Selling the Sun: Establishing Value for Solar PV Homes August 2, 2017 i Contents Selling the Sun: Establishing Value for Solar PV Homes ................................................................................ i Introduction ................................................................................................................................................. vi Disclaimer................................................................................................................................................. vi Acknowledgements .................................................................................................................................. vi Welcome ................................................................................................................................................... - 8 - Solar for the Real Estate Professionals ................................................................................................. - 9 - Center of the Transaction ................................................................................................................. - 9 - A Note about Terminology .................................................................................................................... - 9 - Structure of the Class .......................................................................................................................... - 10 - What You Will Learn ....................................................................................................................... - 10 - Structure and Learning Objectives .................................................................................................. - 10 - Practitioner Spotlight .......................................................................................................................... - 12 - Module I. The Emerging Solar PV Market ............................................................................................... - 13 - Introduction ........................................................................................................................................ - 13 - The Growth of the Solar PV Market .................................................................................................... - 14 - Rapid Growth .................................................................................................................................. - 14 - What is Behind the Growth of Solar? ............................................................................................. - 15 - Activity ............................................................................................................................................ - 18 - An Expanding Conversation ................................................................................................................ - 19 - Research .......................................................................................................................................... - 19 - Zillow Sun Number™ ....................................................................................................................... - 20 - Google’s Project Sunroof ................................................................................................................ - 20 - Social Media .................................................................................................................................... - 20 - Practitioner Spotlight .......................................................................................................................... - 21 - Review of Module I ............................................................................................................................. - 22 - Module II. The Parts and Pieces of a Solar PV System ............................................................................ - 24 - Introduction ........................................................................................................................................ - 24 - The Visible Components of the PV System ......................................................................................... - 25 - Solar Panels ..................................................................................................................................... - 25 - Inverters .......................................................................................................................................... - 26 - Mounting Systems .......................................................................................................................... - 28 - ii Performance Monitoring System .................................................................................................... - 29 - Review: Main Components of the Solar PV System ........................................................................... - 29 - Bi-directional Meter (a.k.a. Net Meter) .......................................................................................... - 30 - Batteries .......................................................................................................................................... - 30 - The Solar PV System: How It Works .................................................................................................... - 31 - Understanding kWh and kW ........................................................................................................... - 33 - Resources for the Homeowner and the Real Estate Professional .................................................. - 33 - Activity ............................................................................................................................................ - 34 - Understanding kWh and kW ........................................................................................................... - 35 - Practitioner Spotlight .......................................................................................................................... - 36 - Review of Module II ............................................................................................................................ - 37 - Module III. Financing the Residential Solar System ................................................................................ - 39 - Introduction ........................................................................................................................................ - 39 - Solar Financing Options ...................................................................................................................... - 40 - Breaking down the differences: Direct Ownership and Third-Party Ownership ............................ - 40 - Direct Ownership ................................................................................................................................ - 42 - Direct Ownership: Cash Purchase ....................................................................................................... - 43 - General Information ....................................................................................................................... - 43 - Liability ............................................................................................................................................ - 43 - Benefits and Challenges .................................................................................................................. - 43 - Purchasing the PV System with Cash: Costs and Revenues ............................................................ - 44 - Direct Ownership: Solar Loans ............................................................................................................ - 46 - General Information ....................................................................................................................... - 46 - Financing ......................................................................................................................................... - 46 - Liability ............................................................................................................................................ - 46 - Benefits and Challenges .................................................................................................................. - 47 - Third-Party Ownership ........................................................................................................................ - 49 - Solar Leases and PPAs: What's the Difference? .............................................................................. - 49 - Third-Party Ownership: Solar Leases .................................................................................................. - 50 - General Information ....................................................................................................................... - 50 - Financing ......................................................................................................................................... - 50 - Liability ............................................................................................................................................ - 50 - iii Benefits and Challenges .................................................................................................................. - 51 - Third-Party Ownership: Power Purchase Agreement (PPA) ..............................................................