Introduction
As the climate rapidly declines, local governments throughout the US have come up with clever ways to drive eco-friendly habits. And as the name suggests, their efforts have evolved beyond appealing to the individual to incentivizing entire groups of people and communities. Initially, this benefit might seem like something only businesses can partake in, but luckily, so can you.
What is a Solar Group Buy?
Solar group buys, or solar co-ops, refer to a community of individuals – such as homeowners – coming together to invest in solar energy. Those taking part in a solar group buy seek to save on the total cost of solar installation by purchasing their equipment in bulk.
Why Are Solar Group Buys Necessary?
While solar has been around for many years, many people are still heavily reliant on fossil fuel energy. As such, solar production – like solar installation – remains a fairly new idea that many find difficult to navigate and transition into. Reversing the harsh effects of climate change require everyone to be knowledgeable on the subject, as the two go hand in hand.
Hence, the utility of solar group buys. Solar group buys are a sort of financial incentive hosted by local governments seeking to address the threat of climate change. They connect communities (including business representatives interested in solar investment) with hand-picked solar installers and advocates to push forward sustainability efforts and increase public awareness.
How Do Group Buys Work?
To accomplish renewable energy goals, solar group buy programs combine three vital aspects: education, installation, and financial options.
Solar Education
A local program may offer the group informational sessions to inform them of what it means to have solar energy. This may be done in partnership with solar energy organizations and nonprofits familiar with educating the public on solar. Topics of interest may include what solar energy is, how it benefits the planet, and what the long-term financial benefits of investing are.
Solar Installation
A designated committee handpicks specific solar service providers and educators to attend and offer their products or services to investors. Solar installers, for example, may offer to inspect the group’s site(s) or homes for free. This is to assess the home’s electrical setup and spot necessary repairs before installing solar panels. Moreover, an inspection will further save on solar costs, because without it, a solar setup will become more expensive down the line in the form of repairs and upgrades.
With regard to upgrades, solar group buys may also stress the importance of an engineer inspection. Unbeknownst to many interested in solar installation, their equipment must be compatible with their home’s electrical system. Quite often, cases arise wherein homeowners have purchased expensive, incompatible panels without getting an inspection from an engineer. Engineers can spot safety issues with the device and improve its overall efficiency.
Financial Options
Despite the strategy of collective buying, individuals participating in a solar group buy may want to explore financing options. Informational sessions will seek to inform the attending group of a variety of options, the most sought-after being a loan. Taking out a loan can save between 40-70% over the lifetime of solar panels and can be received through either the bank or a solar installer.
Alternative options include the power purchase agreement (PPA) or the leasing of the equipment. These options allow you to receive a solar system while paying a fixed monthly rate, with no money down in certain cases. However, be mindful that tax incentives only apply to those that purchased their solar system.
Conclusion
Solar group buys connect interested buyers with local solar energy advocates, installers, and other solar experts to cut costs on equipment. All parties benefit financially from the investment while increasing public awareness and supporting sustainable development. Through this program, the ultimate goal of reversing climate change gradually becomes more of a reality.
