Solar Energy Book:

How to choose the best solar system and financing offer for you
- excerpts -

Excerpt :
!hy is e"erybody so excited about solar#
In short: it is a secure, highly profitable investment at zero cost. That means there is no need to
spend money on this investment in order to enjoy the profits. Seriously! Oh, by the ay, it helps the
planet too! ! and creates local jobs!
Imagine somebody offering you this deal: invest nothing no and enjoy secure revenues for the
ne"t #$$ years, hile improving the economy and the environment at the same time. %ould you
turn this offer don& Sound too good to be true& It isn't. Solar energy is that good!
$he re"olution is here
The (reen )evolution. *ut this revolution is not about the planet or the environment, even though
that is a by+product. This revolution is green as in dollar green, money green. It,s all about -O.)
money.
%e continuously e"perience revolutions in communications and information technology. Our entire
virtual orld as created ith its on mar/et, its on economy. 0ortunes ere made and lost
because of the magnitude of the process and the fact that no one e"pected it. The Internet as a
1blac/ san2.
$he %black swan theory% or ,theory of blac/ san events, is a ,metaphor, that describes an event
that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact
ith the benefit of ,hindsight,.2 Solar photo voltaic 3or 1pv24 is a blac/ san in the global energy
and financial mar/ets. It is a game changer. *y being democratic, scalable and cheaper each year,
the technology ma/es e"isting concentrated energy generation business models obsolete. The /ey
ord here is 1scalable2. This means systems can be designed as small or as large as needed to meet
the e"act energy demand of a building or facility. Therefore, systems can be installed on the
property, here the energy is consumed, eliminating the need of transferring electricity. This saves
costs, energy loses, and ma/es the energy supply more robust and stable. This is referred to in the
industry as 5istributed (eneration 3or 15(24.
6 5( energy project is defined here 7in the boo/8 as a project here solar pv systems are installed
on site to meet the internal energy demand of an organization. 9nergy generated on site is typically
consumed on site. Systems can also be grid connected to ma/e sure electricity is available at night
and to e"port the surplus of energy bac/ to the grid. :oever, the main assumption is that the
energy from a 5( system is to offset your demand.
The above e"cerpt is from 1:o to choose the best solar system and financing offer for you2, a
solar energy boo/ e"plaining the ins and outs to the every day user. It is a step by step guide
shoing people ho solar is beneficial for them, the process of going solar, and the /ey aspects of
solar financing.
9boo/ available on 6mazon. ;ore information, including revies and a free chapter, can be found
here: http:<<.hienergypeople.com<solar+energy+boo/<
Excerpt &:
'() sooner or later e"eryone will ha"e solar* So what#
It really is a really big deal. *efore you /no hy it,s such a big deal, you have to /no the big
secret! )eady& O=, here it is: 9>9)(- IS 0)99! That,s right. It is! >ot only solar and ind
energy, but oil and<or coal are also basically free.
The gas or electric bill -O. pay are costs that are only related to the harnessing and using of the
energy. Traditionally, *ig .tility or/s li/e this: the facility e"tracts energy in the form of fossil
fuel 3but also reneable energy ? thin/ about a huge dam4, converts it into electricity and then
transmits it to consumers. 6ll of these activities re@uire large capital investments, because
traditional poer plants are incredibly e"pensive, AB$$; and more. .tility business models ere
able to convert those costs into fairly affordable monthly payments for thousands of consumers. So,
these facilities recover their money from you, by sending you a monthly utility bill. ;y @uestion is,
ho old is your poer station& 6re you still paying for infrastructure that as paid off long ago&
5istributed generation also re@uires capital investment to purchase technology. :oever, the
investor is 6CSO the consumer. Instead of sending money to finance another investor's return, the
consumer recovers his on capital e"penditure and invests in his on assets.
Dosts related to harvesting energy are typically monopolized, concentrated and managed by global
organizations. 9nergy prices are then controlled by the global mar/et and influenced by factors such
as currency e"change rates, the stoc/ e"change, and global politics. *ecause these costs are
operating e"penses, they are generated continuously and infinitely.
On the other hand, a distributed energy harvesting technology, li/e solar, can be localized and
oned by the consumers. Once installed, the costs related to the energy systems are defined and
fi"ed. -our energy bill is no part of your capital e"penses and energy becomes an asset, not a
liability. Once fully paid, the energy systems continue to harvest energy, ma/ing the energy to run
your business and<or home 6*SOC.T9C- 0)99.
