Utilities Push Back Against Growth Of Rooftop Solar Panels
One of the biggest thrills Lynn Krell and her husband experienced after they installed solar panels on the roof of their Hattiesburg, Mississippi, home was watching their power meter run backward as their utility credited them for excess power they sold back to the grid.
Those credits also showed up on their electricity bill, helping to cut their average monthly payments by $11 in addition to the $250 or so they saved during peak summer months by using solar power themselves.
But eventually the Krells began to question the value of the credits. The Krells learned that Mississippi regulations allowed utility companies to buy roof-generated solar power at a small fraction of the retail rate they charge to deliver that power back to customers homes. The Krells talked to rooftop solar owners in other states where more generous compensation rules allowed them to offset their entire electricity bills.
It felt unfair.
Im royally ticked, Krell, 63, said.
Mississippi, which gets a lot of sun, was one of the last states to give subsidies to people who install solar panels on their roofs in 2015, and those subsidies remain among the stingiest in the country. Thirty-seven states reimburse at the full retail rate, but Mississippi offers significantly less. That, experts say, is one of the reasons rooftop solar hasnt caught on there. Only 586 Mississippi households have the technology.
The question is who pays for it.
Is Solar Energy Worth The Cost
Typically, yes, solar energy is worth the cost. But whether or not its right for you depends on many variables youll need to investigate for yourself, including your location, tax rebates and incentives and net metering availability among others. While pros significantly outweight cons, the feasibility of a solar venture will vary based on the consumers financial means, living situation and space constraints.
What Factors Affect Whether Solar Is Worth It
Location will be the main factor deciding the potential value of solar for your home. This goes beyond just sunlight, and requires consideration of electricity rates, local policy and more.
Heres a quick glance at the situations that tend to make solar worthwhile:
- You have high electricity bills.
- Your roof receives a lot of sunlight.
- You have sufficient surface area on your roof.
- Your roof faces south or west.
- Your state or city offers solar incentives, rebates or exemptions.
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What Types Of Solar Panel Are There
There are three main types of solar panel to choose from monocrystalline, polycrystalline and thin-film. Monocrystalline is the most common option you will see on residential homes. This is considered to be the most efficient of all the solar panels, but it comes with a steep price as a consequence.
Polycrystalline panels are a little less efficient by comparison, but they don’t cost as much. Thin-film panels, on the other hand, have a much finer design, which makes them more flexible and portable. These arent as efficient as monocrystalline though. The best option for you will depend on your home and your budget.
And then there’s the question of solar panels vs. solar shingles. Solar panels are more traditional, and are lower in cost by comparison. Solar shingles are newer, and rather than sitting on top of your roof, are designed to look like your shingles, so they’re more aesthetically pleasing. However, solar shingles are significantly more expensive than solar panels.
Planned Renovation Or Extension
Just as with roof restorations, if you are planning to renovate within the next year or so, and the renovation will involve removing the existing roof then it would normally be best to hold off on the solar installation until after the new roof is completed. Often, it is possible to include in the budget the removal and replacement of an existing solar array into the renovation. At around $1,000 it often wont break the budget, however, it certainly doesnt make sense to install a solar system right before a planned renovation. Keep in mind that you will need to have a safe place to store the panels during the renovation.
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Solar Panels Are Dangerous
Some people mistakenly believe that solar panels are dangerous. Concerns surrounding roof penetrations, damage from wind- and snow-loading, and electrical hazards have some homeowners concerned that installing solar panels could spell the end of their house!
Fortunately, these fears arent entirely rooted in reality.
Heres the truth:
Solar panels are very safe devices. While its true that panels could damage your roof if theyre installed incorrectly, could break under the weight of heavy snow or intense wind if theyre engineered poorly, and could become a fire hazard if the electrician isnt up to par, all of these issues can be avoided by working with a qualified and certified solar installer.
If you have any doubts about the background of the professional youve chosen, spend some time reading their online reviews, browsing their website for services and offerings, and looking into things like certification and insurance.
California’s Solar Energy Net Metering Decision
Certainty has been the thing that’s hard to come by in solar, where frequent policy changes make the market a “solar coaster,” as one industry executive put it. Just as the expanded federal tax credits were taking effect, California on Dec. 15 slashed another big incentive allowing homeowners to sell excess solar energy generated by their systems back to the grid at attractive rates, scrambling the math anew in the largest U.S. state and its biggest solar-power market though the changes do not take effect until next April.
