[Papa_lecki]

What’s your monthly electric bill? $75 or $100? A $15,000 system has a 150 month payback (without considering the time value of money) - or more than 12 years. More if the panels can’t provide 100% of your power.

How long do the batteries last? Didn’t even consider the source of the batteries or the cobalt in the batteries (you can google where cobalt is mined)

How is your roof? Do you need to replace now?

I assume they can withstand hurricane winds? Did you talk to your homeowner’s insurer?

As TInker said, make sure you OWN the system.

[GrumpyOldMan]

Originally Posted by Papa_lecki

What’s your monthly electric bill? $75 or $100? A $15,000 system has a 150 month payback (without considering the time value of money) - or more than 12 years. More if the panels can’t provide 100% of your power.

How long do the batteries last? Didn’t even consider the source of the batteries or the cobalt in the batteries (you can google where cobalt is mined)

How is your roof? Do you need to replace now?

I assume they can withstand hurricane winds? Did you talk to your homeowner’s insurer?

As TInker said, make sure you OWN the system.

You left off selling excess back to the grid.

[LuvtheVillages]

Originally Posted by GrumpyOldMan

You left off selling excess back to the grid.

Selling excess back to the grid will be at the wholesale rate, not the retail rate that you pay. This quote from SECO's web site:

Net metering captures the “net” energy used monthly by members with interconnected systems. “Net” is the difference between energy purchased from SECO and energy produced by the solar system. Members who produce more energy with their solar system than they actually use generate power back into SECO’s electric distribution system. These members who generate excess power are in essence small-scale wholesale power providers. Thus, they are credited by SECO for the power their solar systems produce at SECO’s wholesale rate.

[daniel200]

Unfortunately, the time value of money is about 1.5% in this interest rate environment using long term US bonds as the base. So that calculation is much less important than if US bonds traded at 6%

But, for the current price of electricity in Florida, I do not know of any home solar power with a payback of less than 10 years. And most are much longer than that. My brother in law installed panels up north 5 years ago and will never recover the cost.

[retiredguy123]

Originally Posted by daniel200

Unfortunately, the time value of money is about 1.5% in this interest rate environment using long term US bonds as the base. So that calculation is much less important than if US bonds traded at 6%

But, for the current price of electricity in Florida, I do not know of any home solar power with a payback of less than 10 years. And most are much longer than that. My brother in law installed panels up north 5 years ago and will never recover the cost.

I think it is more appropriate to use the time value of money percentage of a diversified portfolio of stocks, bonds, and cash, which is closer to 6 percent, not 1.5 percent. The risk level of the time value calculation should be equal to the risk level of the solar system investment, which is by no means a guaranteed investment. I don't think anyone should be invested in long term bonds. Very risky in this low interest rate environment.

[justjim]

Originally Posted by retiredguy123

You will definitely not get the facts from a solar contractor who is trying to sell you a solar system.

I agree you are not likely to get the correct information from
a solar contractor unless he/she was your father or mother. I believe post #3 is correct.

[Toymeister]

I can provide two addresses that had solar. Here are their stories:

One had solar, batteries and solar water. He claimed he paid 80k. Had the system three years. Attempted to sell the home 30k above (non solar) market. It took seven months to sell (in 2020). He sold for 15k below market. Real estate agent stated buyers are fearful of the maintenance on the system.

Second home:. Owner was absolute in his belief that as a "business" solar pays. Installed when he was in his early seventies. 3.5 years later cancer took him. I was in that home, I can testify that the cost of solar would have better been spent on items that appeal to home buyers, basic cosmetics.

There is a third home that I won't say where it is. Owned by a self identifying disabled person (seems to be a social security claim), patio villa. Financed solar to 'save' money. I'm not sure how that math is working for the owner. I mentioned the disability thing because the owner is clearly not wealthy.

[joseppe]

Originally Posted by GrumpyOldMan

Also, ask how much it will increase the value of your house, ie. will it increase the market value of your house?

