SolarCity is going from one city to another, helping California residents make the investment in solar power. They’ve developed a program called the “Collective Power Program,” which leverages economies of scale to provide lower prices for solar panels. Here’s how it works: if SolarCity can install enough solar panels to generate 175 kw during an optimal five hour period in the middle day, they can charge customers $7.90 per kw a system (as opposed to $10.05). In Portola Valley, the response was overwhelming and they sold enough panels to generate 322 kw. Next stop = Mountain View (aka Google City).

SolarCity is planning a community meeting with Mountain View residents and businesses this Saturday (February 10), and the company’s president Lyndon Rive will discuss the details of the Collective Power Program. With group purchasing power, Mountain View customers will save 30% over typical solar installation and service costs.

Where does the cost advantage come from? (1) SolarCity can purchase supplies in bulk and get a lower price; and (2) by having customers in a concentrated geographic region, it can minimize costs of service and maintenance. SolarCity makes the investment easy for consumers, too. Services include permit processing, system design and installation, rebate administration, financing, energy efficiency consulting, and system monitoring. From what I understand, SolarCity takes a pro-active approach to the whole process by making sure the system is working optimally at all times.

I think this is going to be what it takes to get solar moving forward, on a larger scale. If a company can establish good will in a specific region, there will be huge opportunities to capitalize on economies of scale without getting over-extended into different geographic regions. Solar is such a complicated product, including the piece meal regime of rebates, the best companies will be those that can provide expertise and service. Local companies will have a vested interest in the success of solar power generation and can help people rely less on coal- and gas-power plants.

Sidenote: Regarding homes that are not energy efficient, solar power may not be the first investment to make. After all, what good is solar power if your home is leaking heat/ac through the walls and cracks? That said, after speaking with a green professional about the specifics of your home, solar could be the right, next step.