Put the state and federal changes together, and Wood Mackenzie thinks the California solar market will actually shrink sharply in 2024, down by as much as 39%. Before the Inflation Reduction Act incentives were factored in, the consulting firm forecast a 50% drop with the California policy shift. Residential solar is coming off a historic quarter, with 1.57 GW installed, a 43% increase year over year, and California a little over one-third of the total, according to Wood Mackenzie.
For potential switchers, tax credits can quickly recover part of the up-front cost of going green. Hurwitz took the federal tax credit for his system when he installed it in 2020, and is preparing to add a battery now that it, too, comes with tax credits. Some contractors offer deals where they absorb the upfront cost and claim the credit in exchange for agreements to lease back the system.
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Increase Your Lifetime Savings
Over the course of your systems lifetime, you will save money with solar from avoided utility payments. How much depends on a variety of factors like your zip code, energy usage, and more than you can learn about here. If you own your solar panels, youll see more savings over the lifetime of the solar system than you would with a lease or PPA.
If you purchase outright, the typical return on investment can range anywhere from 5-10 years and youll be generating your own clean energy on day one. There are options to finance the system through a home equity line of credit as well if you want to take advantage of the cash price. Solar loan terms can range between 8-20 years, and as soon as the loan is paid off your system will be producing clean energy for free!
With a lease or PPA, youll be paying a solar payment for the next 10-20 years. Some leases or PPAs also have escalator rates attached, where they will raise their prices in increments every year over the course of the agreement.
If youre going to make a monthly payment, it definitely is beneficial to pay off an asset. With a loan, you can pay off the system on your terms while reducing/eliminating your electricity bill and adding value to your home.
Should You Buy A Solar Panel Battery
The average solar panel cost quoted above doesnt include storage. A battery can add an average of more than $9,000 after the federal tax credit, depending on the size and other features. Specifically, Liberati says, the national average cost for a battery in the 10-12 kilowatt hour size range is about $13,000. Starting in 2023, all residential batteries will be eligible for the full 30% tax credit as long as theyre over 3 kWh in size. So you’d be able to deduct $3,900 from your taxes, leaving you with a post-tax credit price of $9,100 for the battery.
Although batteries are becoming more popular, most solar houses dont have them. Instead, most consumers send their excess energy to their utility as credit toward their power usage when the panels arent collecting enough, such as at night.
Without a battery, if your utility loses power, your home does, too, even when its sunny. The primary reason for this is safety, Liberati says. If your solar panel system is still producing electricity and sending it to the grid during an outage, those energized wires pose a serious safety threat to any utility workers trying to restore electric service to the grid.
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Solar Renewable Energy Certificate
A Solar Renewable Energy Certificate , sometimes referred to as a Solar Renewable Energy Credit, is another type of state-level solar incentive. After you install your solar power system and register it with the appropriate state authorities, they will track your systems energy production and periodically offer you SRECs as a benefit. You can sell your SREC to your local energy utility to provide payment thats typically considered taxable income.
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Are There Tax Rebates To Owning Solar Panels
Another bonus is that some states offer incentives to encourage you to install solar panels. The particulars will depend on your location, but you can get tax rebates and breaks to reward you for your sustainability.
Plus, the federal government provides tax credits to residents as well, so make sure you check what youre entitled to and take advantage. Again, though, if you’re leasing solar panels, you won’t be able to claim this rebate.
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Things To Know Before Buying Solar Panels
Thinking about installing some solar panels? Read this first
As energy becomes all the more expensive, solar panels continue to grow in popularity. Thinking about it: why wouldnt you want to take advantage of free renewable energy from the Sun? However, installing solar panels is never as easy or straightforward as one might think. Theres the initial expense to consider as well as selecting the best type of solar panel for your home. Then theres the whole process of getting them installed and hooking them up.
But, this shouldnt stop you from investing in solar panels. After all, once youve got them installed, theyll save you money on your bills, not to mention add value to your house. Thats why weve pulled together this guide on essential things you should know before buying solar panels.
Also check out the pros and cons of buying a home generator, and if you want to maintain a warm house this winter, here’s how to save money on your heating bills.
How To Calculate The Number Of Solar Panels You Need
Our solar panel cost and savings calculator is the fastest, easiest, and most accurate way to find out how many solar panels your home needs – and you dont have to do any math. Plus, well give you the average cost of a solar installation for your specific home and how much itll save you on your electric bills.
