Friday, November 18, 2022

Can You Sell Solar Panels

Youre The Solar Expert

PV-TV EPISODE 4: How much solar power can a home sell back to the grid?

As a solar installer, you probably have a pretty good sense of when used solar panels are a smart option for your customers, and when theyre better off buying new. Follow your instincts, and do your best to provide each client with the solution that will best fit their needs.

Do that, and you should end up with plenty of referrals and repeat business from new and used solar buyers, alike.

How Much Can You Sell Power To The Grid For

Much like the savings you may make from using solar power, this depends on many factors. If you live in an area with a high concentration of daylight hours, your system will likely produce excess energy each month.

You may then be able to form a deal with an energy company in which you agree to have your excess energy returned to the grid for a fixed price. However, realistically, its unlikely that you will make a significant profit from net metering unless you have solar panels installed on a large public building and have the time and means to turn it into a business. Its often just a couple of dollars. If you have neighbors with solar panels, its worth talking to them to see if they have managed to make any money back from theirs.

Limits On Selling Solar Energy

You should also check and see if your utility or state impose limits on how much surplus electricity you can sell back to the power grid. Many states have limits. Knowing the cap might help you decide how many solar panels you want to install. On the other hand, if solar net metering limits are generousor non-existentyou may choose to be more liberal in the size of your solar panel system.

However, net metering should not be the primary consideration when designing a household solar panel system. Its usually more cost effective to focus on roof angle, orientation, and area, as well as your average electricity usage, when sizing your system. Remember that when you install a solar energy system, there are options for upgrading to solar home heating and cooling, solar pool heater installations, and more.

There are very few states in which surplus solar energy sales can exceed a consumers average usage. This makes sense, since solar net metering policies are designed to encourage residential solar panel usage, not the building of commercial scale solar farms. In fact, almost half of states that allow net metering limit it to 1 megawatt .* Others have even smaller caps: Vermont and Wisconsin allow net metering for systems up to 20 kilowatts .

Massachusetts offers a generous 10 MW limit for certain systems. New Mexico tops that with an 80 MW cap. A few have no net metering capacity limitnamely Arizona, New Jersey, and Ohio.

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What Is Solar Power For The Home

Homeowners who install photovoltaic power systems receive numerous benefits: lower electric bills, lower carbon footprints, and potentially higher home values. But these benefits typically come with significant installation and maintenance costs, and the magnitude of the gains can vary widely from one house to another. This article will help homeowners make the financial calculations required to determine the viability of solar power in their homes.

What Skills Does A Solar Salesperson Need

Wholesale solar panels.

Ahlman stressed the importance of time and data management to keep track of important information and manage a busy schedule of meetings. A solar salesperson needs to coordinate calls and visits with busy prospects. Arriving late to an appointment or double-booking someone for a call can quickly sour a relationship.

Vorobyova noted that salespeople need to be able to quickly and clearly explain how much in additional savings a household can enjoy as a result of state and local solar policies.

Communication and self-awareness helps, said Vorobyova. You have to know how to talk to pretty much everybody. Every single day, you meet so many different people from different backgrounds. The majority of them have never looked into solar. The most important skills communication and being a people person.

Ahlman agreed. Speaking is very important being clear with what youre saying and communicating clearly what our promotions are.

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Does It Actually Pay To Go Solar

Lets do the numbers!

We are going to assume that you own the home and purchase solar .

Remember that solar increases home value at about $4.00/watt.

We sell most systems at $4.50-$5.00 per watt. Lets average at $4.75/watt. Thats before we add in the tax credit.

Lets add the tax credit in.

$4.75/watt * 70% = $3.33/watt

$3.33/watt. Thats how much you pay when you factor in the 30% tax credit

You pay $3.33/watt and your home increases in value by about $4.00/watt

Lets apply that to an average 4kW system.

Net Cost: $13,320 with tax credit

Equity Increase: $16,000

It pays to go solar

If you own the system!

And we havent even calculated the short-term bill savings, long-term returns, selling high and buying low with NEM Time of Use.

The positives just keep adding up.

I want to ask you: What is the number #1 thing you learned from this article?

Answer down below in the comments, and Ill be sure to read and reply to you.

Feel free to ask any questions you might have too!

Net Metering State Laws

The first depends on where you live, since not every state allows net metering. Among those that do, the policies varysome are more favorable for the consumer than others. There are 44 states, as well as the District of Columbia, that already have mandatory net metering rules. Alabama, Mississippi, Tennessee and South Dakota do not have net metering policies. Texas and Idaho do not have mandatory state-wide net metering rules, but some cities and energy providers in those states offer net metering.

