Solid Solar Development builds Community Solar Power systems based upon our modular 70 kw system design. That modular design is also the basis of the ‘privately owned’ business model. Since a 70 kw system will power 10 to 15 houses, we have set the number of possible owners the basic module to 10. For example a 140 kw System is consisted of 2 basic modules and will have a maximum of 20 owners.
Where we might build 980 kw of power systems in one area, we try to keep the size of each solar generator company to 140 kw or 210 kw to allow the owners to have more say in how they want to run their company. For example the proposed 980kw Santa Rita Ranch project will have four 140kw companies and two 210kw companies. This also allows us to get new systems into production faster.
How it works is:
- Solid Solar Development gets a site project series approved
- The equipment gets ordered and site preparation begins.
- The companies for the project series are formed and applications for ownership are accepted.
- The equipment arrives and the installations begin.
- Installation completes and the system goes through commissioning tests.
- System goes into production and the money starts coming it.
- The 140kw can normally be in production within 2 months after the equipment arrives.
The Ownership numbers
Where costs vary by time and location, the business model takes the total cost for an installation and gets it financed on a 10-year contract with 20% down payment. The 20% down is raised thought the sales of the 20 ownership shares in the company. The following table shows the numbers for the proposed Santa Rita Ranch project as of May 2022.
NOTES:
- Owner Share = Down payment divided by 20 owners
- Average Monthly Revenue = NREL PVWatts Calculation times Pima County Electrical Rate .1015 per KwH
- Monthly Return A: Avg Mon Revenue less loan Payment divided by 20 owners. First 10 years or until loan is repaid.
- Monthly Return B: Avg Mon Revenue divided by 20 owners. 15 years after loan is paid.
- Total Return after 25 years = Monthly Return A times 120 months plus Monthly Return B times 168 months (Calculated at 14 years for loss of panel efficiency with age.)
- Monthly admin, maintenance, and site rent are deducted from the monthly revenue before the return calculations are done.