I just read about
SunEdison over at
Treehugger and I thought it sounded like a neat
Product Service System(PSS). PSS's are businesses that charge a fee for the usage of a product or service and the consumer just passes them along when they no longer are using them. Since, PSS's continually find homes with new consumers there is far less waste involved, and they can make for great green business models. Follow me below the flip to find out how SunEdison makes solar power affordable for green minded businesses...(Damn, I sound like an ad.)
I'll let them explain it in their own words:
SunEdison pays for, installs, owns and operates solar installations. Customers pay a fixed rate that is at or below current electricity prices for the solar electricity generated from these panels for ten years.
SunEdison simplifies solar for public, private, and nonprofit organizations by offering a finance and service model that allows customers to buy and use solar electricity generated at their facilities without capital investment.
I think that is the kind of green business innovation that we really need right now. Solar energy requires a significant capitol investment, and this would be great way to ease that burden and increase the availability of renewable energy.
They have a great FAQ up, and it answers my two most pressing questions:
What happens after the 10 year contract is up? Host customers can re-sign a solar services agreement for 10-20 years, or SunEdison will remove the system at its own cost.
What happens if the system generates more power than we need?
Many utilities have "net metering" which means that your meter spins "backwards" if you generate more power than you need. The utility will credit you for that electricity. In most cases, we will install a system where you can use all of the solar power generated - so you can maximize the benefits of signing the solar services agreement.
I wish they offered some sort of lease-to-own or a buy out option at the end of the contract, but otherwise I think this is a great business plan. I think it's cool that they let you sell the excess energy too, but you do have to pay for grid energy if your system doesn't produce enough energy.
Posted to Daily Kos Environmentalists.