There are many benefits to installing solar panels on your home, everything from lowering your energy bills, by as much as $84/month, to reducing your carbon footprint. Here are 10 things to consider before getting solar.
1. The costs
The price of solar panels has dropped 60 percent since the beginning of 2011. Together with federal and local tax credits and subsidies, that’s helped drop the national average of up-front costs to about $17,000. The savings will outweigh the initial cost over time.
Note: Going solar will usually raise your homeowner’s insurance premium; expect to see it increase by a few bucks per month.
2. The savings
Some options allow savings the day the system is live, where as others come with an upfront investment and provide greater returns over time. If you borrow money with a loan or qualify for a lease, you can often reduce your monthly electric bill immediately. If you decide to do a pre-paid power purchase agreement, or buy the system outright, you will have an upfront expense, but save more in the long run.
3. Types of panels
Not all solar panels are created equal. There are numerous manufacturers and a one-size-fits-all panel system may not work for every situation. Make sure your solar company is evaluating multiple manufacturers to find the best possible solution for your home. It’s not uncommon for solar providers to have special “arrangements” with certain manufacturers, make sure your interests are put first.
4. Power produced
When people sign a contract for solar power, one of the first things they want to know is, when can they stop paying for electricity and when will they start generating it. Installation isn’t going to happen overnight, but you should have a good idea of when your system will be producing, it can add or subtract from your savings. Different providers have been known to install in as little as 5 weeks to as long as 6 months. Longer installation times could cost thousands extra you hadn’t counted on. The faster your system is installed and operating, the more you save.
Production depends on a number of factors; trees, angle of roof, size of roof, temperature, latitude, degradation of panels and orientation. It is important to find a solutions provider who takes all factors into account and guarantees the system’s production.
5. Tax incentives
Currently the federal government provides a tax credit for residential and commercial properties that convert to solar energy by the end of 2016, which can take up to 30% off the cost of the system. California’s state rebate program has been exhausted, however, there are many local rebate programs. Your solar solutions provider will help you find the maximum rebate. It’s worth doing your due diligence to make sure you’re taking advantage of all the financial help that’s available to you.
6. The installation
After signing an agreement and before the solar panel installation, you absolutely must make sure you have the proper building permits. If you don’t, you run the risk of having to redo the entire project to meet certain restrictions. Wiring and installation generally take a few days. It can take anywhere from a few weeks to a few months between the time you sign the contract and the actual installation, however. Check online reviews at websites like solarreviews.com or diamondcertified.org to find out if your service provider has a great reputation. Look for a solar pro who:
• Offers a strong warranty. Be sure the inverter is covered for at least 10 years and the panels are covered for 20 to 25 years.
• Uses panels made by a manufacturer based in the U.S. That way your warranty will still protect you if the manufacturer goes belly up.
• Doesn’t outsource installation. There will be more accountability if things don’t go according to plan.
• Is licensed and bonded, and no major complaints have been filed with the Better Business Bureau.
• Can supply at least two recent customer references.
7. Type of roof
Roofs come in all shapes, sizes, and materials. Unfortunately, many solar companies will only install panels on composite shingle. If your roof is made of metal, Spanish tiles, or regular wood shingles, you may have been told solar wont work on your roof. If so, the company who told you that more than likely couldn’t install on your roof type. Solar panels can be installed on virtually any roof. Installing on composite shingle is very quick where as installing on Spanish tile requires different mounting systems and may take longer. Taking the time to find an installer with experience in your roof type will prove beneficial in the rainy season.
8. Lease or buy
Solar leases have become an increasingly popular option as a way to defray the up-front costs. Leasing companies will also usually pay for repairs and maintenance.
However, a permanent installation not only comes with tax advantages, but it will also likely increase the value of your home, as the new buyers will be able to save energy without the hassle of installation.
Note: If you decide to lease, make sure that you talk with the leasing company about transferring the lease if you sell your house. Some companies make this very difficult when you decide to sell. I know 1st hand from a sale of a client’s home that had solar. It was a nightmare.
Resources: completesolar.com, forbes.com