:ere is the *ig 5eal: instead of supporting energy companies ith your money, you no have the
opportunity to support yourself and to ma/e your money start or/ing for you!
Sounds "ery nice and kinda Star $rek but it%s too expensi"e*** isn%t it#
>o, it,s not. In E$#B, rooftop solar energy reached grid parity on several mar/ets in the orld or, to
put it another ay, the cost of energy generated by rooftop solar as the same or loer than the cost
of energy delivered by the utility company. ;oreover, costs of solar ill continue to drop hile the
grid energy costs ill continue to rise.
6 major driving force to this is a phenomena called 1pea/ oil2. 1Fea/ oil is the point in time hen
the ma"imum rate of petroleum e"traction is reached2. The only debate no is hen pea/ oil ill
or did occur. Some researchers claim it as in E$$G or E$$H. Others claim it ill happen by E$E$.
>evertheless, pea/ oil is a fact. (roing oil demands from emerging economies 3Dhina, India,
*razil4 and a falling supply ill definitely result in rising energy prices. The only @uestions are ho
big of an increase and ho soon ill that increase occur& Some reports suggest Ithe increasing
price of oil... is li/ely to reach AG$$ a barrel by E$J$...I
6nother driving force is the economies of scale. ;ass production allos for substantial reduction of
the unit cost 3and price4 of goods. The same economic principle responsible for cheaper, more
poerful computers each year, is no driving the efficiency and pricing of solar panels. *ecause
solar panels are standardized, easy to transport and install, they can be purchased from any place in
the orld and delivered to site. So the supply of panels is a globally competitive mar/et, just li/e
microchips or CD5 monitors. The more a company manufactures and sell panels, the cheaper the
unit price can be. Donse@uently, the cheaper the price, the more it can sell.
Freviously, solar energy re@uired heavy government support because it couldn,t compete ith grid
electricity. Fanel and inverter technology as not efficient enough and unit costs and prices ere to
high. >o, than/s to support programs, li/e the one in (ermany for e"ample, a substantial mar/et
has been created, alloing solar technology to mature and e"pand rapidly. These support programs
got the ball rolling and no solar energy is a cost efficient alternative on several mar/ets. 6s solar
prices continue to fall hile grid energy rises, more and more energy mar/ets ill adopt solar.
Solar energy might still be more e"pensive than the energy generated by a coal fired or nuclear
poer plant. *ut, this energy then has to be delivered from the poer station to consumers. Once
those costs are included in the electric bill, solar can already be a cost efficient solution. Installing
rooftop solar does not re@uire using transmission or distribution poer lines and covering related
costs.
The above e"cerpt is from 1:o to choose the best solar system and financing offer for you2, a
solar energy boo/ e"plaining the ins and outs to the every day user. It is a step by step guide
shoing people ho solar is beneficial for them, the process of going solar, and the /ey aspects of
solar financing.
9boo/ available on 6mazon. ;ore information, including revies and a free chapter, can be found
here: http:<<.hienergypeople.com<solar+energy+boo/<
Excerpt +:
Energy ,ssets "s* -iabilities
%hen discussing solar financing, one very important thing has to be pointed out: solar pv systems
are assets. They produce an essential commodity. The generated electricity has a value and can be
sold or used to offset your on consumption. Therefore, it constitutes revenue for the oner in cash
terms. 6 car loan payment is a liability 3unless you are a professional driver4. It only generates
costs. 6 credit card payment is definitely a liability. -ou are financing purchases that don,t generate
income, only costs. They are cash negative.
Installing a solar system is cash positive. 6fter ma/ing the loan or lease payments, there is money
left from savings from your utility bill or from selling the e"cess generated energy. The solar
systems pay itself off and generates e"tra cash.
9nergy generating assets in a distributed generation model are secure investments ith no mar/et
ris/ because you are investing in your on assets. The demand for energy alays increases and
installing a pv system means there is no middle man 3a utility company4 ho can disrupt your
delivery of energy.
In short, financing solar pv is financing assets, not liabilities. Therefore, the operation is cash
positive for the borroer. *etter cash flo means loer ris/, secure repayment, and an opportunity
to reinvest. Solar financing is the solution that can provide a boost for the economy, on a local and
the global scale.
The above e"cerpt is from 1:o to choose the best solar system and financing offer for you2, a
solar energy boo/ e"plaining the ins and outs to the every day user. It is a step by step guide
shoing people ho solar is beneficial for them, the process of going solar, and the /ey aspects of
solar financing.