And then ask yourself if you are only doing it to save money, or to decrease your dependence on the grid, or if you want to feel good about helping reduce your carbon foot print. All reasonable considerations. I am NOT saying it will do any of those things, but only that they are also considerations.

I've had solar on a previous home. It hindered the sale of the property because it was a Leased system. It did save a small amount every month, but cost of electricity was higher than our rates in the Villages. With the rates here (about 12cents per KWH) I would not consider Solar to be cost effective.

[MandoMan]

Originally Posted by retiredguy123

OP, when evaluating the monetary aspects of a solar system, make sure that anyone who does an analysis includes the time value of money. If the system costs $20,000 to install, you will lose the investment income from that money, and when the system reaches it's useful life span, you will lose the entire $20,000 investment because the system will be worth nothing. In my case, a solar system would cost about $20,000. My conservative diversified portfolio of stocks, bonds, and cash earns an income of about 6 percent per year, and will always maintain the $20,000 principal. So, for my house, if I buy a $20,000 solar system, I would lose $1,200 per year in income, and I would lose the $20,000. That is about the same amount as my entire annual electric bill. So, even if the solar system reduces my electric bill to zero, I would not benefit at all financially from buying the system.

Many solar contractors and other proponents of solar systems, will give you a payback analysis that totally ignores the time value of money. And, they ignore the fact that, over time, the system will depreciate in value to zero. Also, when you replace your roof in about 15 years, you will incur a large expense to remove and replace the solar panels. Another point is that some solar contractors will give you a 20-25 year parts and labor warranty on the system, which is totally unrealistic. No contractor can expect to honor that type of warranty on any equipment installed on your house.

Well said. I like the idea of having no electricity bill, but the fact is, I keep the AC at 74° all summer, but my highest electric bill was $155. (True, I don’t cook much and seldom use lights.) Come to think of it, I pay less for electricity in a year than I pay for pool maintenance. For the reasons you give, solar electricity is not cost effective for me. It’s more cost effective in places where the cost for electricity is much higher.

The good argument for it is that it is harnessing energy otherwise wasted and taking pressure off power generating plants. Does making the panels require a lot of energy? Yes. How much? I don’t know.

[bruce213]

Wow all your answers and no one has a solar panels. Well i do since Dec of 2019. Cut my ele bill by 75%. I produce a pinch more power then i use over the year. The problem is you have to be connected to the grid (about a buck a day ) and you sell your power to ele company at .09 cents and buy back at .11. My ROI will be around 16 years if there are no increases in price fewer if energy prices go up. True i lose the interest i could earn, but i feel I'm also helping my planet. If you want to go deeper PM me. Good luck.

[biker1]

Thanks for posting. Can you share a few details? How big is the system (kWs or number of panels), how much did it cost you, do you have the micro inverters, and who was the installer? I didn't PM you because I thought others might want to see the details.

Originally Posted by bruce213

Wow all your answers and no one has a solar panels. Well i do since Dec of 2019. Cut my ele bill by 75%. I produce a pinch more power then i use over the year. The problem is you have to be connected to the grid (about a buck a day ) and you sell your power to ele company at .09 cents and buy back at .11. My ROI will be around 16 years if there are no increases in price fewer if energy prices go up. True i lose the interest i could earn, but i feel I'm also helping my planet. If you want to go deeper PM me. Good luck.

[skippy05]

Quick answer is "No". And when you need to have your roof replaced you are looking at huge additional fees.

[Luggage]

You have a really cheap Bill if you're only paying $100 a month. I average 1800 to 2400 a year with the thermostat set at 75

[Rwirish]

Few people have them. Way too many negatives.

[retiredguy123]

Many solar system proponents will claim that a solar system will increase the value of your house. But, if you install a solar system on a new house in The Villages, you will need a new roof in just 15 years or possibly lose your homeowners insurance. At that point, you will need to pay a solar company thousands of dollars to remove and re-install the 15 year old panels, just to replace the roof. So, even if the house had more value when new (which I doubt), at the 15 year point, I think the solar system will be essentially worthless.