Why go solar?
With the utility at the high level of cost it is today, the most common phrase I hear home owners say is "this is a no brainer" when I show them the details on how the system works, their personal ROI period, and the products they will be receiving. The other part is that, the utilities rates in California aren't going down anytime soon, they are already approved by the PUC (public utility commission) to increase 5.8% this year, 5.84% next, 4.4% in 2019 and so on. Also, with plans to implement a "high user surcharge" and force every consumer onto a Time of Use rate plan, it seems they can almost do what they want with your bills. Solar, gives you the independence and control over where and how you spend your hard earned money.
what happens if I sell my solar house?
If you own your solar energy system, your solar house will sell at a premium: studies have shown that solar increases property values. But, you have a couple options:
The choice is yours!
- If owned outright, the warranties DO transfer to the new home owner for whatever time period is remaining.
- If there is a principle amount left on your solar loan, the new buyers can simply take over the remaining payments and remaining warranties.
- Or, like stated above, your home will sell for a better price and leave you some profit - so you can pay any remaining principle amount off with your profit and leave the new home owners with free power and warranties.
- Or, you can take the system with you. However, there is a charge for that and a few limitations - 1: You have to stay within the same utility and 2: You can't go down in system size, you can, however, go bigger.
- The new buyers take over the remaining years and warranties left in the solar lease/PPA contract and enjoy less expensive/renewable solar power in their new home.
- Or, Say you sell your solar house at year 10, the contract will have 10 years left at that point. The solar company will calculate how much is left to be paid on the total time left, give a discount, and give you the option to pay off the remaining balance to either 1: Keep the system for the remaining term already paid in full or, 2: Come and take the system off and let you go back to the utility.
- Or, again, you can take the system with you with the same limitations stated above. 1: You have to stay within the same utility and 2: You can't go down in system size, you can, however, go bigger.
The choice is yours!
How long do solar panels last?
Solar Panels have been out for 60 years, the very first solar "panel" still works today!
Check it out below.
Check it out below.
Most manufacturers provide a 25 year warranty for the equipment. I compare this to vehicles, some come with a 100,000 mile warranty, however, you will still be able to drive and use that vehicle long past it's warranty period, right? Solar panels are the same, even though they are warrantied for 25 years their life doesn't end there. Most manufactures expect anyone of their systems to still be generating considerable amounts of energy even 40-50 years after the install.
It is tough to say definitively how long they will last since every system has it's own characteristics/variables with sun exposure, shading, orientation to the sun etc. However, it is conclusive that if your investment pays itself off with the energy cost savings and lasts for decades, that it is a good investment.
It is tough to say definitively how long they will last since every system has it's own characteristics/variables with sun exposure, shading, orientation to the sun etc. However, it is conclusive that if your investment pays itself off with the energy cost savings and lasts for decades, that it is a good investment.
Do i have to clean my solar panels?
I have clients that have had their systems for years and never done a thing with them, yet still produce just the same amount of energy as they did day 1. When we mount a solar system to a roof it puts the panels at a slope, so the periodic rain is typically enough to give them a cleaning without you having to do anything.
For some of you though, you may live in climates that create lots of dust in the air, for this what I typically suggest is using your garden hose every once in a while to spray them off if you notice a layer of dust on them. This is typically for aesthetic purposes only, but hey, you spent the money on the system, why not take care of it every so often?
Some installers promise you a "maintenance plan" this just means that they will come out MAYBE once a year and hose them off with the same garden hose that you already own, and some even charge for that! Don't fall for that.
For some of you though, you may live in climates that create lots of dust in the air, for this what I typically suggest is using your garden hose every once in a while to spray them off if you notice a layer of dust on them. This is typically for aesthetic purposes only, but hey, you spent the money on the system, why not take care of it every so often?
Some installers promise you a "maintenance plan" this just means that they will come out MAYBE once a year and hose them off with the same garden hose that you already own, and some even charge for that! Don't fall for that.
how long does it take for the panels to pay for themselves?
With the 30% of total systems cost Federal Tax Credit still around, it helps the benefits of your solar investment be realized sooner. For example: A typical system for most homeowners is around $27,000 this gives you a $8,100 Federal tax credit, bringing your Net system cost down to just $18,900, this system size typically correlates with an average monthly bill of $280/month for electricity.
