[American Solar One]

Happy Thursday!

Believe it or not, not every home is a good candidate for solar. When we work with homeowners, we need to look at

1) Is the roof structurally good?
The roof should be in good shape. A roof over 15 years old would need to be replaced before going solar. Luckily the Federal Tax Incentive would also apply to the roof in a solar build.

2) Is the solar aesthetically pleasing?
Some homeowners do not want panels on the front of the home. Fortunately in Florida, unless there is shade from a lot of trees, we can generally utilize all large roof areas.

3) Is the cost worth it?
Of course, this is the biggest question. It would not make sense to go solar if you ended up spending more for the system than you currently pay for your electric bill. It is best to think of solar as replacing one source of energy with another, rather than as an investment like a mutual fund or annuity. Yes there is a ROI on the system, just like there is on almost every home improvement project, but also with the added benefit of actual $ savings you get from free energy v the cost of labor, production, generation, and transportation of traditional energy sources (coal, oil, gas, nuclear). The difference is that with solar, you know exactly how much you will be paying, and we can design a flat payment plan that helps you budget and costs less than you're currently paying!

You also need to consider how long you plan on staying in your home. If this is your "forever home", it most likely is a "no-brainer" in Florida. If you think you'll be moving in 2-3 years, it probably wouldn't make sense.

Beyond that, you need to consider the Federal Tax Incentive. While you should always consult your tax advisor, the general rule of thumb is that you need to have taxable income to qualify for the incentive. As the incentive is 26%, it's a fairly large portion of the overall cost that the government will pay for IF you qualify.

Luckily in Florida, we get so much sun, that most homeowners can still save money even without the Federal incentive!

Finally, you can always Project Sunroof to see your home's solar profile. Not all recent homes will show, but most of you can see your home. Bright yellow is the best place on your home to put panels

Feel free to give me a call and we can see if solar is good for your home
Chris
321-960-0052
American Solar One - Your Central Florida
Solar Pro's

[retiredguy123]

I checked the Project Sunroof link, and their analysis seems to have several flaws:

1. They assume that the solar system will completely eliminate your electric bill. Even if the system provided all of the electricity for your house, you will still have a bill from the electric company.
2. They provide no consideration for the time value of the initial money that you pay for the system, even though they do assume that the cost of electricity will increase every year.
3. They do not consider that, after 20 years, the solar system will be at it's life cycle end, which means that it will be almost worthless. But, if you invested the money instead of buying a solar system, you would still have your entire principal investment after the 20 years.
4. There is no cost for maintenance of the system for 20 years. And, there is no consideration of the cost to remove and re-install the panels when you replace your roof, which is an almost guaranteed cost in The Villages.

OP, I think it would be helpful if you could address these points for those considering a solar system.

[American Solar One]

Originally Posted by retiredguy123

I checked the Project Sunroof link, and their analysis seems to have several flaws:

1. They assume that the solar system will completely eliminate your electric bill. Even if the system provided all of the electricity for your house, you will still have a bill from the electric company.
2. They provide no consideration for the time value of the initial money that you pay for the system, even though they do assume that the cost of electricity will increase every year.
3. They do not consider that, after 20 years, the solar system will be at it's life cycle end, which means that it will be almost worthless. But, if you invested the money instead of buying a solar system, you would still have your entire principal investment after the 20 years.
4. There is no cost for maintenance of the system for 20 years. And, there is no consideration of the cost to remove and re-install the panels when you replace your roof, which is an almost guaranteed cost in The Villages.

OP, I think it would be helpful if you could address these points for those considering a solar system.

Hi retiredguy123

The project sunroof is more to give you an idea of the solar profile for your home than actual numbers. Its a Google webpage, not specific to any particular solar company. Sorry for the confusion.

1. They assume that the solar system will completely eliminate your electric bill. Even if the system provided all of the electricity for your house, you will still have a bill from the electric company.

Yes, that particular page assumes 100% coverage, however an actual design would need to know your historical usage. Again, its just to get an idea if your home could go solar, it's not specific to your home because it doesn't know how much electricity you use.

2. They provide no consideration for the time value of the initial money that you pay for the system, even though they do assume that the cost of electricity will increase every year. .

What initial money? Are you planning on paying cash for the system, or are you using a finance option?

3. They do not consider that, after 20 years, the solar system will be at it's life cycle end, which means that it will be almost worthless. But, if you invested the money instead of buying a solar system, you would still have your entire principal investment after the 20 years.

The panels have a 25 year linear production guarantee. They will still be 86% efficient at year 25 as they are day 1.

Yes, if you are looking for an investment vehicle, you wouldn't buy solar. You buy solar to reduce or eliminate your electric cost over time. It's not an annuity or mutual fund, solar is producing electricity. You pay for electricity now, this is a replacement. Make sense?

4. There is no cost for maintenance of the system for 20 years. And, there is no consideration of the cost to remove and re-install the panels when you replace your roof, which is an almost guaranteed cost in The Villages.

Correct. No maintenance cost. PV panels do not need to be washed. There are no moving parts. Everything has a warranty.

I would not recommend removing and replacing your roof once you have solar. You would replace the roof prior to solar, get the 26% Federal Tax Incentive, and then not worry about it. The panels protect the roof. It makes no sense to pull panel off to replace a roof surface that was protected from solar radiation and weathering for 25 years

Thanks for your time. Have a great day!

[retiredguy123]

Thanks for the comments.

1. It may not be specific, but it purports to show actual savings. You can't have it both ways.
2. The Project Sunroof profile assumes a cash investment. There are no interest payments included. Invested assets have income value, but the profile totally ignores that fact, but cranks in an inflation increase in electric costs every year. Invested assets could easily overcome inflation.
3. I am just saying that a 20 year old solar system will not be worth what you paid for it. But, invested assets will maintain their initial principal amount forever.
4. A lot of people in The Villages don't have a choice about replacing their roof. Their insurance company requires it, usually at 15 years.

If you are selling solar as a way to save money, then do an apples to apples comparison.

[jimbo2012]

Chris is exaggerating the benefits, without battery storage it's not a big saving only when the sun is out.
Most of us use more energy after the sun goes down.

You need a battery storage system for residential efficiency this would add about $7,000-$12,000 to the cost of a system.

Then you can cut the cord to the utility.

So is the panels cost say $25K add another $10K or $35K for complete system.
Chris says such battery systems are too expensive. (his words)

Without batteries it's like car without tires

Chis uses Hanwha Q Cells solar panels (A korean company with a plant in Ga) they come with a 12 year product and 25 year linear performance warranty.

The linear performance warranty guarantees the performance of a panel will stay above a specified degradation rate (the decline in output that all solar panels experience)

[villagetinker]

Just a clarification, you do not need batteries unless you need power during a blackout. The solar array will generally produce excess power during the day (your meter runs backwards), and you use the power from the grid at night (the meter runs forward). This is the 'net' metering that is typical in Florida. The downside of this is the price you PAY for power is higher than the money you get credited for the power you send to the grid. This is just one of the reasons solar in Florida is hard to justify.