The Wall Street Journal reports that in the past 9 months, more home rooftop solar systems have been leased than purchased in California. Leasing eliminates the large upfront invesment of solar. Homeowners like the steady monthly payments instead of gyrating utility bills. And solar provides an insurance policy against future utility rate increases. With higher utility rates than much of the country, and declining solar system costs, California home owners save money too.
Smart technologists will continue to look for additional business model innovations to grow the market. How about subtracting high energy costs and adding solar systems to home appraisals? Perhaps mortgages that use part of the down payment for solar? Smart systems that send excess electricity to the grid? Could scalable systems be designed that can incrementally expand one module at a time? With monthly payments, this ‘pay as you go’ solar system has increasing value to the homeowner.
Technology doesn’t sell itself. Home solar is ripe for further business model innovation.