Once again, private sector entrepreneurship is beating big government to the punch on yet another initiative – clean, renewable energy. According to Google, the company will be teaming up with California-based solar energy company SolarCity in order to combine both entities’ funds into a $750 million initiative to install solar panels in homes across the country.
According to ThinkProgress:
“Here’s how it will work for the average person. The first step is you need to own a home. Then you work with SolarCity to design a customized system for your particular roof. They look at past electric bills and the rate charged by the utility, and guarantee a lower rate that locks in a lower monthly payment. For instance, if your normal monthly bill is $200, it could drop to $60 after the installation, plus $100 in the monthly solar rental, yielding a new average monthly bill of $160. Google’s initial investment pays for the system outright through a lease or power purchase agreement. You do not have to pay for the design or placement of the panels SolarCity installs and then maintains throughout the life of the lease.
Once installed, the panels generate renewable, clean electricity, feeding the grid mostly during times of the day where demand is high. The homeowner pays the lower monthly electricity rate, not worrying about rising utility bills or extra carbon pollution. Google and SolarCity pay to maintain the panels because they own them. Both companies pocket the income brought by sale of the power to the utility through net metering, as well as federal and state renewable energy tax benefits. At the end of the lease or rental term (usually 20 years), much like an automobile, you have the option to buy the system back, set it up as a loan, or let SolarCity take it back, no charge.”
And Obama said guys like the Silicon Valley upstarters didn’t really exist…
