Shedding light on solarThere are 3 basic revenue streams in the solar world.
1. Homeowner buys a system that will virtually run his entire home. He pays upwards of $60k. but never pays an electric bill.
a. Because the homeowner has reduced or eliminated the use of electricity from a power company the homeowner enjoys SRECs (solar energy credits that trade as a commodity nationally) SRECs are needed by power companies to meet local, state and federal mandates for green energy.
b. In addition, if the homeowner generates more power than he uses, that electricity goes back into the grid and the homeowner is compensated for generating the power.
2. An outside vendor offers to put a solar system onto a home for free. The homeowner will typically be required to sign a long term contract (18 years is common). The homeowner will receive a 50% reduction in his electric bill and the vendor will receive revenue for the power company on excess power generated as well as the revenue from selling SRECs.
3. A vendor will install a solar power system onto a home and arrange a long term lease. There could be any number of variations on who gets the revenue from excess energy created and/or SRECs
There are plenty of variations but these are the ones I hear about the most.
Labels: first time home buyer, Jersey shore real estate, Ocean County real estate for sale, Solar Heat, The Tom Smith Group, Thomas J Smith