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Considering how much I hate the Solar City business model (pay us for the electricity generated, not the hardware installed), and how much I like Tesla's innovations... this seems like a win-win.
Solar system offers hardware sales as well either as a cash purchase or with in house financing. Still a lot of people like the PPA because they simply pay for the power at a rate lower than PG&E charges, they get to be "green", and they don't have to worry about maintenance, hardware failures, upfront costs, interest, etc.
It is a much easier for the uninformed consumer right now you are paying $120 per month in electricity. We can put a system on your roof which will cost $95 per month. Now me personally I want to own my system but look at how many people lease cars or rent a cable box (instead of buying a tivo) as examples of how many consumers just want to pay for a service.
