Cellular Industry Provides Solar Financing Business Model Example
Tuesday, January 29th, 2008Years ago I used to work for Motorola and Verizon Wireless was just forming at the time. They eventually became my largest customer. The cellular phone industry works on subsidies of equipment and that model could work for solar power also.
Carriers subsidize consumers purchase of cell phones by getting their customers to agree to 1 or 2 year agreements.
Used to be 1 year but these days 2 year agreements are the norm.
Solar energy equipment sales companies could sell their products to energy companies that could then subsidize the cost of the equipment. It would be akin to a decentralize energy company. Instead of having a powerplant, they would have a network of homes holding solar power panels collecting energy (or other forms of energy generating systems such as wind or generators or something).
The company could then keep some of the energy generated by the home owner that is sold back to the grid and the homeowner would benefit from having to buy less actual electricity from the grid themselves. The entire arrangement could further benefit home owners if the company provided technicians to install and monitor the equipment in an optimal method, possibly even making seasonal adjustments to panels.
I came across one company that is already planning to test a system similar to this model called Santee Cooper in South Carolina. They require the following for a trial program they are running with a limited number of homes:
Be a Santee Cooper residential customer Agree to receive power though the Green Energy Buy Backs Program, also known as net billing program, for a minimum of five years Sign a five-year Solar Homes Initiative agreement Have owned and occupied the chosen free-standing property for a minimum of one year Use the property as a primary, single family residence Complete installation of the solar equipment by December 31, 2008
Santee Cooper program offers financial help installing solar panels
Its not a total solution but a partial solution. Santee Cooper is essentially helping people get a subsidy of about $17,000 on their equipment. That kind of support is like finding super bustiers as opposed to just getting a bit of a lift. That may be a bad analogy, but $17k in essentially what boils down to a subsidy tied to a long term contract could go a long way to making solar energy a reality for many home owners.
I write another blog from time to time called Maven Mapper’s Information – the Light and Maven Mapper’s Information – The Dark. The purpose of the latter is to talk about technology that doesn’t quite work or preferably to talk about technology that could work if it just had that certain something.
You may recall that I was lamenting about not seeing very many solar power products at the consumer electronics show in Las Vegas a couple weeks back.