BUYING SOLAR IN BULK: SAVE MONEY, BUILD COMMUNITY

Buying in bulk has been part of the environmental movement since the beginning. It is now helping to make solar energy affordable.

For many who would like to go solar but cannot afford it, the combination of rebates, tax credits, and bulk purchasing makes solar conversion affordable.

The range of installing solar runs from about 8K to 45-50K, not figuring in tax incentives and rebates. These vary from state to state; New York State ranks high in renewable tax credits. ( http://www.dsireusa.org for NYS information) Buying solar in bulk cuts costs down from 5% to as much as 20%. The more purchased at one time, the greater the savings. One DC community reports a whopping savings of $300,000 through purchasing solar in bulk.

There are essentially two ways to buy solar in bulk: through a Co-op or through a for-profit company that acts as a middleman to negotiate deals for communities with solar companies, such as 1BOG recently featured in NYT Sunday Magazine.

Whether one goes with a Co-op or a Company, the single thing to know about Bulk Solar is that putting together the bulk purchase is fairly complex and takes a lot of time.

The essential steps for putting together a solar bulk buy are:
Forming the purchasing community parameters
  City block, City neighborhood, Town, etc.
  Must be physically close. Distances between houses, as we have in rural areas,
adds to costs of installation and could pose an obstacle to bulk purchase with a company.
Education of homeowners:
  Solar Energy Options
  How It Works
    Energy-wise
    Money-wise
    Tax-wise
  Renewable Energy Credits
    Federal & State ( http://www.dsireusa.org for NYS)
House-by-house evaluations of energy use, and ideally energy audits for efficiency.
  To determine solar energy needs
  To maximize energy efficiency (save $$)
  (Getting this done with a bulk discount may also be possible.)
House-by-house solar assessment (by qualified expert).
  Will solar panels work for your house?
  How many do you need?
  Where will they go?
Securing financing
  Home equity loans
Working out the bulk purchase with homeowners.
Researching the solar companies to negotiate the best deals.
Maintaining the group’s solar system.

Benefits
—— Saves money, sometimes a lot.
—— Builds community spirit.
—— A great way to “normalize” a green industry: the more people use solar, the more it becomes the norm.

Challenges
—— Takes a lot of time to educate, assess, coordinate, negotiate.
——  Joint ownership of the system requires a number of details to be worked out regarding paying for maintenance of the system.

The Co-Op Approach
A Co-Op approach means that someone in your community essentially volunteers to educate the homeowners, scheduling and coordinating the assessments, evaluations and installations, as well as negotiating the contracts with the solar company. They also need to know the federal and state policies regarding renewable energy credits. Some sort of community website is necessary for coordinating, educating, Q & As, and general communications. (See attached example, “How It Works,” from DC Common Cents Solar Co-Op.)

But remember: The community volunteers also know you, the community, the neighborhood, which is a great advantage.

As with a food co-op that becomes part of the long term life of the community, so does a solar energy Co-Op. Because the system is jointly owned, one needs the Co-Op to continue to be there as a resource for maintenance and service issues, as well as adding more new members. So a Solar Co-Op is a long term commitment for all.

The up side is a terrific community spirit and a new neighborliness. And from this new spirit, who knows what else may grow?

Going with a Company
The advantages of going with a company are how much time it takes to put these bulk purchasing packages together, and the knowledge about the solar industry that experts bring. They know the good solar companies, the issues, are up on the tax credits and so on.

The downside: All the educational, assessment, negotiating time is now paid for, rather than volunteered, cutting into the cost savings. A community has to agree to share these costs equitably.

One solution is for the community to do the initial educating about solar, and at the point of agreeing to go forward with the bulk purchase, bring the company on board.

Another advantage is an expert outsider can be a better mediator for a community than a community insider. A community may feel more comfortable with an expert professional they can hold accountable for providing the best deal.

And it needs be said that the more viable we make green businesses by using them, the better for turning the whole economy in the sane and sustainable direction. And so while it is money spent, it is also spending that builds a sustainable economy.

Conclusion
Buying solar in bulk works best for physically close housing, and may not be an option for rural communities where the residences are too far apart.

Co-Ops work best for close knit communities or groups of people who are committed to developing community spirit. Since a lot of hours are involved in putting solar bulk together, one good rule for a successful Co-Op is for the community to actively appreciate their volunteers.

Using a professional Company works best for groups of people who may not know each other that well; the experience of coming together to do the right green thing with a professional will still build community spirit. Using a professional company also works for groups that want to support building a green economy and who have the means to do so, and who simply do not have the hours and hours of time it takes to put these deals together.

The most important thing is to appreciate how much time is involved in creating these bulk deals. But, the savings in buying in bulk are often what makes solar possible to do, and making sustainable choices possible makes all the difference toward creating a world we can live in.