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Tax Incentives Can Help A Lot

Homeowners can receive a one-time tax credit of 26% off the purchase price of a solar system. If the initial solar panel investment typically costs around $20,000 in your area, the tax credit would net you $5,200 when you next file taxes.

What’s more, some utilities offer incentives and rebates for installing solar power. Check with your local energy supplier to see if they offer any incentives.

More And More Homes Are Running On Sun: Its Not Just California

How to Buy or Sell a House with Solar Panels!

One piece of good news for home sellers with solar panels is that the residential solar market is holding strong. Despite the Section 201 solar tariffs that put pressure on the solar market as a whole, nearly 315,000 Americans added solar power to their house in 2018, representing annual growth of 8% for the residential sector.

California remains the uncontested leader in solar with enough capacity to supply 6.3 million homes . But states outside the top 10 solar leaders accounted for 25% of the share of residential installation sales in 2018 with Texas and Florida being stand-outs.

According to the Solar Energy Industries Association, the costs for installing solar panels has dropped more than 70% over the last decade and the market continues to diversify as more national and regional installers enter the picture. The 30% federal solar tax credit, which will start to decrease in 2020, has also made solar more affordable for many Americans.

Even as the market broadens across the country, homeowners whove opted to install solar still have to contend with a few logistics when the time comes to sell their house, including whats still owed on their system lease, the age of their panels, and making sure buyers understand the advantages of solar.

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Electric Plans For Solar Owners

Definitions:

TDU: As your local Transmission and Distribution Utility, charges to maintain the lines that deliver electricity to and from your homes.

Retailer: The Retail Electricity Provider you choose resells you electricity and bills for delivery on behalf of your TDU.

Plan: The plan you choose sets the monthly- and/or usage-based costs you pay for electricity, as defined by the Electricity Facts Label .

Term: The length of your contract in months.

ETF: An Early Termination Fee for quitting your contract more than 14 days early .

Rate Type:Fixed rates guarantee the same pricing terms for each month of the contract. Time-of-Use plans charge predefined rates for usage during peak vs. non-peak hours. Indexed rates vary with indices such as the wholesale price of electricity or natural gas.

Base /mo: A monthly fee to cover administrative or other non-usage-based costs.

Import /kWh: The rate you pay for each kWh of electricity you consume from the grid.

Export /kWh: The credit you earn for each excess kWh of electricity you supply to the grid.

RTW: Real-Time Wholesale prices update every 5 minutes with supply/demand and are published by ERCOT here. They average ~3 ¢/kWh, but can spike up to 900 ¢/kWh during peak demand periods.

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How Does Net Metering Work

As mentioned above, net metering allows you to sell electricity back to your utility company if you produce more than you need at any given time for your home or business. Your local utility company will sign an agreement with you, the solar array owner, and based on the kilowatts of your solar system and its annual production capacity, will determine what exactly your monthly bill will be for this service.

For instance, if you produce more than your home consumes in one month, you can sell any surplus back to the utility and they will credit your account. The exact terms can vary from company to company however, many companies today offer attractive deals to solar array owners such as low rates and even cash back incentives. If you decide to go solar through a local installer or contractor, theyll make these arrangements for you so all you have to do is enjoy the savings on your energy bills down the line. But if youd rather install the panels yourself than hire an installer or contractor, then arranging net metering agreements directly with utility companies will be a must.

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Can I Make Money Selling Power Back To The Utility Company

Its absolutely true that solar energy can be a great financial investment. But it isnt because of the money you make, its because of the money you save.

If you want to sell your solar power to generate income, it unfortunately doesnt work that way. You cant exactly sell the electricity your solar system generated back to the utility. However, one of the biggest benefits of solar energy is the impact on your finances. Your solar system will keep money in your pocket that youd otherwise be dishing out to the utility company for your monthly electricity bill.

While its true some large solar developing companies can make money by installing a solar system on leased property and selling that electricity back to the person who owns the property, this wont be the case for your average solar investor.

However, there are policies in place to guide how utilities compensate you for the energy your solar system generates. If you have a grid-tied solar system, you can send the solar electricity to the grid, and youll receive a credit from the utility or they will purchase it at a nominal, whole-sale price. But, these compensation policies will make you little money – theyre more like a free way to store your electricity.

Questions To Ask Your Contractor

How much extra can you make selling your solar power ...
  • Does the estimate include taxes, permit costs, a bi-directional meter, electrical service upgrades, and ongoing maintenance?
  • What kinds of warranties are provided on labour and product?
  • What projected electricity rates are being assumed to calculate any potential payback, including the price paid for excess electricity?

Follow our tips for hiring a contractor to ensure you feel confident in finding a supplier that best fits your projects needs.

Qualifying homeowners may be eligible for financing to assist with the cost of installation through our Home Energy Efficiency Loan.

