In Ontario this summer there is a push on to have small sources of solar power be in production in the next year or two.
This will probably be offered in more states, and provinces and the terms will vary but they will be along the same lines, probably.
This summer know many who have been pitched this and was at a friends place when they were trying to sell one...
positve + negative -
+ 10 year deal signed with Ontario Hydro
+ .82 cents per kilowatt hour. that is a great, great price, other large scale power deals are offered at .14 cents, and base power rates can be 6-8 cents. so a huge premium they are giving you.
+ a bank will give you the whole $100,000 (if you have a big back yard for a whole system or $50,000 system that will fit on most roofs.
- the claim you are not on the hook for the loan, the bank or credit union will take away the system that is all the loan is against...that may be true, but would get it checked out by more than a few lawyers, if you believe that have a bridge or two to sell you!
- the rate they told me was bank rate + 1%, so asked the loan is for, and he told me that bank rate plus 1% is 5.75%, (rates went up .25%) so not sure if it is still 5.75% or 6%.
the loan if it is 1% plus bank rate prime should be 3.75% or 4% now. hate when someone lies about what is an important part of the deal. when they lie about prime + 1% is, then cause for worry. on 50,000 or 100,000 the lower the loan the higher return.
- not sure why the loan could not be at prime, also there are two institutions they deal with, so do they get a part of the loan interest...no idea. just wonder....
+ you get put on the grid forever, a great advantage so after 10 years can still sell power into the grid.
- after 10 years the rate will not be .82 kwh but probably closer to .15-.05 kwh, and if their is a great surpluss they may not offer you anything...chances are you would get a price but it would be low so below .10kwh.
+ with the high .82kwh the sysytem should pay for it self in year 7-8. at the latest year 9.
+ on a large system you would get 9000-13000 depends on many factors.
- so after you pay for the system you get 2 years of pure profit, however that sysytem probably will not be bought for 100,000 or 50,000. there is a sysytem being tested in ontario where they are trying to lower the cost of solar panels by 80-90%.
millions is being spent, they seem to be close, so chances are your system might be worth 10% of the oringal value.
- you have to spend $350 for a test to see it will work, believe this is a joke since 90-95% are approved, and the one in question would be 100%. they charge you 350 because after throwing in that amound you are more likely going through that if you did not put in any money.
do not like that way of doing business. they are making a large percentage off each system so they should absorb the costs... will go and buy a system if they already have an iinvestment, no matter how small....
yes what if the system breaks, or extreme weather, wind, where I live snow, brutal blizzards, that could cover up the panels, they are way to melt but that increases costs.?!
overall not a bad deal but will pass, would be worried of any down time that kill the economics, that was best case scenario.
by the way they have more than enough customers and you might wait or not be able to sign up if you wanted. the demand is high.
also the ontario government wanted to lower the .82 to .62 for the 100,000 sysytem but changed its mind, in the coming years, it may still be offered but at lower rates.
here comes the sun, and good luck.
for now sticking to stocks
thanks
selkirk
This will probably be offered in more states, and provinces and the terms will vary but they will be along the same lines, probably.
This summer know many who have been pitched this and was at a friends place when they were trying to sell one...
positve + negative -
+ 10 year deal signed with Ontario Hydro
+ .82 cents per kilowatt hour. that is a great, great price, other large scale power deals are offered at .14 cents, and base power rates can be 6-8 cents. so a huge premium they are giving you.
+ a bank will give you the whole $100,000 (if you have a big back yard for a whole system or $50,000 system that will fit on most roofs.
- the claim you are not on the hook for the loan, the bank or credit union will take away the system that is all the loan is against...that may be true, but would get it checked out by more than a few lawyers, if you believe that have a bridge or two to sell you!
- the rate they told me was bank rate + 1%, so asked the loan is for, and he told me that bank rate plus 1% is 5.75%, (rates went up .25%) so not sure if it is still 5.75% or 6%.
the loan if it is 1% plus bank rate prime should be 3.75% or 4% now. hate when someone lies about what is an important part of the deal. when they lie about prime + 1% is, then cause for worry. on 50,000 or 100,000 the lower the loan the higher return.
- not sure why the loan could not be at prime, also there are two institutions they deal with, so do they get a part of the loan interest...no idea. just wonder....
+ you get put on the grid forever, a great advantage so after 10 years can still sell power into the grid.
- after 10 years the rate will not be .82 kwh but probably closer to .15-.05 kwh, and if their is a great surpluss they may not offer you anything...chances are you would get a price but it would be low so below .10kwh.
+ with the high .82kwh the sysytem should pay for it self in year 7-8. at the latest year 9.
+ on a large system you would get 9000-13000 depends on many factors.
- so after you pay for the system you get 2 years of pure profit, however that sysytem probably will not be bought for 100,000 or 50,000. there is a sysytem being tested in ontario where they are trying to lower the cost of solar panels by 80-90%.
millions is being spent, they seem to be close, so chances are your system might be worth 10% of the oringal value.
- you have to spend $350 for a test to see it will work, believe this is a joke since 90-95% are approved, and the one in question would be 100%. they charge you 350 because after throwing in that amound you are more likely going through that if you did not put in any money.
do not like that way of doing business. they are making a large percentage off each system so they should absorb the costs... will go and buy a system if they already have an iinvestment, no matter how small....
yes what if the system breaks, or extreme weather, wind, where I live snow, brutal blizzards, that could cover up the panels, they are way to melt but that increases costs.?!
overall not a bad deal but will pass, would be worried of any down time that kill the economics, that was best case scenario.
by the way they have more than enough customers and you might wait or not be able to sign up if you wanted. the demand is high.
also the ontario government wanted to lower the .82 to .62 for the 100,000 sysytem but changed its mind, in the coming years, it may still be offered but at lower rates.
here comes the sun, and good luck.
for now sticking to stocks
thanks
selkirk
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