A Block Off the old Grid
The San Francisco startup Virgance has acquired a solar-power cooperative effort called 1 Block Off the Grid (or 1BOG) that will give homeowners in 20 cities the financial leverage to go green.
1BOG is about bringing communities together towards a common good. Under the plan, consumers who want to install solar panels band together into coordinated buying groups to cut a deal for their own home’s installation. The resulting savings can be excellent. According to co-founder Sylvia Venturane one of the participants in 1BOG’s inaugural program in San Francisco cut 43 percent off the list price. However the average benefit will probably be closer to 20 percent off, or $1.50 per watt that’s installed. Apply that to a $25,000 solar system, and it equates to $5,000, and rebates will reduce that still further.
Coordinated solar buys aren’t new, but it’s Virgance’s method of marketing and profiting from 1BOG that really stands out. The three founders of 1BOG will manage the 20 cities that the company is moving into themselves, combining outreach through blogs and newspapers with word-of-mouth through people joining the program, who are also operating out of self interest, knowing that larger groups equal larger savings.
The 1BOG founder will use their knowledge of solar systems to negotiate the best price for every installation. 1BOG’s takes 25 cents per watt, out of the total average savings of $1.75. So on that $25,000 solar system alone, Virgance could make almost $1,000 dollars. If enough people take advantage of the program then there could be some serious profit in this altruistic venture.
This is a great idea.
I’ve been wanting to get a solar energy system, but I have always been worried about the cost and also my own lack expertise leaves me open to being ripped off.
I hope they are coming to my city soon.
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