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Want To Try Solar? Lease A Panel
Solar City Offers Monthly Lease
Many who would like to use solar energy feel intimidated by the high up-front price tag, but Solar City is offering an alternative.Leslie Gutman was one of the first Arizonans to figure out how to go green without putting any down."We are shooting for having 60-70 percent of our electricity usage coming from solar panels," Gutman said.
Gutman said her urge to conserve never would have come to fruition if she had to buy the panels."It was going to be about $40,000, and it was something that we just couldn't put out of pocket," Gutman said.Gutman and her husband put off the idea for years, until they recently heard of Solar City, a company with offices in Arizona, California and Oregon that leases solar panels.The Gutmans said their 15-year-lease comes in at $142 a month, includes free repairs and no money down. If they move before their lease is up, they can either transfer the lease to the new owners, pay an opt-out fee, or buy the panels outright."It's just like leasing an automobile," said Bud Annan, a solar energy expert. "Some people prefer to buy, some prefer to lease."Annan, who started the solar energy program for the U.S. Department of Energy in the 1980s, understands why some people are hesitant to buy solar."They say, 'What's the payback? I don't really know, I'm uncomfortable,'" Annan said. "I think that's the bottom line."The Gutmans had been paying $331 each month before solar. Now, they pay about $197 with the panels, saving $134. Add in the lease payment and the price is almost a wash, but the Gutmans said they prefer eco-friendly energy to using energy from power plant.Annan said he believes the new lease option will make solar energy boom, and said he could envision entire neighborhoods teaming up to get a bulk rate from power companies.Annan also said that increased solar production would also allow utility companies to look at whether or not they would need to build new plants or tap the potential of the roof-top generators.There are a few things consumers should know before leasing, however. For example, you are not eligible for tax credits with a lease like you would if you buy.Lease prices are adjustable as well -- the Gutmans' will increase 3.5 percent each year. Still, electricity prices in their neighborhood have gone up about 6 percent.
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