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New developments in residential solar electricity

November 5, 2014 by Daniel S. Gonzales Leave a Comment

solar-panelsA few months back, I noted in my blog a number of problems that had begun to arise in the booming residential solar electric lease industry. These difficulties, which posed a number of significant unforeseen drawbacks for many consumers who elected to tap this alternative energy source, were beginning to cause many to question the benefits of leasing residential solar electric systems.

Solar Electricity Lease Industry

As an apparent result of these and other similar developments, Solar City, the largest installer of residential solar electric systems in the country, announced that it would now begin to offer zero down financing for the sale and purchase of its residential solar electric systems.  Previously, Solar City only offered its residential solar electric systems for lease, not sale, despite the fact that many of its smaller competitors have been selling their systems on these terms.

Solar City Selling Its Systems

By offering to sell its systems on these financing terms, Solar City has entered into a market that it had previously ignored in favor of its exclusive pursuit of its third-party leasing business, in reliance on an economic model based on the lease payment revenue stream. In addition, this shift will allow Solar City to expand into markets that ban these leases, such as North Carolina and Georgia.

From my point of view, this change in direction alleviates many of the issues that I noted in my earlier blog article—avoiding potential adverse property rights, reducing the downside risk of being unable to obtain the necessary approvals for installation of the system, and eliminating roadblocks to a potential future sale of the residence that might arise if there is a solar lease on the property. And by having this additional option, homeowners now have the opportunity to make an informed decision to choose between these two methods of generating residential solar electricity.

Still, homeowners are well advised to take a close look at their future plans for their property in considering which residential solar electricity arrangements to pursue, and I recommend seeking the assistance of counsel in evaluating these options if the choice is not evident.

 

Filed Under: energy Usage, Solar Electrcity, solar leases

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Mr. Gonzales is in private practice, providing representation, advice and counsel in complex real estate, corporate, and business transactions on behalf of public and private institutions, businesses, and individuals.

This material has been prepared by Daniel S. Gonzales for informational purposes only and does not constitute advertising, a solicitation, or legal advice. Neither delivery nor transmission of this material or the information contained herein is intended to create, and receipt thereof does not constitute formation of, an attorney-client relationship. The reader should not rely upon this information for any purpose without seeking legal advice from a licensed attorney. The information contained in this material is provided only as general information and is not promised or guaranteed to be correct or complete. Daniel S. Gonzales expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this material.

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