Even Less Power to You. Too Good to be True?

I just had another energy survey.  This one was from a private company called Sun Star Energy.  You can look 'em up at sunstarenergyllc.com.  Their approach was different from FPL's.  They don't just tell you how you can reduce your electric usage by turning off lights when you're not in the room, keeping your house less cold during the summer, etc.  They sell stuff that's designed to lower your usage, and your bill.  Here's what they proposed to sell me, and why it was presented as an offer I had no rational reason to refuse.  Pretty much.

The current program is for a solar water heater, special "NASA" insulation applied under the roof, not over the ceiling, and an electricity regulator.  The latter is designed to prevent the surge of power usage that reportedly happens when you switch something on.  Not only can these items "not be purchased in stores," and are based on the many patents owned by the company's owner, but "for a limited time only" there is "no purchase required" at all.  I'm quoting here not because this is what the salesman said to me, but because this was the idea, as silly and trite as it sounds.  So, "if purchased separately," these three improvements would cost $11,289.  But because of federal government incentives, and a $1000 incentive from FPL, there is no cost at all to homeowners.  What you have to do is promise to turn over to Sun Star Energy all the incentives that will start appearing in your mail.  In case this sounds like the most blatant scam in the world, the work will already be done by the time you start receiving the incentives, and you couldn't receive them if they were not, in reality, available.  And Sun Star Energy is licensed, etc.  By the way, of course I asked, and a program to install solar panels to produce electricity for the house begins in June.  Stay tuned, I guess.

There are a few peculiarities.  One is that the program is available to everyone, regardless of need.  So if you thought it was worthwhile, and you could easily afford to pay for all or part of the improvements yourself, you would still get all the incentives.  In that sense, it's a waste of government money.  Second, the total of the incentives is $12,000, which is $711 more than the improvements cost.  But I'm told they'd be happy with the $11,289.  If you keep the $711, no one will come after you.  Also, because of the generous incentives, the costs of the improvements are no doubt inflated.  Finally, the profit margin is presumably so luxurious that the company will give a fee of $200 to anyone who refers another customer.  It appears the program is only in Florida at the moment.

There's one other peculiarity.  And it's a cause for concern.  This program is presented as costing homeowners nothing.  The incentives will cover all the costs.  They'll cover more than all the costs.  All you have to do is remit them to Sun Star Energy.  Sun Star is quite sure about this.  Is the homeowner quite sure, as sure as Sun Star is?  The FPL incentive is in the bag.  I checked, it's for real, and the money is already committed to me if I decide to go ahead.  But what about these storied government incentives?  Suppose they're not what Sun Star says they are.  Or suppose the pool dries up, or the government ends the program.  No possible way, says Sun Star.  OK, well how about this, then, I propose: you write into the contract that you agree to accept whatever the incentives are as full satisfaction of my obligation to you.  If all the incentives come through, you're fully paid.  More than fully paid.  If for some reason they don't, you don't come after me.  Nope, we can't do that, they say.

So there it is.  They do not put their money where their mouths are.  They were right about FPL.  Are they right about the rest of it?  Maybe.  But they're only willing to bet your money, not their own.

The good news, if you, or I, want to do this is as follows: if you believe in these energy-saving measures and appliances, and you would be willing to pay for them if you had to, you can contract with Sun Star.  The worst that could possibly happen is that you would get $11,289 worth of green upgrade for $10,289.  If you don't get the electricity regulator, which even Sun Star admits only saves you 9% of your electric bill, you can save $1500.  So now, your maximum exposure is down to $8789, for a solar hot water heater and extra good insulation.  If any of the other incentives come through, you would pay less.  If they all do, you pay nothing.  So they're risking your money, but you do get something good for it, if worse comes to worst.

Is this interesting?  If it is, call Paul Buzzella at 888-377-3111.  The home office is in Boca Raton.  Don't mention my name, since I don't want the $200.  Tell him to deduct it from your costs.  If you have any, of course.  Which he will reassure you you don't.