Saturday, June 2, 2012

A community guide to collective purchasing of residential PV


Anyone who has shopped at Costco's or Sam's Club knows the power of buying goods in bulk. It can be considerably less expensive to buy tons of rolls of paper towels, than just one at a time. So why not apply these economies of scale to the solar world? Well one major obstacle is that the average residential consumer doesn't really need a large system or many small systems. Nor are they interested in a substantial financial investment. No, the average residential consumer wants a system to power their house. But Solarize Portland, brought together a number of potential buyers and found a way to access a bulk purchase price for each member. Homeowners could install systems on their homes, while accessing cost reduction of bulk purchases. After Solarize implemented their bulk purchase program the price for their members systems decreased by 30-35 percent. Quite a discount!

In May, Solarize Portland, released a Guidebook, outlining the tenets of such a purpose so that other communities could follow suit. The Solarize Guidebook: A Community Guide to Collective Purchasing of Residential PV Systems outlines the major market barriers communities face,  including high upfront costs, complex solar purchasing options, and customer inertia. And it provides best practices for a successful purchase, such as competitive contractor selection led by the community; community-led outreach and education; and making the purchase option a limited time offer.  The Guidebook is available here on the National Renewable Energy Laboratory Website. 

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