Pilot Phase of an Affordable Residential Solar Energy Program

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From: lownoise
Date: Fri, Dec 8 2006 10:17 pm
Email: "lownoise"
Groups: alt.energy.renewable

I haven't seen anything posted about the intriguing pilot phase
Citizenre REnU program, a very positive development in the evolving
residential (and commercial) solar energy marketplace.

In the interest of full disclosure, I have become involved with the
company. I was initially skeptical that this was a scam, and so did
plenty of research first. Happily, there is an abundance of evidence
substantiating its legitimacy. The following may be construed as a
commercial plug, but I feel that it is sufficiently newsworthy and
informative as to be of value here. Your indulgence and all comments
will be appreciated.

So here's the story:

The Citizenre Corporation, http://www.citizenre.com/tucson, is a new
solar energy company which aims to make residential photovoltaic (PV)
installations easy and affordable for the average homeowner while
minimizing up-front costs and risks. In doing so, it will create a
distributed rather than centralized solar-generated power system.

As we all know, adding solar electric generation capability to a home
presently requires a considerable initial investment. On top of this
comes the permit process, installation, maintenance, and so on. Even
here in one of the sunniest regions of the country, the use of solar
energy for electricity is still at a paltry level, and readers of the
group are no doubt well-aware of the economic factors which have kept
it so. For most homeowners, even those strongly motivated by Green
philosophies and concerns, the outlay required to go solar has just
been prohibitive.

Here's a thumbnail sketch of how Citizenre will eliminate those
obstacles:

With its REnU program, Citizenre will provide residential solar power
to grid-connected homes on a rental basis, and at the same time, afford
the homeowner an opportunity, not only to help reduce the demand for
foreign and non-renewable energy resources, resulting in a multitude of
benefits to our nation and to the Earth, but to lock in the price they
are paying for electricity from their present utility (at the time the
rental agreement is signed), for one, five, or twenty-five years.

The modular REnU PV system will be tailored to the home's structure,
orientation and historical electrical consumption needs, and will be
monitored remotely on a continuous basis for functionality and
efficiency. The customer remains on the grid. He/She pays Citizenre for
the power generated (that's the rent), and would pay their electric
utility (around here, Tucson Electric Power) for its electricity only
if consumption exceeded the PV's output on an accrual basis - in other
words, the meter ran forward more than it ran backward over the course
of the year. The maximum risk up-front to the homeowner would be a $500
(possibly less) security deposit upon the signing of a Forward Rental
Agreement, and that is only after it has been determined that there are
no physical or legal impediments to proceeding. Citizenre takes care of
obtaining all the permits and approvals for construction of the system.

So what's in it for Citizenre Corp, and how can it be competitive?

By integrating the full value-chain from manufacturing to installation
and maintenance, thereby standardizing and streamlining designs and
processes, and eliminating many middlemen and compounded profit
margins, it can lower total system costs significantly over the status
quo.

And, as owner of the physical assets, the company retains ownership of
any Renewable Energy Certificates that become available in conjunction
with the production of energy by the REnU, plus the rights to Federal
production tax credits; in certain states, it can even capture state
rebates. In the majority of cases, however, the states do not provide
rebates on such large commercial project, and so Citizenre carries a
portion of the assets value as manufacturer's equity. At the end of the
rental, Citizenre must sell the assets to recoup its deferred revenue.
It is expected that the asset will have a minimum of five years,
maximum of 15 years, life expectancy at which point the Company will be
able to sell the systems on the secondary market. The economics of
escalating electricity costs over the next 25 years makes this an
acceptable risk for manufacturer's equity. That's how it will work.

In summary, renting a PV system benefits the customer by making it
possible to acquire on-site renewable solar power without having to
take an investment risk, and by fixing the cost of a kWh. Moreover, the
REnU program features flexible relocation, transfer and termination
options, and a low termination penalty. The fee for early termination
will only be the security deposit, and the rental contract provides the
homeowner with hassle-free installation, quality maintenance and
guaranteed performance, while relieving him or her of the burdens of
ownership.

It is anticipated that site reviews, agreement signings and
installations will start around September 2007. Citizenre will waive
the security deposit for those registering before January 1, 2007. And
even if one decides to act after January 1st and misses that deadline,
no deposit or any other expenditure will be required by Citizenre
before production is in full swing, September 2007. So, with no
commitment or expense at hand, even the most dubious have nothing to
lose by registering.

There's a calculator on the website for estimating how much could be
saved by joining the REnU program.

I think you'll agree that this could dramatically change the domestic
renewable energy picture for the better. We'd sure like to see that
happen, so long overdue. Thanks for reading.

Douglas
tucson....@citizenre.net
http://www.citizenre.com/tucson

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