I've come across a solar PV system financing arrangement that's pretty creative, that I thought I'd pass along.  It eliminates the long payback period (typically double digit in years).

Essentially it's an alternative where you do a lease purchase arrangement.  The installer receives monthly payment based on the design amount of solar produced KWH.

A key assumption is that you can either consume most or all of the PV generated KWHs, or, you have a net-metering arrangement with your electric supplier.  This assumption is key because your monthly payment is based on the full amount of PV KWHs generated, regardless of it being used, wasted, or credited for.

If you don't want to be in the business of generating power and getting credit for it (or even paid for it as one utility provider in TX will do), then this program works well for systems that are sized to emphasize maximum consumption of the solar generated KWHs.

The summary here is this looks to be an alternative that forces cash flow to always be positive.  There's no free lunch, though, as the large cash flow savings after the pay back period is complete, with a traditionally financed system, are not available.

With payback periods for solar PV systems still being in double digit years, I think investment to own solar PV is still a questionable investment relative to other possible actions, particularly those focused on consumption reduction.  Still though, this 'lease purchase the equipment' program looks to be innovative and attractive now, without having to wait for solar PV related payback periods to improve.

Best regards,

Bill

Been there. Done that. It was a mess. It was quite popular in the late 70s to package solar hot water systems as tax shelter investments and sell collectors using the sales pitch Bill lays out above. American Solar King was the poster child of this era. Google the name for an impressive number of lawsuits. American Solar filed for bankruptcy after Reagan undid Carter's energy tax benefits, at the behest of utilities according to the conspiracy theorists. Seems American Solar needed sales to support the investment brokering it did to finance those sales. Sorta like the subprime mortgage industry. The investors and banks who weren't getting paid had the right to rip collectors off roofs. Dunno if it actually happened ('70s collectors were crap) but it is an object lesson in why one should not hop on the investment fad of the day, or bet on solar to do anything more than cut your power bill in a way that the next politician can't undo.

Thank you for the comments.  I'll study the ASK references.

Best regards,

Bill