FREE unlimited energy convert into profits = unlimited profits : SIMPLY LOGIC alot of us haven't thought about. 20 years contract each home. Billions of them out there. Within 5 years SCTY will be our main utility company.
The average home owner stays in a house 5-7 years and then sells. Solar City has told you that even when they suggest buying out the lease, getting the new owner to assume the lease or putting the cost into your sale price - if not chosen - Solar City will apply a lien to you rhome and get their money back immediately. You are not getting FREE electricity - you make a payment every month - pay up front for a fixed monthly payment or pay 3% more each year which according to the rule of 72 72/3 =- 24.6 - meaning your lease payment will have increased to 90% more than you start with which is EXACTLY like an adjustable rate mortgage which is EXACTLY what led to millions of foreclosures. You think this is magic - Solar City borrows money from Goldman (you do not know the terms because they are private) and they loan you money in the guise of a solar system and then you think they are not making a profit?
If you borrow money and install your own system you HAVE TO SAVE Solar City's profits - it is simple economics.
Nope - competition in a high tech market will come up with alternatives. For example - if the Solar City deal is so great do you think that it is so unique that no one can compete with it? Say a public utility does the same thing - and just spreads out the payment to the owner of the home - or offers a discount on your bill - or offers a higher per Kw rate for excess electricity generation - exactly the same terms offered by Solar City except it DOES NOT hit your credit report and you have one bill and you deal with one company.
Solar City is not magical creating wealth out of nothing. As a home owner there is NO way you can borrow money and make money - the market will suck up this excess consumer wealth one way or another.
When the stock hits 20 it will be a better investment than the lease.
It already has been if you are a bull.
So for the stock to succeed the lease must succeed and with interest rates increasing Solar City will raise the cost of their lease and offer it so subprime borrowers and defaults will increase and there you. Go - so far no one has provided any numbers that go any further than "of course you make money if your electricity bill goes down" - of course, but the question is what RETURN ON YOUR INVESTMENT are you achieving and is that return better than the opportunity cost you have foregone? It isn't.
There are so many options available.