Solar energy for low-income families 

The Philadelphia Energy Agency (PEA), runs the Solarize Philly group purchasing campaign.  The campaign is to recruit a large sum of customers to pursue clean energy simultaneously. This  allows the PEA to purchase solar energy in bulk, resulting in better deals from renewable energy contractors.This innovative plan uses the solarize campaign to give a new funding stream for low-income households. 
 

Wheeling and dealing 

The group  first negotiates deals with clean energy suppliers and installers. The results were worthwhile, receiving three standardized equipment options, inverters, and optimizers. One distributor was willing to reduce prices in exchange for selling hundreds of kits. Once  packages and prices were finalized, PEA conducted a promotional campaign to get the word out. PEA reached out to to those who expressed interest to find the most qualified leads to ensure process runs efficiently. They gave 1000 leads to pre-qualified local solar installers to inspect the roofs, make offers, and close deals. The 166 households that went all the way through to installation was a great start. 
 

Phase 2 of Solarize Philly 

To include low-income households in the campaign, PEA imposed a nominal fee on all customers who participate in the campaign. The fees were applied  to enable clean energy on low-income housing. The campaign tapped into a portion of   money saved by buying bulk and creating a low-income solar energy fund. Instead of purchasing solar panels to give   to low-income customers, PEA   lined up investors to finance solar leases. They will then use the $200,000 low-income fund to guarantee any non-payment of the leases that decreases risk for investors. With lower risk, investors will be more comfortable with lower profits driving down costs.Thanks to this leverage, about 45 customers get 75-100 percent of their power from solar saving about $240 per year.  After the 15-year lease expires, PEA donates the system to the homeowners. PEA works alongside with the  Energy Coordinating Agency and community organizations to connect with eligible households. The savings decreases stress on state programs that provide weatherization and energy assistance for low-income households. If the rate of defaults is low, PEA will keep the money in the guarantee fund to finance more solar homes. The goal of phase 2 of Solarize Philly is to recruit  300 market-rate participants that could possibly product another $400,000 for the guarantee fund, covering another 100 low-income households going solar.

If the rate of defaults is low, PEA will keep the money in the guarantee fund, and can use it to finance more homes.  Phase 2 of Solarize Philly is underway with recruiting another 300 market-rate participants by the end of the year. That could generate another $400,000 for the guarantee fund and cover another 100 low-income households going solar. “As a public agency, we are really sensitive about spending public funds effectively and efficiently,” says Rigell.  “With this kind of leverage we think we can deliver the most benefit for the least public investment.”

If you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much you can save over the next 20 years by going solar, and we can help find local solar installers who can help. For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.