CitizenRe Corporation: Solar Power Company Offers a Deal Too Good to Be True
Is There Really an Easy Way Out of Global Warming?
They are selling people on the idea that they can help change the world by spending only $500 on solar power. Who wouldn't want that?
As a solar advocate for over 9 years I felt compelled to investigate CitizenRe's company further.
CitizenRe's web site informs the reader that, in fact, solar electric systems aren't affordable, therefore you must lease the equipment from them. This simply isn't true. Most states (or their respective utility companies) still rebate the end-users for the purchase of solar power systems that are installed as grid-tied systems.
According to an article by Stephen Lacey, Podcast Editor for Renewable Energy Access, David Gregg (CEO of CitizenRe) has offered to bring a solar panel manufacturing facility online by September 2007. They are further promising this factory will have the capability of manufacturing 100 megawatts in solar panels, thus helping to drive down the price of the equipment.
However, the beginning of construction has now been pushed up to January 2008. The contract does mention that if the factory is not built, or if they have to cancel the contract for any reason, you will not get back your deposit of $500.
CitizenRe also claims that the average cost of the solar electric system for the residential market is $40,000. In my 9 years of experience with the California residential photovoltaic (solar power) market, the cost of the average residential system runs more like $20,000 to $26,000. When questioned further about this discrepancy they admit that this average is based on all residential solar electric systems nationwide regardless of size.
And, they don't tell you up front that this is basically an MLM company.
After devoting 9 years to the real solar electric industry, and watching everyday business people struggling against the huge utilities and a lackluster government to bring clean energy to the American consumer, I know that buying a solar power generation system for your home appreciates the value of your home, reduces the energy bill the first month it is installed, and allows you rebates from the utility company and your federal taxes.
CitizenRe promises the consumer they can invest in the solar electric industry, when in fact they are really investing in CitizenRe.
Even their own former employees have set up websites and blogs to discuss the inadequacies of the internal organization. Former Regional Sales Director for CitizenRe, Richard George, wrote a report discussing his doubts about the company, which was leaked to a blog site called www.linkit.com.
George has been quoted as saying "the executives have been creating a culture of fear so that anyone who asks questions gets attacked for being negative or not having faith."
Solar power doesn't require faith, it is a well proven technology that is easy to use, once installed.
This is no way to run an ethical business. One must have reputable sources of income and capital to fund any start up business, and CitizenRe's resources have been continually questioned from the inception by investors, the media and their own "ecopreneurs".
With all the doubts about their business, you would think the owners/stockholders would be eager to prove their worth, so to speak. But no details about their financial structure have been forthcoming.
Some of the information I garnered from their website verified that:
1. the $500 deposit is non-refundable.
2. they maintain the solar systems free to the customers, however, all solar companies are required to do this.
3. there is absolutely no guarantee the US based solar module factory will ever be built.
4. CitizenRe is an MLM company.
The representative I interviewed did not specifically mention the fact that unless the customer chooses the 25 year contract, they are not guaranteed the locked-in rate. He failed to mention that the lessee ends up paying two utility bills; one to CitizenRe for the lease of the solar equipment, and you pay your regular utility bill for the "overage of electricity" at the current utility rates.
The "overage of electricity" is the amount of electricity you use subtracted from the amount of electricity your solar system generates.
According to CitizenRe's FAQ page, if you reduce the amount of your energy usage, the company will come out and remove solar panels from your roof to adjust to the decreased usage. Their contract also entitles them to readjust the contractual terms should this occur.
What this means to the end-user is that you will never be able to get a rebate from the utility company, which would otherwise occur if you were purchasing the equipment.
If one of the panels from your leased system is in need of repair, the CitizenRe website recommends that their customers contact their homeowner's insurance to see if the solar panels will be covered under the policy. CitizenRe then infers that if you buy the equipment, and the system is in need of repair, you will be stranded without help. Nothing could be further from the truth.
The truth of the matter is that most solar panel manufacturers warranty their solar panels for 25 years and are required to replace them if they are defective. Furthermore, the State of California requires electrical contractors to warranty the labor on their installation for five years.
CitizenRe does not manufacture solar panels or any other part of the photovoltaic system's equipment as of this writing 06/27/07. They cannot install the equipment (they are not licensed electrical contractors), and they do not perform the repairs on the equipment.
They are asking the general public to invest a non-refundable $500.00 of their hard-earned money into a false promise. It is a promise that CitizenRe will manufacture the equipment to bring down the price, a promise that the factory will be built starting in 2008. But already their promises have been broken and several deadlines left unmet.
CitizenRe clearly states that if their contracts are signed but the manufacturing plant is not ever finished, that you can cancel your contract and go your way. What they do not make clear is that this is an MLM company who is basically selling the "concept of being involved in the environment" to the general public.
The problem is, they're cheating the true photovoltaic generation system installation companies by misleading the public that they can change the world with $500.00! This loses customers for the companies who have the real product for sale.
Already, real solar companies fear that CitizenRe's underhanded tactics will end up discouraging many people who could otherwise be investing in their homes by purchasing a solar powered electric system.
Published by Diane Tegarden
D. Tegarden is a freelance writer living in Pasadena with her husband, 3 cats and a dog. Her third book Anti-Vigilante and the Rips in Time was published August 2009; available at Amazon.com, BarnesandNoble.... View profile
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13 Comments
Post a CommentThis article isn't convincing at all. I have no connection to CitizenRe, but it just seems she's missing the point.
