TO RECONSIDER SOLAR
NOW IS THE TIME
By Nathan Andreatta
In a day and age where everyone is seemingly ‘going green’, where millions of California residents reside in communities governed by an owner’s association, why are so few taking advantage of the
solar to offset their often considerable common area expenses? Simply put, the path to installing solar has been daunting to the point of being too intimidating for solar contractors, management companies, and board members.
they should. While it’s tough to put a finger on what percentage of owner’s as- sociations are underfunded, suffice it to say it’s a fairly high number, there are few solutions more impactful than solar to immediately save money and set the foundation for future financial health. Associations which are well funded should also certainly look into solar as avoiding unnecessarily high electricity costs is a great way to stay financially fit.
- nity, but it is definitely in an associa- tion’s best interest to at minimum ob- tain an initial analysis of their current electrical usage to deduce if there are savings to be considered. Communi- ties at the mercy of notoriously expen- the community, as long as common area electrical expenses exceed around
A sentiment from one of the top North- ern California HOA attorneys has stuck
with me when he iterated that it is both the board and association management company’s fiduciary responsibility to identify ways to save their associations’ that capacity.
One of the most common concerns with solar is the cost of a solar system and the fear of having to potentially raise HOA dues in order to cover the monthly loan payment for a solar system - especially for underfunded HOAs looking to right their financial ship. While traditional loans can be considered, by far and away the most common and popular solution for asso- ciations is to obtain solar via a Power Pur- chase Agreement (PPA). As associations enjoy the available tax credits and depre- ciation that purchasing a solar system pro- vides corporations and private investors. A third party who can take those benefits buys the system, installs it on the HOA’s property, maintains it, and sells power back to the community at a discount for At the end of this duration, ownership of the system is routinely handed over to the HOA for a very minimal cost.
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