By David A. Hill, Executive Editor

Earlier this fall SunRun introduced solar leasing to the Colorado residential home market that it hopes will mirror the success of similar programs it launched in California, Arizona and Massachusetts.

The San Francisco-based startup is partnering with local solar integrators, Namaste Solar Electric, REC Solar and Real Goods Solar to offer a leasing program along the Front Range and in Summit County, for now.

Even with available tax incentives, installing a typical solar-energy system supplying power to a home can be as much as $17,000. SunRun says its lease program reduces the upfront cost to as little as $1,000, with the homeowner paying a small monthly leasing fee between $60 and $80 - typically lower than a homeowner’s electricity bill.

“We remove the financial and time barriers to having a system up and running for the homeowner,” SunRun’s President, Lynn Jurich, tells Colorado Energy News.

Turnkey and Then Some

“Our program is more than a turnkey approach. Working with our integrators, we provide absolutely everything the customer needs - from the initial system recommendation and design, to installation, monitoring, insurance, performance guarantee and repairs.”

Jurich says that leasing enables homeowners to spread out the system cost over 20 years and to get the benefits of going solar now while rebate incentives are still relatively high and the price of solar panels lower than they’ve ever been.

“The program works like a car lease. The solar equipment goes with the house if it is sold or there can be a buyout. If you are using more electricity, you have higher panel expense; but the average cost per kilowatt hour of 11 cents stays pretty consistent, whether you’re leasing a large or small solar system,” explains Jurich.

The Industry Could Get a Lift

Not surprisingly, SunRun’s Colorado partners, are unabashedly enthuasiastic about the leasing approach and say it’s precisely what’s needed to move solar into the energy mainstream for homeowners.

“For those people who don’t want to worry about any potential headaches associated with owning a solar system or making sure that it’s working properly, this is absolutely fantastic,” says Namaste Solar’s CEO, Blake Jones. “That’s why we are so excited to have SunRun come to Colorado, because there have been lots of people who’ve wanted to go solar, but they haven’t been able to get over those barriers, particularly the upfront cost. Now that is achievable.”

What the solar integrator (REC Solar, Namaste Solar Electric, Real Goods Solar) gets out of the deal are the tax credits from the federal, state and local governments as well as from the power companies.

More Than Meets the Eye

“So far, the Colorado market has been very good to us,” says Jurich. “We had immediate sales in the first few weeks, and that’s something that usually takes two to three months at the outset.”

She thinks it might be because Colorado is a state with savvy consumers who’ve been interested in solar for a long time and are quick to grasp the lifestyle implications of solar leasing, once they start doing the math.

“This is more than just financing. The homework needed for solar is big - it  usually takes two to three years before homeowners considering solar eventually purchase a system,” Jurich points out. “Our leasing  option removes all the time and prep work normally associated with a homeowner purchasing his or her own system.”

Currently, SunRun is offering its leasing program to Xcel Energy territory customers only but hopes to eventually expand to other areas of the state.

A Big Assist from the State

SunRun’s expansion into the Colorado market is a direct outgrowth of the passage of Senate Bill 51, signed by Gov. Ritter on Earth Day 2009. The legislation allows solar companies to build rooftop systems that homeowners can lease instead of own, dramatically reducing upfront costs for consumers and, hopefully, creating a new marketplace and job expansion for solar installers.

In an October statement coinciding with the company’s grand opening here, Ritter said he was “pleased to welcome SunRun to Colorado. With great support from the Legislature, we’ve passed some of the most forward-thinking legislation in the country to help us attract companies like SunRun to Colorado. And not only are we creating sustainable jobs, we are lowering energy costs, increasing energy security and leading America toward a new energy future.”

Having recently secured $105 million in financing from U.S Bank, SunRun seems well heeled to continue growing its market share in Colorado and other states. The company says the capital infusion will enable it to fund 2,500 new systems worth $100 million.

No sense going where the sun doesn’t shine.