The point of this company being: $500 is a lot less than $26,000. We don't need to be told that Americans don't value the long-term, so why not let someone profit on our inability to make the better decision of an equipment purchase?
CitizenRe makes a progressive solution affordable to everyone who has already spent their money on fast food, 20" rims, Ipods, and leased cars.
I find it extremely coincidental that all of the above comments disagreeing with the article seem to be coming from those who benefit from CitizenRE. Very convincing when the salesman is praising his/her own product! What a load of crap. I do agree that more research needs to be conducted, the company and its ideas/practices are new.
A robust solar industry can reduce our reliance on fossil fuels and help meet our needs for energy security and economic growth. It can create new jobs, build globally competitive markets, and protect public health and the environment.
There are many solutions to America's energy needs and I am proud to be part of the Citizenrē solution.
The security deposit is refundable, with interest, upon the completion of the contract. As with any rental agreement, the security deposit will be forfeit should the contract be broken.
The rental rates are based on per kilowatt hour production. The rate is guaranteed for the duration of the contract, or for up to 25 years. The rates will vary across the nation, depending upon the electric utility provider in the area. Currently Citizenrē is offering per kilowatt hour rates at the 2005 PUC publicized rates. Unfortunately Citizenrē cannot offer the REnU system in all areas as some utility rates are below the economic viability threshold of $.08 per kilowatt hour. Also, In areas where the utility companies do not offer net-metering, the REnU model cannot be offered.
Solar energy - clean, renewable and abundant - is a fundamental part of a sustainable energy future. A robust solar industry can reduce our reliance on fossil fuels and help meet our needs for energy se
Other companies have adopted recommendations from these international studies to increase production of solar modules to meet growing demand and to achieve lower pricing. Two companies have already adopted a rental program in the commercial solar sector. In addition, Mr. Jeff Wolfe of GroSolar recently introduced a rental program for residential solar customers in New York. (See www.RenewableEnergyAccess.com , news release of July 12, 2007)
Citizenrē is one of the companies that is ramping up to offer a new customer choice through a rental program, and is currently accepting applications. They are a company in formation, and only asking individual homeowners to indicate their interest at this point. Further, Citizenrē is not asking for the security deposit at this time, and will not until a system is ready to install and the design is approved by both the homeowner and the engineer. The security deposit is refundable, with interest, upon the completion of the contract
Thank you for your article. My name is Russ Meeker an Independent Ecopreneur. I am writing to share with you a new way to upgrade to green energy.
Some history on the Citizenrē business model: In January 1995, the European Commission wanted to know what it would take to transform solar energy into a competitive industry in Europe. The final report, MUSICFM, written by the European Solar Industry (including BP Solar) was released in July 1997. In August 1999, Greenpeace commissioned the accounting firm of KPMG to conduct a study into the feasibility of producing solar panels on a large scale, specifically as suggested by the 1997 study. This fully-audited report reinforces the findings of the MUSICFM study.
Based in part on the MUSICFM study, in 2006 a new economic business model for distributive generation was introduced. Citizenrē is just one of the solutions to bring solar energy to the mainstream. Other companies have adopted recommendations from these inte
Dear Ms. Tegarden,
I appreciate your interest in calling attention to Citizenre, and being the watchdog for everyone, but in this case you are barking up the wrong tree.
There isn't any denying that Citizenre uses a Network Marketing program for it's sales team, like Mary Kay, Pre Paid Legal, etc..That in itself shouldn't be an issue.
No money is solicited from customers until we have panels ready to be installed, and the customer signs off on the system design.
It's very easy with the internet for anyone to decide to write a piece like yours without doing all of the research.
I would suggest contacting our SVP of Communications, Erika Moran for the complete story. We are all very passionate and concerned for our environment, and we all need solutions that make an immediate impact, and don't require large capital investments.
Thanks for your opinion, please contact corporate directly I am certain you will then have the full story.
David Miller, Ind Ecopreneur
p.s. Mr. Geo
I am a senior that can't afford to buy solar and I am worried about ever increasing utility rates. Citizenre did not ask me for a deposit. I am so impressed with the Citizenre Vision I decided to "JoinTheSolution".
I am happily sharing this wonderful opportunity with folks across America. We will save a substantial amount of money and also help save the environment!.
Please don't bad mouth Citizenre, you are doing a huge dis-service to humanity. We Welcome You to join us and become a part of the solution.
"Together We Can Make A Difference"
I wanted to 'Go Solar" but could not afford the expensive investment, and being on pension I am concerned about ever increasing rates. Citizenre did not require a deposit in (2006)and I was so impressed with Citizenre I decided to "jointhesolution" and am happily sharing this wonderful opportunity with folks across America. Not only will we all save a substantial amount of money but we are helping to save the environment also !.
Please do not bad mouth Citizenre as you are doing a huge dis-service to humanity. We could use your help.
"Together We Can make A Difference"
Howdy,
Please contact Bonnie, Dr. Horowitz or myself. You must have gotten most of your info via rumor. I was one of the first customers and Ecopreneurss last September and have nothing but positive feelings about Citizenre's solution to help combat pollution/global warming and many other pollution caused problems.
Feel free to contact me through my site: www.jointhesolution.com/flagnomore there is a link for email as well as my phone number. 8:00am-10:00pm pacific time 7-days a week and not slowing down! Taking advantage of the delay in opening to train Ecopreneurs to handle the customers when the news release comes.
Peace,
Frank Knight