Solar Leasing Expands in Colorado

Colorado homeowners interested in solar power are eligible for good incentives from their utility company and the feds, but even so, the cost of solar can be prohibitive for many people. To provide another option, San Francisco-based SunRun, one of the country’s few solar lease providers, is launching services in Colorado territory.

The way it works:

1. You want solar panels on your roof, giving you the benefit of clean energy and shielding you from price fluctuations in energy you get from your utility. You can’t, or prefer not to, make the investment in purchasing solar, which can cost anywhere from a few thousand dollars to tens of thousands.
2. You sign a 15-20 year contract to make monthly predefined payments to SunRun (or another leasing company where competitors exist). With SunRun, you pay a small installation/startup fee starting around $1,000, though some programs require zero money down. Any electricity you consume above and beyond the amount generated by your solar panels you do still need to pay the utility company for.
3. A solar installer mounts your array. In Colorado, SunRun has partnered with REC Solar, Namaste Solar, and Real Goods Solar for installations. (SolarCity, a solar leasing giant, does its own installations.)
4. SunRun receives the applicable federal and Colorado solar incentives: tax credits, production incentives, etc.
5. Your finances are more predictable and you’re benefiting from clean energy.

If you can afford to finance solar on your own, Colorado incentives and the federal tax credit combine to make it a pretty appealing prospect–you could see the net cost of solar slashed by 40-50 percent or more. Buying a well-sized and designed solar energy system can earn you a great return on your investment. But if your priorities are predictable monthly expenditures and a commitment to renewable energy, solar leasing may be a very good option for you.