Lease Own
vs
●
Solar is most expensive—when it’s free.
Solar Made Simple.
Pro + Cons
Tax Credits
Solar PV System Purchase
20 Year Solar Lease/PPA
You get up to 65% in available State and Federal tax credits.
Your tax credits will go to out-of-state solar lease/PPA company.
Cost Savings
Your energy cost can be 70% to 90% cheaper with electric bills
as low as $18.
Energy cost 10% to 20% cheaper but include an obligation to pay
the remaining 80% to the lease/PPA company for up to 20 years.
Ownership
Payback on your purchased PV system takes 4 to 5 years, then
you OWN it. For 20+ years your electricity is FREE.
Require long term contract with combined payments totalling
up to 60% more than purchasing the system. Require end of term
buyout, new contract, or system removal.
Property Value
A PV system will add value to your property.
A study by National Renewable Energy Lab found that homes
with solar sold 20 percent faster than non-solar homes and
fetched a 17 percent higher asking price!
Your solar lease contract may make your home more difficult to
sell–you will have to qualify a buyer willing to assume your lease
agreement (they must have an excellent credit rating and agree
with the terms) or you’ll pay an early termination fee.
PV systems are virtually maintenance-free. With no moving
parts and manufacturer warranties up to 25 years—just an
occasional rain or rinse with a garden hose will keep your
system running at peak performance.
Maintenance agreements are typically included but don’t be
fooled; there is a maintenance fee hidden in each monthly
payment. PV systems are virtually maintenance-free.
Monitoring
KumuKit™ systems include LIFETIME internet-based monitoring
at no additional cost.
Check a solar lease company’s monitoring service track record
before signing up; user’s online comments are not all favorable.
Bottom Line*
KumuKit™ System Purchase
Maintenance
Up-Front Cost
20 Year Solar Lease/PPA
$0 (with our Same-As-Cash Program)
$0
35% State: $10,500 + 30% Federal: $9,000 = $19,500
$0–your tax credits go to large out-of-state investment companies.
$3,000
$600
$7,500 (after Tax Credits and your 1st Year Energy Savings)
$47,940 Total Lease Payments–more than the system’s original cost!
Electric Bill
before solar: $250 | after solar: $18 (one electric bill)
before solar: $250 | after solar: $200 (two bills: lease + electric)
Net Energy Savings
$74,060 after 20 years–with more savings to come.
$36,620 after 20 years–need to negotiate ownership or new lease.
Tax Credits
1st Year Energy Savings
Net Cost
* These estimates are for a $30,000 Photovoltaic PV System for the purpose of comparison.
Solar Purchase or Local Financing
Out-of-State Solar Lease/PPA
TA
CR
E
vs
E
MA
IT S + R E V E N U
LA
IN
LI
NST
ALLE R
Renewable energy is critical to Hawaii’s environmental
sustainability, but just as important is our financial sustainability.
When you purchase or locally finance a photovoltaic system,
your 65% in combined State/Federal tax credits as well as lifetime
energy savings remain in our local economy as disposable
income. A $30,000 PV system purchased or locally financed
will generate as much as $19,500 in tax credits and $74,060 in
energy savings over it’s lifetime. This money remains in our local
economy as disposable income.
ER
PAY
LO
C
ED
LO
C
CR
LO
CA
AX
LT
D
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IT
+ RE
VE NUE
TAX
ER
PAY
A
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not sustainable
X
A
sustainable
ND
LE AS
I N G CO
In Contrast, when a Hawaii photovoltaic system is owned by an
out-of-state lease or PPA company, State/Federal tax credits and
long term monthly lease or PPA payments leave our local economy
headed directly out of state. Each $30,000 PV system financed
and owned by a lease or PPA company requires a cash payment
of $7,300 from the state of Hawaii to the out-of-state lease/PPA
company. $10,000 in Federal Tax Credits and $47,940 in estimated
long term payments also leave our State’s economy, directly to the
out-of-state lender.
CR
SO
E EQU
I
OM
N
GTE
P
PPA
AL LOA
ON
CASH
ID
ER
-STATE SO
LA
T-OF
RL
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RM
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P
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A
RC
TC
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A
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P
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O
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TY
SE
LON
GR
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AS
NO
Getting Your Best Return On Investment
OW
20
R–
A
L
RS TRADITIONA
L
YE A
When considering a solar purchase or local finance options, get as close
to the sweet spot as you can. The closer you are to the sweet spot, the
cheaper your energy is and the faster your system will pay itself off.
When you spread a PV system’s after tax credit purchase cost or lease
payments over 20 years of energy production, you get the levelized cost
of energy. Compare the levelized cost of energy for each option:
ty
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as low as
4.5¢/kWh
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22¢–30¢/kWh
current fluctuating
cost of energy
A
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No
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as high as
45¢/kWh or more
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As you would expect, cash is the best investment. It may be surprising, however, that financing
with an equity, personal loan, or even a credit card, has little effect on the result. Once you are
in the RED ZONE, however, there is very little benefit for you–Solar Leases/PPAs are designed to
benefit outside investors that take your generous tax credits and set you up to pay a mainland
Solar Leasing/PPA Company for your solar electricity on a long-term contract. Once the revenue
streams are in place; that Solar Leasing/PPA Company may be on track to sell out–leaving you
wondering who exactly you’ll be buying your power from in the future.
www.kumukit.com
808-524-7336
NOTE: All numbers used in this brochure are estimates
and may not apply to your specific installation.
Please request a Free Solar Analysis to see how
a KumuKit™ system will work for you.
SOLAR ELECTRICITY
94-428 Mokuola St. #213
Waipahu HI 96797
Contractor #C31046