Florida-based solar-as-a-subscription startup Terra Energy has officially launched its new TerraOne plan, a 36-month agreement for homeowners in the CenterPoint and deregulated service areas of greater Houston, Texas.
Under the plan, Terra Energy installs a rooftop solar installation and 40 kWh battery at the homeowner’s premises, and sells the electricity to the homeowner over the subscription term.
In its announcement of the program, Terra said the cost to the homeowner for the subscription can be as low as $0.06/kWh before delivery charges, based on usage, system design, and program eligibility.
The low prices are a result of Terra’s Texas business model, backed by the company’s first virtual power plant (VPP). Similar to VPP programs from other Texas solar and battery providers, Terra Energy will aggregate the batteries it installs at customer homes to provide energy, capacity, and ancillary services to grid operators, creating a source of revenue in addition to subscription fees.
In addition to income from its VPP operations, the company says its unique business model and vertical integration of sales, warehousing and operations allows it to keep overhead costs low.
At the end of the initial term, the homeowner can choose to continue the subscription or cancel. Terra Energy is counting that most of its customers will choose the former, and the company says it has data to back that up.
In April, Terra CEO and founder Jaime Martinez told pv magazine USA the company had retained 98% of its customers beyond the 3-year mark in Mexico, its original market.
At the time, subscriptions for Terra’s first customers in Florida were just beginning to reach 36 months, and Martinez said that 100% of those customers retained their subscription to the company’s service.
Since that time, the company has been testing its Texas offering in a pilot program, which has now become TerraOne.
“We’re proud to be launching our decentralized power plant solution in Texas to help make it simple for Houston homeowners to lower their electricity cost while keeping the lights always on,” said Martinez in a statement. “For two decades, going solar meant needing to write a big check or take out a 20-plus-year loan. We’re lowering the barriers to entry for homeowners with TerraOne’s short-term subscription.”
Also in April, Martinez said his company planned to offer its service in additional Texas regions and expected to expand to California sometime later in the year, but the company has not made any further announcements about those plans.
Homeowners interested in learning more about the company’s Texas offering can visit www.terraenergy.io/texas.
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