Thanks to a world that is increasingly going green, solar has risen in popularity as the most preferred source of power. This coupled with the fact that, by using solar panel’s individuals are able to save and efficiently use power, makes it an attractive alternative source of electricity. However many homeowners have been locked out of this market due to the prohibitive installation costs that are as high as 70,000 dollars. However following an innovative move by installation companies to cover all the installation costs, the market has literally been transformed
People are now reported to be making the much awaited shift to solar power in large numbers. However home owners been cautioned not to make rush decisions, and that they should consider every aspect before signing the contracts. These contracts which demand the home owner to pay for the electricity generated after installation for a period of more than twenty years has solicited different reactions from individuals
How does it work?
The logic behind this is that individuals always pay their power bills, even in times of economic hardships. This is illustrated by the fact that homeowners facing foreclosures have continued to pay their power bills. However this payment and financing pattern is not without some problems. Another handicap on the companies’ side is that in case the systems fails to produce the promised electricity, they have to reimburse the customers for any extra costs incurred when paying for the utility
So is it worth it? For the distribution companies it certainly is, this is made possible by the falling prices of solar panels attributed to Chinese companies which have flooded the American solar market with cheap, affordable panels. This has not washed well with the local companies, who are accusing the Chinese companies of economic dumping through unfair incentives and subsidies. There is speculation that the Chinese companies are lowering the prices of solar panels in order to out-compete the local companies, but will raise them once they have gotten rid of the local competition
Is this approach of providing solar power scalable?
The deals vary from company to company and depend on the legal provisions of the particular state one is in; however the overall approach remains unchanged. The companies take care of the installation costs, taking advantage of any subsidies and incentives that the customers are eligible for, while customers pay a fixed monthly charge or a rate for the power produced
Pundits and critics have cast doubts on the scalability of the idea, saying that it cannot be sustained in areas where electricity is cheap and thus cannot be expanded all over the country. On the other hand, local solar panel producing companies are attempting to get the government to impose higher taxes on the Chinese imports which is another hurdle for the sustainability of the program. However amidst all these there is certainly one winner, the customer who will continue enjoying the benefits as long as they last