Kansas isn’t the easiest state to be a solar installer, but one stalwart firm has figured out a way to be successful.
Aron Cromwell, owner of Cromwell Solar, created a solar leasing program with a local bank, Mid America, that’s generating business for both of them.
Essentially the bank acts like a solar leasing company, say SolarCity, which finances and owns the systems. Cromwell installs the system, then the bank buys it and takes the tax credits and depreciation savings. The homeowner pays the bank the typical solar leasing monthly fee.
What’s unusual is that the bank is willing to take it on. One reason solar leasing firms got their start was because banks weren’t interested in financing solar systems.
The relationship began when family-owned Mid America Bank hired Cromwell to install a solar system on the roof of its main branch in 2010. A couple of years later, Cromwell approached the bank with a partnership proposal. The bank ended up developing its own leasing arrangement and even without strong policy support from utilities or the state – it’s profitable.
Solar at Mid America Bank:
The bank also does it because they "believe renewable technologies are important, and we want to promote them as much as possible," vice president Jeff Hill, told Midwest Energy News. Cromwell has since installed solar systems at other bank branches, and now they also promote the solar leasing business.
18 months later, 70 people have solar leases, and often they move to the bank "that shares their values" for their other financial needs.
Now, the partners are expanding across Kansas. In addition to expanding their business, they see spreading solar across the state as an important way to prevent politicians from gutting what solar incentives there are. Last year, the state came close to eliminating solar net metering and next year, the Renewable Portfolio Standard (20% renewable energy by 2020) could also be voted out – and utilities could seek solar surcharges.
"One of the reasons we decided to really push across the state was the experience we had last year lobbying," Cromwell told Midwest Energy News. Support for solar "was concentrated in eastern Kansas. All of our advocates are from one area. That’s not as powerful as having advocates across the state. One thing we’re trying to do is to build a network of advocates across the state."
Read the article at Midwest Energy News:
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