If you take $18,900 divide that by $280/month it gives you a ROI (return on investment) where the system pays for itself in 5.6 years!
There are lots of factors that go into the cost of a solar system, so some ROI periods are longer or shorter. Which is why I sit down with each client and show them how the economics works for them personally.
If you take $18,900 divide that by $280/month it gives you a ROI (return on investment) where the system pays for itself in 5.6 years!
There are lots of factors that go into the cost of a solar system, so some ROI periods are longer or shorter. Which is why I sit down with each client and show them how the economics works for them personally.
what is the federal tax credit and how do i know if i can use it?
Now, remember, I'm a solar guy and not a tax guy, but I can explain how it works. One of the financiers that I offer to my clients has a great video on how it works below.
Essentially, you have to pay taxes in order to use the tax credit. It is not a deductible or a write off, what it does is replace the amount of money you owed the federal government for what you made after all of your deductions and write offs have been taken into account. The tax terms for it is "It reduces your federal tax liability".
If you don't pay very much in taxes, for example, like most retired folks on a fixed income don't, then sometimes talking about a lease/PPA or prepaid PPA is a great option to still go solar and save money on your utility expenses but not have to worry about your taxable income.
If you don't pay very much in taxes, for example, like most retired folks on a fixed income don't, then sometimes talking about a lease/PPA or prepaid PPA is a great option to still go solar and save money on your utility expenses but not have to worry about your taxable income.
what happens at night when the solar system isn't making electricity?
Throughout the day your system produces clean energy. As it is doing so, your home is consuming some of the energy while it is being generated, however there is excess energy being generated over what your home is consuming throughout the day that gets fed back into the utility as credits. That excess energy or credits that your system generated for you while the sun was up, is the energy that you start pulling from the utility just as soon as the sun goes down. So, at night you are simply using the credits that your system generated throughout the day.
can i go "off the grid"?
The answer is yes, and no. The "yes" part of that is that the technology DOES exist to disconnect from "The Grid". The "no" part of this answer is, in California, it could get you evicted from your home (YIKES!). However, there ARE many technological ways that exist today to reduce your homes dependence on the grid with smart batteries and home automation, which I can help explain, but not a way for a complete disconnect.
should i lease or buy the solar panels?
Every home owner is different. The two factors that usually count the most is 1: How long you plan on staying in your home after going solar; 2: If you can use the federal tax credit to your benefit.
Typically, I see people lease their solar systems if they don't plan on staying in their home for more than 5 more years after installing the solar. They are simply giving themselves, and the future new home owners. less expensive, predictable, electricity costs. The home owners that purchase their solar systems are typically the ones that plan on staying in their home longer than 5 years after installing solar.
With regards to the federal tax credit, even if you plan on staying in your home longer than 5 more years but the federal tax credit wouldn't necessarily apply in your situation, then talking about a lease/PPA or Pre paid PPA might be a worthy conversation. If you plan on staying in your home longer than 5 years and can use the tax credit, then ownership is likely the best way for you to go.
Because of the ever increasing utility rates either way you go, is likely to cost you less than the utility is costing you now, and give you predictability for the future.
Typically, I see people lease their solar systems if they don't plan on staying in their home for more than 5 more years after installing the solar. They are simply giving themselves, and the future new home owners. less expensive, predictable, electricity costs. The home owners that purchase their solar systems are typically the ones that plan on staying in their home longer than 5 years after installing solar.
With regards to the federal tax credit, even if you plan on staying in your home longer than 5 more years but the federal tax credit wouldn't necessarily apply in your situation, then talking about a lease/PPA or Pre paid PPA might be a worthy conversation. If you plan on staying in your home longer than 5 years and can use the tax credit, then ownership is likely the best way for you to go.
Because of the ever increasing utility rates either way you go, is likely to cost you less than the utility is costing you now, and give you predictability for the future.
what happens when the grid goes down?
As a safety measure, all grid tied solar systems will turn off when they are producing energy if the grid goes down. The reason being, the utility doesn't want energy being back-fed into the grid when they could possibly have repairmen working on it. However, there are battery backup solutions that can keep certain appliances/machines running in the event the grid goes down - for further information and costs please reach out to me. You don't have to worry though, the second the grid comes back online your solar system will automatically turn on also.