9boo/ available on 6mazon. ;ore information, including revies and a free chapter, can be found
here: http:<<.hienergypeople.com<solar+energy+boo/<
Excerpt .:
How much do you really spend on energy#
:o your day to day decisions affect the climate is hard to access and measure. :o your day to
day decisions impact your finances is significant, direct and D6> be measured precisely. Our focus
ill no be on money, -O.) money.
If you are connected to the grid, each month you pay a bill for the consumed energy. The prices
might be more or less volatile, but long term they tend to increase. 6s long as you consume energy
from the grid, you ill to pay for it.
Cet's asses ho much money you really spend on energy, starting ith electricity. 9ach month you
send money to a utility company for your electricity bill. Then, there is the energy used for heating
ater, to /eep your place arm or cool 3space heating and<or cooling4 and heat used for coo/ing.
0inally, there is transportation. The fuel you buy to drive a car.
6dd the amount of your electric bill, natural gas<propane bill, and estimate the money you pay for
gasoline<petrol. :ere is an e"ample:
electricity #$$
natural gas #G$
car fuel E$$
total per month JG$
>o, multiply this by #E, for annual e"penses. Then by E$, for E$ years:
JG$ " #E K G,J$$
G,J$$" #E K #$L,$$$
This is the amount lea/ing out of your poc/et, assuming energy prices ould be fi"ed. Cet,s assume
energy prices increase by EM each year and the amount out of your poc/et just jumped to #B#,E$G.
In E$#B, energy prices rose by at least BM depending on the fuel type and country.
>o do the math for your home or your business. 5id you e"pect that result& >o imagine never
having to pay for energy again. %hat ould you do ith that money& Fay off the mortgage& (o on
holiday& 9"pand your business& Start a business&
It IS possible. 9ven ith today,s technology. Solar panels can generate electricity to poer, heat,
and cool your house and provide energy to drive your electric car. >o, imagine generating more
energy than you consume and selling the surplus. Frovided you have enough space for the panels
and enough sunshine, you could become a solar farmer and live off the solar energy.
The above e"cerpt is from 1:o to choose the best solar system and financing offer for you2, a
solar energy boo/ e"plaining the ins and outs to the every day user. It is a step by step guide
shoing people ho solar is beneficial for them, the process of going solar, and the /ey aspects of
solar financing.
9boo/ available on 6mazon. ;ore information, including revies and a free chapter, can be found
here: http:<<.hienergypeople.com<solar+energy+boo/<
Excerpt /:
0oing solar means con"erting liabilities into assets
In general, the process of going solar described here 7in the boo/8 is about converting liabilities into
assets. -ou shoed yourself 7in the previous chapter8 you have the money for energy already. -ou
already spend it every month. 6 utility bill is a liability. 6 drain to your poc/et. -ou pay each month
to stay in the game. It doesn,t move you forard, and each year you pay more as grid energy gets
more and more e"pensive.
:ere is an alternative: a solar pv generation system ith financing solutions that fit your needs. 6
solar pv system that is installed to meet your energy consumption and the value of that investment
is repaid over time, instead of one upfront payment. This allos you to substitute your monthly
utility payments ith repayment of the solar pv. Instead of an electricity bill, you are paying off
your system. 6nd just li/e a car note, there ill be a final payment. 6fter that, you have completely
free energy!
*y investing into your on energy source, you can have free energy. 9nergy itself doesn,t cost you
anything. Sunshine is free. :aving payed for the e@uipment, you have assets and each month they
generate value: energy that can be used or sold.
!hat is the best time to go solar# Should 1 wait for the solar prices to go down#
The best time to install solar and stop paying a utility bill as, @uite fran/ly, yesterday. The second
best time is no. It is true that solar panels are a lot li/e microchips. They get more efficient and
cheaper each year. So, yes, buying panels G years from no ould probably result in a loer price.
*ut, you can go solar right no, ith no upfront cost, and reducing your monthly bill. Is it orth
paying the ever increasing costs of grid energy for the ne"t G years&
The above e"cerpt is from 1:o to choose the best solar system and financing offer for you2, a
solar energy boo/ e"plaining the ins and outs to the every day user. It is a step by step guide
shoing people ho solar is beneficial for them, the process of going solar, and the /ey aspects of
solar financing.
9boo/ available on 6mazon. ;ore information, including revies and a free chapter, can be found
here: http:<<.hienergypeople.com<solar+energy+boo/<