However, if you want to put pen to paper and work out the calculations for yourself, follow these four easy steps to find how many solar panels you need.
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How To Buy Solar Panels
Are you thinking about buying a solar panel system but dont know where to start? You came to the right place!
Weve created a guide that covers everything you need to know about buying solar panels and components, making it easy to figure out the right solar solution for you. With this guide in hand, youll be ready to make confident, informed decisions and find the best, most affordable solar components for your project.
Youll learn:
- Where to find solar panels for sale
- What you need to set up a solar energy system
- What type of solar panels to buy
- What equipment is necessary for a solar panel system
Solar Lease May Hurt Your Homes Value
Solar lease will NOT add value to your house because they are the personal property of the leasing company and not a fixture on your house. In fact, a solar lease or PPA can devalue your house. In general, people who own rooftop solar enjoy an added value to their home but not with the leases. Buyers shy away from them because they straight out dont like the deal or simply do not understand it. Some appraisers say that to many potential buyers a solar lease is a liability rather than an asset, and may drive people away.
In the Bloomberg article, Dorian Bishopp blames the solar panels on his roof for costing him almost 10 percent off the value of the home he sold in March. According to the Bloomberg article Scott Vineberg, a SolarCity customer, received multiple offers for his home in Scottsdale, Arizona, home he sold in January. Unfortunately, the lease made the deal more complicated because the buyers were reluctant to take over the contract and asked him to pay off the balance in advance, that is 10 years of payments.
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Battery And Charge Controller
Compatibility is important when setting up a solar kit. You need a solar panel that is compatible in terms of power, current and voltage with your battery and charge controller.
Check the max input wattage of your portable power station. Be especially careful when chaining several solar panels. You dont want to exceed the max wattage.
Also, check voltage requirements. For a 12V battery, get a solar panel with a max output voltage of 18V. A charge controller will step this down to a safe 12V.
If you have an MPPT charge controller, you can pair a higher-voltage solar panel with a 12V battery. The controller will convert the excess voltage into current.
Finally, check the max current and voltage your charge controller can handle.
Allow a 25% margin for both current and voltage, since solar panels sometimes have higher output than what is stated.
So if your charge controller can handle up to 150V, get flexible solar panels with a max output of 112V.
What Size Solar Panels Do I Need For My Home And How Many
The number of solar panels you will need depends primarily upon the amount of electricity you are trying to produce and the insolation in your area. Solar insolation can be thought of as the number of hours in the day that the solar panel will produce its rated output. This is not equivalent to the number of daylight hours. Check out our Solar Insolation Map for the USA.
Youll find solar panels in a variety of wattages. Watts are the main measure of a solar panel, along with nominal voltage. For a rough idea of how many watts of solar panels you will need for your home, start by dividing your electrical usage by the solar insolation in your area . Bump that number up by 30-50% , and youll have an idea of the number of Watts of solar panels total you will need. If that number is more than 1000 Watts, you are talking about $4K to $8K or more for the solar electric system. If you could still use a little help with the math, please give us a call at 877-878-4060 and tell us how much electricity you are trying to produce and your location, and well help get you started.
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How Much Roof Space Is Needed For Solar Panels
The average solar installation will require between 280 and 351 square feet of roof space. To find out how much roof space your solar system needs, just multiply the number of panels you need by 17.55 square feet, which is the area of most residential solar panels sold today.
If you have limited roof space, you may need to get high-efficiency panels, or panels with a higher power output so you can install fewer panels while still covering your energy needs.
Misleading Advertising There Are No Free Solar Panels
There is an old saying that, if it sounds too good to be true, it probably is. If you have ever clicked on an advertisement for Free Solar Panels, you may have already experienced this. You are immediately asked for your information, so someone can contact you and tell you more. Why is it so challenging to talk to someone to get a straight answer? Red Flag Alert! Trying to get a hold of a solar company shouldnt have to be gated behind a form. If you fill out an online form, you may start getting bombarded with phone calls and emails from every company in the world wanting to sell you solar panels. This is part of the latest solar company trend, Solar Lead Generation Companies. Learn about the different types of solar companies you will come across when shopping for solar.
Solar lead companies will say anything to capture your personal information and then sell it to actual solar installation companies. They can make false promises because they arent selling you anything and hope that the companies they sell the lead to can provide the correct information. To prevent being bombarded by calls and emails from random solar companies, dont click on advertisements with promises that are too good to be true.
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