[wizr]

I once worked for an energy company that provided many different ways to conserve, some of them free.

The ecological savings also earned them money. For handing out a low flow shower head, they received a huge return from the government. As I remember, it was based on the amount of water saved over a 10 year period.

This could be based on the same idea.

You sign a contract for their services, plus the $500 set up fee. You're locked in.

1. IMHO, they receive a dividend from the government for each customer taken off the grid.

2. Their unit costs are much lower than the costs passed on by solar unit sales companies.

3. They have a guaranteed income, from the contract.

4. They have no service upkeep, no line crews, no generation needs, and the money just rolls in.

[Uncledave]

I think you summarize their model pretty well, but I susepct they don't get some special new fee from the govt for taking somebody off the grid. I think they simply pocket whatever tax goodies are available on a state-by-state basis on the equipment.

Also, maybe they can take advantage of the Production Tax Credit given to renewable energy generators. If they can claim all their rooftop installtions as one total "system", then maybe they can claim a PTC benefit. The thing is, they're selling the power at the retail price, whereas other PTC benefactors (eg wind farm owners), sell power at a negotiated rate to the utility in a Power Purchase Agreement. It's around 1/2 the price of retail.