Rooftop Solar Ownership Models - Energy:Minute
When you see solar modules on the roof of a building, they might not actually belong to the building's owner. Two common ownership scenarios have been around for several years. Lately, utilities have been devising new ownership models, to meet renewable energy requirements in their states. Learn the differences, in a minute. (podcast)
April 07, 2010
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Transcript
When you see solar modules on the roof of a building, they might not actually belong to the building's owner. Two common ownership scenarios have been around for several years: Buying and installing a solar power array means taking the financial incentives and risks, along with the power, with a fixed up-front outlay. There's no incremental cost for the power.
When a third party owns the array, they own the power, and sell it to the occupants. There's no up-front cost to the building owner, just a monthly power bill. The rate per kilowatt-hour is negotiated for the life of the agreement, so it acts as a hedge against fluctuations in utility tariffs.
Lately, utilities have been pursuing more solar power projects, and devising new ownership models, to meet renewable energy requirements in their states. In one model, the utility signs a lease for the roof of a building and installs a solar array on it. The utility keeps the power to serve local customers.
