The biggest thing stopping the sun is money. Installing a rooftop array of solar panels large enough to produce all of the energy required by a building is the equivalent of prepaying its electricity bill for the next seven to 10 years—and that’s after federal and state incentives. A new innovation in financing, however, has opened up an additional possibility for homeowners who want to reduce their carbon footprint and lower their electric bills: get the panels for free, then pay for the power as you go.
The system works something like a home mortgage. Organizations and individuals looking for a steady return on their investment, typically banks or municipal bond holders, use a pool of cash to pay for the solar panels. Directly or indirectly, homeowners buy the electricity produced by their own rooftop at a rate that is less, per kilowatt-hour, than they would pay for electricity from the grid. Investors get a safe investment—the latest generation of solar-panel technology works dependably for years—and homeowners get a break on their monthly bills, not to mention the satisfaction of significantly reducing their carbon footprint. “This is a way to get solar without putting any money down and to start saving money from day one. That’s a first,” says SolarCity co-founder Peter Rive.