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CitizenRe Corporation: Solar Power Company Offers a Deal Too Good to Be True

Is There Really an Easy Way Out of Global Warming?

By Diane Tegarden, published Jul 06, 2007

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When I first heard about the company CitizenRe, their promises sounded too good to be true. The company is offering consumers (made recently aware of global pollution by Al Gore's movie "An Inconvenient Truth ") an easy way out to resolve the problem 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.

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Takeaways

A real solar power generation system for your home appreciates the value of your home.
Solar powered electricity reduces the energy bill the first month it is installed.
Grid tied solar systems allow you rebates from the utility company and your federal taxes.

Did You Know?

The State of California requires electrical contractors to warranty the labor on their installations for five years.

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Comments

Comments 1 - 13 of 13

Rob C

This 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.

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Posted on 10/21/2007 at 9:10:00 AM

D. R. Lizr

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.

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Posted on 08/20/2007 at 3:08:00 AM

Russ Meeker

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.

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Posted on 07/20/2007 at 11:07:00 AM

Russ Meeker

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

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Posted on 07/20/2007 at 10:07:00 AM

Russ Meeker

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

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Posted on 07/20/2007 at 10:07:00 AM

Russ Meeker

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

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Posted on 07/20/2007 at 10:07:00 AM

David M.

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

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Posted on 07/19/2007 at 3:07:00 AM

Michael L. Thomas Sr.

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"

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Posted on 07/18/2007 at 8:07:00 PM

Michael L. Thomas Sr.

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"

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Posted on 07/18/2007 at 8:07:00 PM

Frank Knight

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

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Posted on 07/18/2007 at 6:07:00 PM

Bonnie Yelverton

My husband and I were looking into solar for our house last year, and went away very disappointed. We had no desire to tie up so much money (even with great California rebates) is the panels, so we invested in a much need efficient heating and cooling system again. Then in January I heard about Citizenre. I, too, thought it was too good to be true, of course, but now I am also an Ecopreneur helping others get on the waiting list with me. The need must be there, because more than 18,000 people have signed up already! We are aware that about 50% do not have a roof that is good enough, but that still leaves close to 10,000 potential solar generators. I get people who have enough money available to buy outright, and I tell them where they can go to get them immediately. We're just interested in getting as many panels on roofs (not necessarily Citizenre's) ASAP, and we are all waiting breathlessly to find out when this will be happening. Hey, there are lots of eligible roofs out there.

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Posted on 07/18/2007 at 2:07:00 PM

Dr. Irwin Horowitz

All that we are asked to do is to educate ourselves on the industry and the company and demonstrate that knowledge via a training and testing program. She also seems to be of the opinion that anyone interested in installing a solar PV system on their homes has a spare $20000 to $30000 laying around. If this were so, then why has solar penetrated such a tiny fraction of the US market? People are signing up with Citizenre precisely because it provides an affordable means towards installing such a system. Personally, I don't know whether she is more terrified that the company will fail or that it will succeed. Either way, this fear piece is a load of rubbish and the reader should perform his or her own research on this company. Disclaimer: I am an independent ecopreneur with Citizenre.

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Posted on 07/18/2007 at 11:07:00 AM

Dr. Irwin Horowitz

What a load of crap! Perhaps Ms. Tegarden should learn how to conduct proper research before posting an op/ed piece with so many misstatements. She has completely misrepresented this company's policies, in particular in regards to the security deposit. First, it is not collected until after a site visit by the design engineer where the homeowner signs off on the proposed system design. Secondly, it is refundable (with interest!) unless the homeowner breaks the terms of the contract. If the contract is canceled by Citizenre, the deposit is FULLY refunded. By insinuating something sinister with regards to the company because the sales force utilizes an MLM structure is beneath contempt. The company does not ask for one penny from any member of the sales force. We are not required to purchase "sales kits" or any of the other questionable activities typically associated with such marketing organizations. All that we are asked to do is to educate ourselves on the industry and t

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