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Promote The Reputation Of Your Solar Installer To Put Buyers Minds At Ease

If you had your solar panels installed by a reputable company in the area with a recognizable consumer brand, highlight that in your marketing materials. This will allay buyer concerns about the quality of your solar panel installation.

According to EnergySage, the top 5 solar panel installers nationally include:

  • Sunrun

Calculate Your Lump Sum

Our online calculator will generate an instant valuation of your solar PV FiT. The valuation is based on todays market value for your Solar PV Feed in Tariff in real time, however the final figure is subject to us performing a quick technical survey to confirm the performance of your PV system. Enter your contact details and Solar PV system information into our calculator to find out how much your cash lump sum will be. Our calculator is easy to use, free and provides an instant online quote.

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How Much Does A Solar Panel Cost

Prices have been coming down steadily over the years. The total cost will depend on how many kilowatts of power your array will generate. According to consumer reports, after solar tax credits are accounted for, the cost for a solar panel system on an average-sized house in the U.S. in 2021 ranges from $11,000 to $15,000.

What If I Financed My Solar Pv System With A Solar Loan

How to make $100,000 your first year selling solar | James The Solar Energy Expert

Purchasing a solar PV system with a solar loan allows you to own your system while paying the cost over time. With a solar loan, you still have access to the benefits that come with purchasing and owning a solar power system, like the 30% Federal Solar Tax Credit and Massachusetts SMART incentives.

Should you decide to sell your home during your solar loan term, you have a couple options depending on the type of loan:

  • If you financed your solar PV system with a secured loan, such as a home equity loan, you will need to pay off the rest of the balance before you sell

  • If you financed your solar PV system with an unsecured loan , you can sell your home before paying off your loan but you will still be responsible for paying off the loan.

Whichever route you take, keep in mind that your home will likely command a higher selling price because it has solar panels so you can likely pay off the loan with that additional revenue.

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Through Starting The Business Have You Learned Anything Particularly Helpful Or Advantageous

The number one thing Ive learned while starting and running multiple businesses is that you have to be ready to adapt. Sometimes your marketing just stops working, or the economy changes. Better to be lean and mean, and ready to pivot, when and if things change.

Early on, our direct mail campaign was killing it. However, soon our production started to slow down because we didnt have the ability to do appointments beyond a certain driving radius. The eventual solution was to develop solar phone sales and to open our own call center. We adapted by making a pivot and were able to move forward.

Demonstrate Expertise Through A Certification

As well as learning all about solar technology, its a good idea to demonstrate your knowledge to customers by obtaining a certification from the North American Board Of Certified Energy Practitioners NABCEP. They offer a range of certifications at reasonable rates. This certification has been shown to increase earnings potential by an average of $11,000 a year.

Professional Certifications

$390.00

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Why Solar Is Bad

Solar panels are bad for the environment because toxic chemicals are used in their manufacture. Manufacturing processes contain waste that can be harmful to human health and the environment. Old solar panels can become toxic waste due to the heavy metal content of solar cells and other contaminants.

What is wrong with solar energy? However, certain toxic chemicals and materials are used to make the photovoltaic cells that convert sunlight into electricity. Some solar thermal systems use potentially hazardous fluids to transfer heat. Leakage of these materials could be harmful to the environment.

How Net Metering Works

Can Solar Panels Help You Sell Your Home?

Net metering is a system designed as an incentive for people to adopt solar systems, both in residential and commercial sectors. It can be a great way of saving money by sending your excess energy back to the grid, you may be able to use this energy later on in the winter months, when your system is not producing as much solar power.

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How To Get Started In Selling Solar Panels

to conclude, heres a quick checklist of what you should do to get started in the solar system business.

  • Conduct initial and ongoing industry research. Consider obtaining a professional certification
  • Research the market and choose your niche. Look at whats out there and decide what you can do better.
  • Develop contacts in the solar industry and learn from their experiences.
  • Define, establish and begin your business!

If you have any questions or comments on how to sell solar panels, then please share them.

4.65

Why Do Realtors Hate Solar

Some agents turn buyers away from solar homes because the agents themselves do not understand them. There are a lot of agents who scare buyers away with their own opinions. McGill said. Its irresponsible, and its against officer ethics, by the way, but it does happen.

Why You Should not Get solar?

You will always lose your electricity during an outage. Most homes that use solar energy are not fully self-sufficient and need to be hooked up to the grid. This is because your system can produce more power than your home needs and the excess power has to go somewhere.

Why solar is a ripoff?

The companies misled consumers about the true costs of installing solar panels, provided shoddy craftsmanship, and left homeowners with higher utility costs, all while forcing them to sign contracts. unreasonable which leaves little possibility of appeal. Two companies stand out in particular: Vivint and SolarCity.

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