Doc Posted November 12, 2013 Posted November 12, 2013 I looked into solar panels for my house the other day. They'd be on the back of my roof and out of sight for my neighbors (my backyard faces a forest) and provide me with ~1/3 of my electricity with no money down and no other charges. Sounds like a no-brainer. The thing is, the lease is for 20 years and I have to believe that solar tech will improve immensely in the next few years, to the point that the panels will be cheaper, more efficient and more powerful. We are probably going to be moving within the next 4 years or so and I don't want to go and sell the house and have prospective buyers look at the panels and say "we can get better ones so take them off" and we're stuck with a $20K bill. Am I right here?
\GoBillsInDallas/ Posted November 12, 2013 Posted November 12, 2013 LOL who told you that solar panels would cut your energy bill by 33%.
BuffaloBill Posted November 12, 2013 Posted November 12, 2013 I looked into this when we lived in Dallas about four years ago. As an investment it sucked. If you want to do it for philosophical reasons then so be it. I would carefully research the situation and be very leery of signing a 20 year lease.
Joe Miner Posted November 12, 2013 Posted November 12, 2013 You are correct. Putting them up is a "no brainer."
Captain Hindsight Posted November 12, 2013 Posted November 12, 2013 I wouldn't think 33%. That seems high. In terms of how much solar will improve in the next few years, I wouldn't say immensely. The technology is pretty much at its peak efficiency as I understand it. There are ways to enhance how much you can get (proximity, south facing ect.) A 20 year lease, thats probably about the normal payback period right now so that number isn't out of left field.
Doc Posted November 12, 2013 Author Posted November 12, 2013 LOL who told you that solar panels would cut your energy bill by 33%. I wouldn't think 33%. That seems high. In terms of how much solar will improve in the next few years, I wouldn't say immensely. The technology is pretty much at its peak efficiency as I understand it. There are ways to enhance how much you can get (proximity, south facing ect.) A 20 year lease, thats probably about the normal payback period right now so that number isn't out of left field. The analysis provided to me said "electric usage offset 37%" and "electric bill offset 35%." Now I won't say I'll get those, but any savings would be good, considering I'm not paying anything. As for being at its peak efficiency, if that's true, then I should do it.
Captain Hindsight Posted November 12, 2013 Posted November 12, 2013 The analysis provided to me said "electric usage offset 37%" and "electric bill offset 35%." Now I won't say I'll get those, but any savings would be good, considering I'm not paying anything. As for being at its peak efficiency, if that's true, then I should do it. I happen to be in a program that studies this kind of stuff. I'll look into it more if I have time this week and see what I can find
Fan in Chicago Posted November 12, 2013 Posted November 12, 2013 (edited) The analysis provided to me said "electric usage offset 37%" and "electric bill offset 35%." Now I won't say I'll get those, but any savings would be good, considering I'm not paying anything. As for being at its peak efficiency, if that's true, then I should do it. I don't understand something - you are saying these panels are free to you ? If yes, then why would you be stuck with a $20K tab ? If you are paying $20K, it just sounds like a lousy payback to me even at 20 years. wild calc - $200 pm electricity bill x 0.35 offset x 12 months = $840 per year. Discounted, it will take an awful long time (~ 30 years I venture to guess) to pay off even under this optimistic calculation scenario. Even if you get a tax break, it will be several years simply to breakeven. What am I missing ? Edited November 12, 2013 by Fan in Chicago
Alaska Darin Posted November 12, 2013 Posted November 12, 2013 If you're planning on moving, save your money.
Doc Posted November 12, 2013 Author Posted November 12, 2013 I don't understand something - you are saying these panels are free to you ? If yes, then why would you be stuck with a $20K tab ? If you are paying $20K, it just sounds like a lousy payback to me even at 20 years. wild calc - $200 pm electricity bill x 0.35 offset x 12 months = $840 per year. Discounted, it will take an awful long time (~ 30 years I venture to guess) to pay off even under this optimistic calculation scenario. Even if you get a tax break, it will be several years simply to breakeven. What am I missing ? No, there's no money down. I'm just thinking about the worst-case scenario If I move, go to a state where they (Solar City) aren't, and the new owner doesn't want to keep the panels.
