Clean Energy Home Options: Top 10 FAQs
As we move towards a more sustainable future, many homeowners are considering clean energy options for their residences. Here are the top 10 frequently asked questions about transitioning to renewable energy for your home.
Q1: What’s the current situation regarding renewable energy for homes?
A: Federal and state laws now require all homes to be renewable by 2045. Utilities have set a goal to convert homes, businesses, and industries to renewable energy by 2035.
Q2: What are my main options for transitioning to clean energy?
A: Your main options are:
- Installing Battery/Solar systems
- Staying with your current utility provider (e.g., SCE/LADWP)
Q3: How quickly can I transition to renewable energy with Battery/Solar?
A: You can become renewable in about 4-6 months by choosing a Battery/Solar option.
Q4: What are the best financing options for acquiring a Battery/Solar system?
A: The best options are:
- Zero-Equipment-Cost plans
- Prepaid Lease (typically the cheapest option)
- Power Purchase Agreement (PPA)
- Outright purchase (with some drawbacks)
Q5: How much can I save with a Battery/Solar system?
A: Depending on your home size (2000-4000 sq ft) or monthly electric bill ($200-$500), you could potentially save $200,000 to $400,000 over 25 years.
Q6: What’s a PPA, and how does it work?
A: A PPA is a 25-year Power Purchase Agreement where you pay monthly for electricity and battery usage. The company owns and maintains the equipment. It includes ten 25-year warranties and guarantees. The cost increases by a fixed 3.5% COLA (cost of living adjustment) yearly.
Q7: What’s a Prepaid Lease, and why is it considered the cheapest option?
A: A Prepaid Lease involves paying for electricity and battery usage for the full 25 years in advance. It has zero percent increase over time, making it the lowest 25-year cost option. It also includes ten 25-year warranties and guarantees.
Q8: How do utility rates compare to Battery/Solar options?
A: Utilities like SCE/LADWP typically have a minimum 10% increase per year, which can significantly impact long-term costs. In contrast, Battery/Solar options offer more stable and potentially lower long-term costs.
Q9: What are the drawbacks of purchasing a Battery/Solar system outright?
A: Purchasing has some disadvantages:
- It costs about $20,000 more than a Prepaid Lease
- You only get a manufacturer’s warranty with prorated replacements
- You need to replace batteries (about $15,000 each) in years 10 and 20
- You’re responsible for maintenance and monitoring
- You don’t get new technology upgrades
Q10: How do I get started with exploring these clean energy options?
A: To create estimates for your specific situation, you’ll need to provide your contact information and a recent utility bill copy (required by CPUC). You can then specify which options you prefer to explore further. For more information or to get started, contact Team Firman at 805-368-3268 or at [email protected].
Remember, transitioning to clean energy not only helps the environment but can also secure your home’s value by creating a modern, digital energy home.
