Facts About Solar co-ops

Sometimes called “solarship clubs”, solar co-ops are typically temporary groups of concerned homeowners that come together with the shared goal of helping a new solar technology startup succeed. Typically, these residential solar co-ops work like a business partnership. The homeowners in the group pool their resources together to pay for the cost of installing a new solar technology startup’s solar panels into the company’s already existing solar panels. As a business entity, this turns the group’s money into a large profit for both parties. official source
While these new technologies are still in their developmental stages, and may never become truly self-sustaining, the potential exists for many people to make a generous investment and reap the rewards. By investing in renewable energy, homeowners can be ensured that their home will always have electricity, no matter what the weather throws at them. They can also take advantage of the ever-changing markets for green mutual funds and reap the tax benefits that go along with having green investments. Additionally, by putting their money in a cooperative, they can enjoy many of the same benefits as larger investors without having to share any of the risk. For instance, some states allow homeowners to pool their funds together and invest in a wide range of renewable energy projects that are collectively called “renewable energy zones”. The zone includes different projects depending on where your home is located.
In some areas, there are specific renewable energy zones where homeowners can participate. In turn, they can band together with other homeowners in various regions or states to form solarco-ops, and pool their resources to purchase solar power systems from an experienced solar installer. These solar installer “rods” collect money from each sale they make and use it to buy back the solar cells from customers. The result is that the panels are made more efficient, and the electricity generated by the array is cleaner.
The profit from these sales is then sent back to the homeowner, who typically pays a monthly fee. However, the homeowner does not have to pay taxes on the income because it is considered income through the IRS. Likewise, many states have laws allowing solar panel owners to have passive investment accounts, which allow them to build solar panels without ever having to be paid back. There are now even neighborhoods where entire communities have banded together to form solar co-ops. This is a good way for large numbers of people to get involved in green projects, since many people see the money they save on electric bills every month, after making the initial investment.
Another advantage to solar co-ops is that it allows the homeowner the opportunity to work on their own, and not have to rely on a particular contractor. For example, if a homeowner wants to install solar panels, they might need to find a contractor. However, with a group, they can often get the same contractor, since the price per installed panel is usually cheaper per panel when the company is doing all the work. Solar installation companies have to pay a large amount of money to install each panel, so the overall cost can be quite high. By building each panel independently, homeowners can save thousands of dollars. They also avoid having to pay thousands of dollars in contractors, and find that they pay about half the price per installed panel.