Customers tell horror stories of solar company that gets $422M in tax dollars (FreePSA)

watchdog.org ^ | February 26, 2014 | Tori Richards

[dontreadthis]

We all get them — telemarketing callers pushing home solar-energy systems that will save us from rising electric bills.

Most of us generally hang up. But in 2012, Jeff Leeds, who lives in the Northern California town of Half Moon Bay, listened. His 3,100-square-foot home features 91 incandescent bucket lights, a 180-gallon fish tank, three large refrigerator-freezers and a huge entertainment system. His electric bill was averaging $350 per month.

The sales pitch Leeds was hearing on the phone sounded ideal: Lease a system from SolarCity, the nation’s second-largest solar electrical contractor, for a low monthly fee and reap the rewards of cheap electricity.

“For a $600 fee up front, I would pay $182 a month for the next 20 years,” Leeds said. “They have a performance guarantee. If I don’t make enough electricity, they said, ‘No problem, don’t worry, we will write you a check.’ I thought, ‘I’m covered.’”

A SIGHT FOR SORE EYES: Jeffrey Leeds is reminded of SolarCity every time he looks at his house. Tacked on to that would be what the company called a small bill from the local utility company allowing the customer to use the grid and to cover the use of any electricity Leeds drew from the utility rather than from his SolarCity solar panels.

Now, 15 months later, the local utility company has raised its rates and instead of a lower bill, Leeds is pushing $500 a month with no way out for the next two decades. And he has the eyesore of solar panels that cover most of his roof.

“As a customer, you have no say,” Leeds said. “With a solar lease, you are putting the stuff on your roof. You have a signed contract with the devil and you are stuck with the stuff.”

[dontreadthis]

the Affordable Solar Act

[ecomcon]

30% of the cost is paid by the taxpayer. Soon as the subsidies dry up, they are out of business.

[PGalt]

BIG GOVERNMENT IS CRONY SOCIALISM

Give the full moon to socialists

Kiss my keister BUMP!

[Balding_Eagle]

These are 20 year contracts. What fool would sign a 20 year contract with a government sponsored solar company? Most of those companies declare bankruptcy on 20 MONTHS.

[nascarnation]

Might be better now if they went belly up and he could break the contract?

[fatnotlazy]

Many of these utility companies — not just the solar and green energy companies — are con artists. They sprung up after deregulation. I've had more than a few of them call or show up at my door offering me this bargain basement rate. When I ask for how long, the evasion and lying starts.

In the old days before deregulation, there was one company for gas, one for electric and so on. People complained there weren't any choices. So now we have choices, but the choices are more often than not fly-by-night companies that are here today, gone tomorrow. Although I don't really like monopolies, I would rather do business with the same utility company that had been around for decades. The old established companies are not as likely to swindle.

[tcrlaf]

Stupid is as stupid does...

I’ll bet he boasted to his San Fran buddies how “Green!!!” he was. Well, smugness tends to cost the stupid money.

[Cowboy Bob]

The guy reeks of liberalism. He gets what he deserves.

[raybbr]

Some real interesting and informative comments at the article.

[Rj Snows]

May I say SolarCity, Tesla, Space X- Elon Musk

[Cen-Tejas]

Plus, the gullible morons don’t get that this equipment does not have a 20 year LIFE all by itself. After about 5 years, it starts inconveniently not working. Then, like u say the government AND the company go broke and maintenance under the lease stops.

Then, the lawyers get involved and they have to pay to get all this garbage off their roof and disposed of at which time the EPA jumps on their back too.

Only in California where the resident liberals still trust the government.

A “guarantee” from the federal government would be absolutely meaningless right now to anyone on my street.

[VerySadAmerican]

Or he could move.

Truthfully $350 for that size house isn’t that bad. I’ve lived in apartments in the past where I had $250 monthly electric bills. Now, in a 1700 s.f. house my bill averages $93 a month. It runs $60 to $70 in the winter.

[Popman]

I get a call every two weeks from some company pushing this same idea in Florida ....

I ask them why should my neighbor subsidy my electric bill....

That really flummoxes them....

Click.....

[nascarnation]

Interesting thought.
I wonder how these “20 year” deals are affected by sale of the property?

[super7man]

My wife is a Realtor and these leased panels do NOT add to the value or salability (sp?)of your home. The 20-25 year lease is the problem. Many buyers are leery of being tied into that length of contract for a mere $50/month savings (and most installations do not even make that).

Now I did say “many”. There are the few that are willing to pay more for their electricity to look “green”.

DON’T DO IT.

[nascarnation]

So the lease is attached to the property rather than the owner...I assume you have to get lender approval (assuming a mortgage exists) for the encumbrance then?

[SkyPilot]

Now, 15 months later, the local utility company has raised its rates and instead of a lower bill, Leeds is pushing $500 a month with no way out for the next two decades. And he has the eyesore of solar panels that cover most of his roof. “As a customer, you have no say,” Leeds said. “With a solar lease, you are putting the stuff on your roof. You have a signed contract with the devil and you are stuck with the stuff.”

Houses with solar panels look like complete crap. Sorry, but that's the truth. Plus, this "lease" thing always came across as a scam to me. Several of my friends did it. They said that they would get the panels in exchange for allowing the power company and installer to "buy back" the generated energy from them. When they got their first few bills, they all went bananas. They were lied to.

[GOPBiker]

Three years ago I bought panels and had them installed on my house.

These panels cut my bill by 4/5, so I was paying 1/5 the amount of my previous monthly bill.

The panel cost went down so I added 4 more, higher output panels and now for 3 or 4 months of the year my bill is slightly negative.

The recovery time on the cost is about 10.5 years from the installation time and I will be even. I do expect to live in this house that long or more.

The panels all have a 25yr warranty. So far, so good.

Yes, a hit initially but I get a kick out of watching my meter run backwards on nice days (I am in So Cal).

The electric bill here is divided into two main parts; the electricity you use and the generation and transportation costs.

When I am negative I still owe about $2 for generation and transportation. The effective cost that I did not use is credited to my account at Edison and defrays my annual total bill.

I am happy with this deal.

[sasquatch]

Great solar location. Panels will last a long time under the fog layer.

[BRK]

There is something wrong with either the math or the logic of this story. Right now, solar is a “big pain in the neck” wash with regular old grid power. By this I mean the cost and efficiency of current panels can just about pay for themselves by the time they wear out, and you have all the headaches and unreliability as your only reward.

Now this story does not make sense in that is does not explain how the rates going up hurts this guys solar deal. Wouldn’t the rates going up make his portion the solar production more valuable while still paying the same $182 per month? What would he be paying without the system?

The story also says his system is under performing, and Solar City has agreed to pay him a subsidy for that as guaranteed by his contract? How much? Isn’t that important?