A new incentive to go solar in the Philadelphia area


Jul 19 - McClatchy-Tribune Regional News - Diane Mastrull The Philadelphia Inquirer



Is going solar proving too daunting -- with too many installers to choose from, reliability hard to judge, and prices all over the place?

For Philadelphia-area homeowners and small businesses, there's an alternative to going it alone, starting Monday.

Consider it matchmaking for the solar-inhibited -- with a chance to save some money.

 But you'll have to hurry. There's an element of speed-dating involved.

The solar-inclined have three months to sign up for a 15 percent discount on a system and free educational advice through the latest phase of a program being rolled out across the country by One Block Off the Grid, a for-profit San Francisco broker.

The company, more commonly known as 1BOG, launched a similar initiative in South Jersey last month.

The discount is before other cost breaks are factored in, such as state grants and the 30 percent federal tax credit available on purchases of solar systems.

In each of the 16 markets where 1BOG is offering its educational-brokering program, it has secured a group rate from a solar company it has selected to do the installation work for program participants. For Pennsylvania, it has chosen Mercury Solar Systems L.L.C., which bought Eos Energy Solutions L.L.C., of Philadelphia, this year. For South Jersey, 1BOG has picked Freehold, N.J.-based Trinity Solar. Those companies must pay a referral fee of 25 cents per watt installed to 1BOG upon signing contracts with customers.

Before selecting Mercury and Trinity, 1BOG spent about six weeks vetting installers serving Pennsylvania and New Jersey, evaluating their installation practices, warranties, and financial stability, said Dave Llorens, 1BOG's chief executive officer. Typically, requests for proposals are sent to the top 10 installers in a region based on volume, Llorens said.

Llorens, an electrical engineer, founded 1BOG in late 2008, motivated by the customer confusion and reluctance he often encountered while working in the solar industry.

"You've got this hugely complex purchase process, and hugely complex rebates, incentives, and technology," Llorens said in an interview Wednesday.

Llorens said each 1BOG participant was assigned a "solar adviser," who checks out their roof through satellite map technology and explains the benefits of the program, the expected return on investment, and the financial obligations.

The program does not require that participants relinquish ownership of their solar renewable-energy credits (or SRECs), which can be sold on the market. The typical Pennsylvania homeowner can expect to make close to $2,000 a year through SREC sales, Llorens said.

Participants also are eligible for zero down, interest-free financing for 18 months.

If the installers 1BOG has selected are not offering the specific brand of solar system a customer wants, those people are free to continue their solar shopping on their own.

Nationwide, 1BOG claims credit for inspiring the installation of 1,000 solar systems.

Medford resident Eric Hartman has signed up for a 10-kilowatt, $33,000 system through 1BOG.

"What motivated me is what was going on in the gulf," said Hartman, an eye doctor.

The arrival of 1BOG was welcomed by the state's environmental secretary, John Hanger.

"One Block Off the Grid is consistent with what we've seen -- the PA Sunshine Program and the stimulus money we've put into solar has made Pennsylvania an attractive solar market," Hanger said. "We welcome them here."

A more lukewarm reaction came from Ron Celentano, a Wyndmoor solar-industry consultant and president of the state division of the Mid-Atlantic Solar Energy Industries Association. His was more from not knowing enough about 1BOG, he said.

"I'm always encouraged or want to encourage all different types of [solar-financing] models that come out," he said. "This could very well be a good one, but it should come with skepticism at first."

1BOG deal for Phila. homeowners

For those with currrent average monthly energy bills of $200 who install a 7.56-kilowatt solar system:

Average monthly savings: $119.52

Number of years to repay: 5 years

Increase to home value: $28,683.87

Net cost: $20,234.49

SOURCE: One Block Off The Grid

Contact staff writer Diane Mastrull at 215-854-2466 or dmastrull@phillynews.com.

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