ExiledInIllinois Posted November 13, 2013 Posted November 13, 2013 Interesting. I have to chuckle... My father has had a solar panel on his roof for almost 25 years! It was installed in the mid 1980's! All it does is help (I said help/boost) heat his house in the winter... It is giagantic and still kicking! LoL... That thing has got to be the "Model T" of all solar panels... 25 years... My brother was selling them when he was younger and my parents felt sorry for him and bought one... Probably his only sale! LoL... Anyway... That is all I know of solar panels... LoL... Oh, and my Goal Zero Adventure 10 keeps my phone kicking! :-)
Marv's Neighbor Posted November 13, 2013 Posted November 13, 2013 If you're planning on moving, save your money. Exactly! They may turn buyers away from considering your house.
Nanker Posted November 13, 2013 Posted November 13, 2013 What do you do when your roof needs replacing in 8 years?
Marv's Neighbor Posted November 13, 2013 Posted November 13, 2013 What do you do when your roof needs replacing in 8 years? He'll be gone in 4 so no worries! BUT, after they install the panels, the roof may not last another 8 years.
Doc Posted November 13, 2013 Author Posted November 13, 2013 Exactly! They may turn buyers away from considering your house. That's my main concern. What do you do when your roof needs replacing in 8 years? He'll be gone in 4 so no worries! BUT, after they install the panels, the roof may not last another 8 years. They'll have someone assess my roof before installing the panels. If it passes, they'll install them and if there is a problem like a leak, they'll replace the roof.
Steve O Posted November 13, 2013 Posted November 13, 2013 http://phys.org/news/2013-10-scientists-breakthrough-solar-technology.html According to this article the technology will soon be cheaper and more efficient due to some research at a college in Singapore. It's on the world wide web so it has to be true.
Rubes Posted November 13, 2013 Posted November 13, 2013 We put some on our roof two years ago, mostly because of all of the tax rebates and credits available at the time. We ended up paying about 1/3 of the actual cost because of it. I haven't done the calculations in a while, but I believe they produce about 50%-60% of our electricity use. I haven't tried calculating the cost savings or how long it would take to make up the cost. We did it largely for philosophical reasons, as well as living in one of the sunniest places in the country. I'm glad we did it.
apuszczalowski Posted November 15, 2013 Posted November 15, 2013 I have seen this around here, theres a company that is going around and they are basically leasing your roof space from you to install the panels. They put them in at no cost to you, hook them up and pay you a certain amount as a fee for leasing the roof space. They make money on the tax rebates and other incentives from the government for using solar, and they are affiliated with a university that can use this info to study the solar technology. Its not a bad deal and around here it does save you some money on hydro because the government is paying many times more then what you pay them for the hydro when they "buy back" the hydro you are producing.
Doc Posted November 15, 2013 Author Posted November 15, 2013 I think it's a good deal...for right now. But as Steve O's link showed, the tech should be getting cheaper and better within a couple years.
QCity Posted November 15, 2013 Posted November 15, 2013 (edited) Have a friend in Rochester who installed solar panels a decade ago, he said he saves between 35%-45% per month depending on the season. He recouped his initial investment back in 9 years and said the panels are rated to last 20-25 years, so the rest is gravy for him (especially since electricity costs are rising). He said back when he installed he only got something like $2,000 back as a tax credit and that the current 30% tax credit makes it an incredible investment. If I had a house I planned on living at for 20+years I would consider it, but since you are moving in a few years I probably wouldn't install them. Edit: I should mention that him and his friend did 95% of the install, including the inverter and wiring. So I guess that saved some $$$ but even paying for the install it seems sound. Top 10 Solar Myths Edited November 16, 2013 by QCity
Recommended Posts