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‘Tesla Solar’ Wants to Be the Apple Store for Electricity

Tesla Motors Inc.’s bid to buy the biggest U.S. rooftop solar installer has little to do with selling cars. Rather, it’s about solving two of the biggest problems standing in the way of the next solar boom. And perhaps a good deal more.

When Chief Executive Officer Elon Musk came out last week with his $2.86 billion plan to acquire SolarCity Inc., it was almost universally derided as a risky financial move that threatens to derail the electric car maker at its most critical moment.

That’s undoubtedly true. But in the dozens of analyst notes and news stories that picked apart the deal, there’s been little attention paid to what we’ll call “Tesla Solar” and how it could transform the power sector. It’s actually a really big idea.

Solar Problem No. 1: It’s too complicated

Consider the average homeowner who might be vaguely interested in adding rooftop solar. Where does the process start?

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Listen Up: Solar Power in the Sunshine State

When I first got into solar, Florida seemed to be a natural market. After all, it’s the Sunshine State. In spite of the sun, there is one big problem that was holding back the market: the state of Florida prohibits residents from purchasing electricity from a source other than a utility. Unlike all other sunny states in the U.S., third party solar companies such as SolarCity, SunRun and Vivint are prohibited from providing solar leases and PPAs to homeowners. This utility-biased state policy has made it difficult for homeowners to finance their rooftop solar systems.

Fortunately, affordable solar loans are now available in Florida. These low interest and easy qualification loans help homeowners get to positive cash flow (electricity savings > financing costs). As a result, the rooftop solar industry in Florida is finally growing, in spite of the utilities’ anti-competitive policies.

My guest this week is Justin Hoysradt, CEO of Vinyasun, one of the leading residential solar installers in Florida. Please join me on this week’s Energy Show on Renewable Energy World as Justin talks about the opportunities for rooftop solar in Florida, as well as some of their unique requirements — such as mounting systems and panels that can resist hurricane-force winds.

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