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Sep 11 2016
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Will Tesla Shake up Solar Roofing?

By Tesla Solar Roof: Everything You Need to Know No Comments

We’ve seen this before. Last year, Tesla CEO Elon Musk announced that his electric vehicle company would branch out and start supplying a home battery market that was—and continues to be—just scratching the surface of its immense potential. Now Musk is going after solar roofing, the kind that replaces traditional roofing material instead of sitting on top of the roof.

Solar.Com contacted Chris Fisher, a product manager with building materials manufacturer CertainTeed, a longtime producer of integrated solar roofing and soon-to-be Tesla competitor. Chris offered a quick rundown of the product category and what lies ahead for building-integrated photovoltaics (BIPV).   


Solar.com:     How long has integrated solar roofing been around? And where could I go to see an example of what it looks like?

Chris Fisher:    Integrated solar roofing has been around since early 2000. Since then, many well-known companies have released integrated solar roofing products including BP Solar, Dow Chemical, GE Energy, SunPower, and CertainTeed. Pictures of CertainTeed’s Apollo II and Apollo Tile II systems can be found at www.certainteed.com/solar.

Solar.com:    What are some reasons a homeowner would choose integrated solar roofing over conventional solar panels?

C.F.:     Integrated solar shingles or tiles blend with the roofline, giving the appearance that the system is a part of the home as opposed to a set of equipment bolted onto the home. Integrated solar roofing also installs without penetrations to your roof system, so there is a significant reduction in the risk of leaks. Finally, integrated solar roofing is typically independent of the surrounding roof system, so the traditional roof can be replaced while the solar system remains. This allows solar to be installed on homes where the 25-year lifetime of the solar system may outlast the current roof.

Solar.com:    Electric vehicles are disrupting the traditional auto market. Smart home technology is poised to disrupt the market for ordinary home appliances. Is residential roofing ripe for disruption?

C.F.:    Integrated solar roofing products are the most radical technology disruption that the roofing industry has experienced. However, since there will continue to be a need for traditional roofing (e.g., roof areas with poor solar access) the real disruption is less about the technology and more about the installation market. Who is best suited to install integrated solar, roofing contractors or solar integrators?     

Solar.com:    What was the first thought that crossed your mind when you learned that Elon Musk has sights set on the solar roof as a new market for Tesla?

C.F.:    It is a validation of the value of integrated solar roofing. For homeowners, it provides a way to ‘go solar’ while maintaining the aesthetic of their home and preserving the integrity of their roof. For installers, it provides a way to differentiate themselves in a competitive marketplace and service two significant portions of the market: those who desire better aesthetics than traditional solar can offer, and those with an aging roof that doesn’t allow solar to be installed.

Solar.com:    What would it mean to be a direct competitor with a company like Tesla, a company with a strong technology brand that’s in the process of acquiring the biggest residential solar company in the US, SolarCity?

C.F.:    We’d welcome a company like Tesla into the integrated solar roofing market. Fundamentally we come from very different places. CertainTeed has a long history of manufacturing and supplying building products to the North American construction industry while SolarCity has a commanding presence in the solar installation and finance industry.

Solar.com:    What are some of the challenges that a company with a limited history in residential solar and no history in home construction will face getting into the market for solar roofing?

C.F.:    Foremost it is the understanding of roofing materials, systems, best practices and warranties. This understanding is essential to protecting the integrity of the roofing system that is below – or in the case of integrated solar roofing, adjacent to – the PV [photovoltaic] system. Another challenge is developing relationships between those responsible for the roofing activity and those responsible for the solar activity. Strong working relationships would help resolve any performance issues that arise after the solar system is installed and prevent oversights that could lead to the voiding of a homeowner’s roof warranty. Also, integrators could generate leads from ‘partner’ roofing contractors who have new or potential customers with an interest in solar!

 

Sep 09 2016
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SolarCity Loan Review: Small Step in the Right Direction

By Solar Loans: Financing Rates, Loan Terms, and More No Comments

For the past two months, SolarCity news coverage has focused on Tesla’s acquisition bid, drawing attention away from SolarCity’s reintroduction of a loan financing offer for residential solar customers. One in five SolarCity customers are now choosing the loan over the lease. That’s a relatively small number considering the obvious financial benefit that customers get with the loan that doesn’t come with the lease: an installation tax credit worth 30 cents on the dollar.

In fact, the share of SolarCity customers now opting for the new loan (20 percent) is not much higher than portion that selected SolarCity’s MyPower loan product last year (13 percent) before MyPower was phased out.

Analysts expect that loans will surpass leases and other third-party financing vehicles next year. So why haven’t more SolarCity customers gone with the new loan so far? Though it has more financial benefits than the lease and the discontinued MyPower offering, the underlying value of the loan doesn’t stand out among the most competitive bids in residential solar.

Better than a solar lease

Two things jump out about the loan offering as described in a June 2 SolarCity press release, one of the few publicly available documents that describe the available financing terms: (1) most customers will have much higher monthly payments than the amount reported by SolarCity, and (2) customers can find similar interest rates elsewhere.

The announcement says fixed payment options can be as low as $50 a month. This is based on the assumption that the loan amount is $7,680 – a figure that’s about $10,000 less than the price of an average-sized solar installation in the US at this time. If you’re buying an average-sized solar installation, the lowest monthly payment you can get from a SolarCity loan is $115. And the monthly payment will be considerably higher if you want the lowest possible interest rate.

SolarCity advertises a 2.99% interest rate for 10-year loans and a 4.99% interest rate for 20-year loans. First off, if you don’t have an excellent credit score, expect to be quoted a higher interest rate. But even if you qualify for SolarCity’s best rate, be advised that you can shop around for a comparable loan on a lower-priced solar energy system. NC State University’s DSIRE database shows 45 residential solar loan programs at the state and local level, and there are many more private offerings that are not subsidized by government incentives.

Price premium drives down value

If a homeowner overpays for a solar installation, there’s little consolation in finding the most competitive loan on the market. You’re still paying more than you have to for electricity, which is a still commodity, no matter how strongly you feel about one company brand or another.

Solar.com has reviewed multiple SolarCity quotes since the start of 2016. In each contract offer, whether the system size is 2 kilowatts (kW) or 12 kW, the price pencils out to a steady $4.22 per watt. That’s an improvement on the SolarCity pricing we wrote about one year ago, but it’s still significantly higher than the going rate of $3.50 that other installers charge on profitable projects. (See comment from Barry Cinnamon in the linked article on installation prices.) On an average-sized system, the difference amounts to $3,600. Add in financing costs, and the difference can be $5,700 or more.

Compare and save

Homeowners who use the Solar.com marketplace to save on the price of installation are finding a large and growing network of installers offering low-interest loans. This makes it possible to go solar with no money down, get immediate savings off the monthly electric bill, and claim the 30 percent federal tax credit for solar energy systems.

It would take hours to contact a dozen solar installers yourself and compare all of their proposals. Getting a side-by-side comparison of all the solar loans that are now available would take even more time. At Solar.com, installers compete for your business and we provide independent analysis to help guide you toward the bid that’s right for you.

It’s easy. Start now to discover the best value on rooftop solar with Solar.com.