Thinking about going Solar.

[newbury]

We hit 8F last winter. That is the coldest I've ever been in. Usually it will get into the high teens a few times during winter, and we've gone a full week with temps never getting above 30F.

That's a heat wave in the winter here.

Yup, lived in northern Vermont, we'd have several days where the temps never got above -30 °F.

 

[DarkBlack]

Some states have very good incentives. My brother lives in MA and put a $30K solar system on his house. It covers 100% of his electric usage. He just completed his first year, and it did cover 100% of his usage. The Feds gave him 30% back on his taxes. $30K - $9K = $21K. MA offers an incentive based on electricity produced over 10 years. His annual payment from MA is $2K = $20K. So after 10 years, his out of pocket cost is $1K. His electric bill was $150 a month. 12 months = $1800 x 10 years $18K, and he has received 10 years of electricity worth $18K for an out of pocket expense of $1K.

Show me a stock or mutual fund where you can know up front that if you invest $30K, you are guaranteed on 10 years to get all you money back plus $18K. If you live in MA, you are crazy not to invest in solar. I looked into doing this on my home in CT, but CT offered me $3K towards solar. Not worth it to tie up that kind of money.

Easy. Even with fellow taxpayers paying for 30% of his installation, 48k back on $30k, is a 60% gain over 10 years, which is only 6% per year. 8% is the proven stock market average. REITs pay over 10%. For those who do solar for the fun as a hobby, or because theyæ±*e off the grid- great, that totally makes sense.
But saying it痴 a great investment for investing purposes for those with grid power in the north east, I値l say again- there痴 easier ways to make money with that money

 

[ultrarunner]

Or the home might already have solar and you bought it without a premium... actually a discount as no one could explain the system...

 

[Budweiser John]

Easy. Even with fellow taxpayers paying for 30% of his installation, 48k back on $30k, is a 60% gain over 10 years, which is only 6% per year. 8% is the proven stock market average. REITs pay over 10%. For those who do solar for the fun as a hobby, or because theyæ±*e off the grid- great, that totally makes sense.
But saying it痴 a great investment for investing purposes for those with grid power in the north east, I値l say again- there痴 easier ways to make money with that money

Factoring in the historic and predicted fact that energy costs have risen/will rise 4 to 5% per year erodes your ROI calculation.

 

[NorTracNY]

Beware of solar leasing. The sales people make it sound great, but you are paying retail to high-retail for all of the components. If you can outright purchase, even with outside financing, that is better. The other disadvantage of a solar lease is the solar company requires them to approve of the buyer if you sell your property. Not something I would want.

Beware of any contract. For us, leasing was the no-brainer approach. The lease was a one time payment, not a monthly lease. The lease allows us major guarantees. We have 20 years of guaranteed production. The system has underperformed every year, but the company sends us a check each year. It was slightly oversized, so about half the years the electric company credits us. The panels will lose about 0.5% of production each year, but the inverter is the expensive item which might only last ~15years. Having the system be a lease, I don't need to worry about it failing.

As has been mentioned, every state is different. In this screwed up state, the electric company has to pay me retail for electricity I produce. Credits carry over and the bill is trued up every 12 months. I am grid tied, so I have to pay $21.82/month. The years the panels produce more than I use, the credit goes towards the next month(s) connection cost.

 

[dieselscout80]

In addition, I have an off-the-grid solar powered pump in a deep well. Five panels (1.4kw) run a DC pump, so there is no inverter, no batteries, etc. When the sun shines, it pumps water (about 20 gallons per minute). I use this for supplemental summertime irrigation in my orchards. That whole system (panels, pump, controls) only cost me $3700. It's worth it to me just to have a back-up supply of water when the power's out and my main well won't pump.

Mike, can you provide some more details of your solar well system?

Carey

 

[AndyMA]

Easy. Even with fellow taxpayers paying for 30% of his installation, 48k back on $30k, is a 60% gain over 10 years, which is only 6% per year. 8% is the proven stock market average. REITs pay over 10%. For those who do solar for the fun as a hobby, or because theyæ±*e off the grid- great, that totally makes sense.
But saying it痴 a great investment for investing purposes for those with grid power in the north east, I値l say again- there痴 easier ways to make money with that money

What this analysis messes is that the cost of electricity hence the value IOC solar increases every year. 20 year average increase is 4% per year

Andy

 

[JPRambo]

Thanks TnAndy. I have thought about this, but not totally sure I will need it in the house I plan to build in Georgia. i will be asking the neighbors about the reliability of the power in the area during storms and winter time storms. I have just got the power to my property and no power used yet. I will be camping on it periodically till February, March, April when I plan to retire and build.