HELOC (or equity in your home). There are also other loan options available from our installers or from the government for commercial properties.

3.    Third purchase option is a standard loan purchase. Typically this  interest is not allowed to be written off on one's taxes.

4.    The next option is to lease the system. Leasing has VERY LOW or 0 upfront cost, but is much less advantageous long term costs SAVINGS than any of the purchase options.

5.    A power purchase option is also an option, and differs a little from a lease, but may have a higher down payment than a lease.

6.    Next option, do nothing. We all know paying PG&E for our power makes no financial sense; it is essentially money down the drain with no financial return in the short or long term. 

As a summary:

a.    Buy with cash and maximize long-term returns.

b.    Buy with HELOC; closely match the long-term cash advantages.

c.    Buy with standard loan or find govt. financing options.

d.    Lease or Power Purchase.

e.    Do nothing and pay PG&E's annual power cost increases or have fixed solar energy costs. 

Operations manager Bob Libby: "It must be emphasized that our business focus is to choose the best SOLUTION for our customer, not to sell any specific system, product, or service. We started this business to TAKE THE MYSTERY OUT OF SOLAR! 

If you need some more details on financing options, please let us know. It will help us to steer you to the proper installer with the proper program for you.