I am now running on solar.

[Dave Gray]

Solar power interests me, but for the few people I have seen get it, it doesn't make sense because of the long period to recoup your initial outlay.  If it can be financed with zero down (or most of your downpayment recouped via tax credits) and you are "net" ahead on monthly bills, as in your example, then it would make sense.

In your cases you've look at, is it varying based on their location or their circumstances or what?

For me, it looked to be an estimated 11 1/2 year payback and then it's gravy after that, plus value to your house, helping the environment, etc.  It turns out that it's about the same as investing all of the money and getting a 6% return.

[masterfins]

In your cases you've look at, is it varying based on their location or their circumstances or what?

For me, it looked to be an estimated 11 1/2 year payback and then it's gravy after that, plus value to your house, helping the environment, etc.  It turns out that it's about the same as investing all of the money and getting a 6% return.

It's been a couple years, actually probably 5 or more. but a combination of issues.  I live in upstate NY so we don't use as much electricity as those in the south because we don't have to run our AC as much, so that's part of it.  Another is that in the winter the sun is lower in the sky for us so less daylight to capture the sun.  Additionally, I don't recall the great financing that Fau has with a low interest rate.  Also, if I recall correctly the tax credit wasn't a refundable credit, so unless you have a tax liability as much as the credit you are entitled to, then you don't get the full credit.  I live in a relatively low income area where wages aren't great, so some wouldn't get the full benefit of the tax credit.  I remember doing some calculations back then and it was like a 15-20 year period just to break even.  So it's really a combination of issues.

For you I can see where it's a beneficial deal. One thing I was thinking about was using more electric heat in the winter and cutting down on using my natural gas fired furnace.  Natural gas is relatively cheap to heat with, but more rural areas near me that heat with fuel oil that's delivered by truck is verrry expense, I could see them greatly benefitting if they could switch to more electric heat if it was solar.

[Fau Teixeira]

the loan transfers, the panels belong to the house so i guess it does raise my property value to have this already done

[CF DolFan]

the loan transfers, the panels belong to the house so i guess it does raise my property value to have this already done

I'm assuming you have to pay it off if you sell before the terms are up?

[Fau Teixeira]

I'm assuming you have to pay it off if you sell before the terms are up?

no the loan transfers with the solar panels to the buyer, they take over the payments, the transfer agreement and buyer qualification are all parts of the closing

[Dave Gray]

no the loan transfers with the solar panels to the buyer, they take over the payments, the transfer agreement and buyer qualification are all parts of the closing

There is another option down here where you don't own the panels at all, but the company puts them on for free, but then you are required to buy your electrical from that company, which is less than the regular power company.  And if you move, the requirement to still use that company stays with the house.

I think that's like a 20 year lease and then after that, there's a buyout option.

[masterfins]

There is another option down here where you don't own the panels at all, but the company puts them on for free, but then you are required to buy your electrical from that company, which is less than the regular power company.  And if you move, the requirement to still use that company stays with the house.

I think that's like a 20 year lease and then after that, there's a buyout option.

I've heard of that here where I live also.  The solar company uses your roof for their panels and you get a break on the price of electricity - not a huge benefit but it's something.

[Dave Gray]

I've heard of that here where I live also.  The solar company uses your roof for their panels and you get a break on the price of electricity - not a huge benefit but it's something.

I think the benefit is pretty significant considering there is no money down or risk....like 20% cheaper or something.  But you don't get the benefit of tax credits or the value of the panels.

The downside, too, is that you're locking into that choice. 

[masterfins]

I think the benefit is pretty significant considering there is no money down or risk....like 20% cheaper or something.  But you don't get the benefit of tax credits or the value of the panels.

The downside, too, is that you're locking into that choice. 

Yeah the potential risks, maybe a small chance, is if the company goes out of business and you are stuck with these things on your roof and maybe they stop working because nobody maintains them.  I also look at whether you need to replace your roof because it's worn out so you may incur added expense with taking them down and putting them back up.  I think I mentioned earlier I would want to have a new, or newer, roof shingles before putting up the panels.  But overall, I agree with you Dave there's not much risk considering the potential benefits.

[Spider-Dan]

I think the benefit is pretty significant considering there is no money down or risk....like 20% cheaper or something.

Is it locked in to a fixed rate?

I don't have my rates from 2017 when I installed my panels, only from 2013 when I got my first EV.  But comparing my 2013 electricity rates to 2024, the cost per kWH is between double and triple what it was 11 years ago.  "20% off" would be a pretty lame deal.

[Dave Gray]

Is it locked in to a fixed rate?

I don't have my rates from 2017 when I installed my panels, only from 2013 when I got my first EV.  But comparing my 2013 electricity rates to 2024, the cost per kWH is between double and triple what it was 11 years ago.  "20% off" would be a pretty lame deal.

No, I don't think so.

I think they just sell you electricity at whatever their cost is, and that cost is less than the traditional electric company.  But I don't know the specifics about how it's guaranteed to be cheaper.  It was never an option I considered for my situation, so I didn't do more than just hear the inital general idea.

[Dave Gray]

40k total, 20 year financing %2 interest rate, 0 down
i've collected no rebates or tax credits yet because my system went live in 2023, so it'll be part of this year's taxes.
i get 30% of the total cost in tax rebate i get to claim this year (which i will choose to go directly to paying off the loan)

Seeing this got me thinking:

2% interest is crazy low.  Even high-yield savings accounts are 5% with zero risk.  CDs are higher than that.  It seems to me that you'd be throwing money away (and a decent amount of it) to pay that loan off ahead of time, unless there was some other incentive to paying it off early.

[Fau Teixeira]

yeah, i didn't pay anything off early .. i'll keep that 2% going