Solar Q&A: Group Buying

Question: “I Live in Monterey Country Club in Palm Desert (CA). 1,300 homes. Would it be practical to replace all present units with solar shingles?

Answer: As a matter of fact, purchasing solar systems in bulk can be the most cost effective way to purchase. The key will be to pool your resources and negotiate a bulk rate from suppliers and installers.

Photo Credit: jsbarrie

One way to look at it is to compare the difference in price between commercial and residential solar systems. Obviously the average commercial solar power system is much larger than the average, single-home system. Residential systems have typically gone for anywhere from $8-$10 per watt installed. Commercial systems on the other hand have gone for $5-$6 per watt.

By organizing your country club or neighborhood you can save a good amount on up-front costs, thanks to simple economies of scale. Being able to purchase such a large solar array enables a better payback period and a higher return on investment. This is something that commercial entities have been enjoying immensely over the last several years, but residential purchasers have not — hence the advantage of group buying.

What our reader is asking is actually a growing phenomenon. There are even organizations, such as Neighborhood Solar and One Block Off The Grid (1BOG), that have thrived off that very notion. There are plenty of examples of communities banding together to save on solar.

Collective purchasing power can achieve prices well below the going rate. This is a very effective and often under-recognized way to save on solar systems. Many solar companies — suppliers, installers, etc. — are more than happy to work with large groups, especially those as large as our reader’s 1,300. If everyone installed just a 1 kilowatt system, you’d have a community array of 1.3 megawatts — something to put many commercial arrays to shame.

Still, in a community with over 1,000 homes, planning will be important: particularly in lieu of existing state and federal incentives, the stimulus package, net metering rules, and the many other variables that influence initial and long-term costs and savings for a solar electric system. For this reason, a large group such as homeowners in a country club setting may wish to hire an energy consultant — a field growing in the wake of stimulus monies, increased rebates, and complicated tax laws and policy.

The choice between solar shingles and solar panels is something to consider. Solar shingles are generally considered more aesthetically pleasing: an important trait for many neighborhood associations. They are also usually cheaper to purchase, but sacrifice efficiency at the same time. Solar panels may be more expensive, but with the group savings may be worth the extra cost to garner more power.

Now there is no way to completely avoid the up-front costs of solar, but it is hard to get more practical than in a sunny California desert city and with the advantage of group buying power. To our friend in Palm Desert and all our readers, don’t hesitate to speak with one of CalFinder’s certified solar installers for free estimates and to learn more about group buying in your area.

Posted on May 6th in Going Solar by Dan.