Solar System… Worth It?

November 6, 2019

Exactly four years ago, we had a solar system installed.

Our system has 70 panels, all its wiring, connectors, invertors, and energy performance monitoring. Its cost was $73,890 and came with a very comprehensive warranty.

After reading this post, should you wish to pursue with a solar system installation, insist on the warranty. You will be sorry if you don’t.

We got back around $17,000 in tax credit.

A note on tax credits. They are nice if your federal tax liability is more than the credit. Otherwise, they are worthless.

It took weeks for the system to be installed! The contract was signed in September 2015. The system was finally up and running in November.

During the installation, it felt like a team of technicians, some quite large, moved in on our roof for weeks. After a 2016 spring storm, we found a few shingles around the house. We called a roofer. A team of technicians on our roof for weeks caused damages. It cost us about $5,000 in repairs. In my opinion, that amount should be added to the solar system’s total price.  

We are now at $78,890. Minus the $17,000 in federal tax credit, it brings us down to $61.890.

We financed the system. 12 years at 6.99% interest. I will not add the interests’ amounts to the cost of the system, even though I should. It would be too depressing.

These past four years, we placed multiple calls to the company that installed the system. Quite a few inverters had to be replaced. Reporting wasn’t working. Productivity was odd. As I am writing this post, we have a whole team of technicians finally changing all the invertors as well as the main control panel. I cringe thinking of the potential damage made to our roof once again. How much will it be to repair this time?

Before buying the system, I researched the internet as to what to expect in terms of recouping the costs. I believe now that most of the information out there is a bunch of sales pitches written by the solar industry itself. There is no way that any solar system pays for itself in eight years as this article says.

To date, our system produced 83,000kwh. We live in a state that has an average of 203 sunny days per year.

If I was to price a kwh a very generous 10 cents, 83,000kwh equals about $8,300. That amount is less than 15% of the system’s cost. At this rate, it will take about 30 years to recoup $61,890.

We are getting small credits for the solar energy our system produces, Solar Renewable Energy Credits, or CREC. The amounts paid quarterly to us vary tremendously. We had some quarters worth $15, some over $250. Never did we get close to the annual $1,500 selling SRECs advertised here. The grand total we got, from November 2015 to November 2019, is $1,117. It helps a little. Far from enough.

To debunk further the annual $1,500, this is an offer we received last month:
For context, we recently issued Quarterly Payments in August for $38.99/SREC to Sol Brokerage customers. This 3-year offer is an opportunity to lock in at an even higher rate—$55/SREC—without any price risk for the 3-year contract term. At the end of the 3-year contract, you will be able to switch back to Sol Brokerage or opt for another Sol Annuity. To request this special rate contract, click the “Review Sol Annuity Offer” link below.

Today, while our roof is stomped on all over again, I am asking myself…

Economically speaking, was that solar system such a good idea? Did it save us money? Will we eventually get free electricity?

Is that solar system worth the trouble of having technicians all over our roof on a regular basis, weakening our shingles if not the whole structure?

If we had to redo it, would we install a solar system on our roof again?

The simple answer to all these questions is No.

Do I feel stupid for having one? Well… no. I can honestly say that after doing a lot of research, it looked good on paper. In practice, it is disappointing. I got fooled. Shame on them. I don’t feel stupid. I feel duped.

Would I buy a house with a solar system already on? Of course. Even a little saving is nice.

At the end of the day, maybe that system will end up being a wash. If it lasts long enough. We may get back most of what it cost us. Maybe. If we get more sunny days.

And if not, my heart, if not my wallet, can somewhat justify the cost as the system generates clean and renewable energy. Our little contribution to our planet.

But I wish now that my contribution to Earth would have been buying high end very energy efficient appliances and more insulation in my attic instead.

And I wish that more solar homeowners had come forward with their own experiences. If I had the opportunity to read about the real pros and cons of owning a solar system, I may have placed my money somewhere else. Or not.

Katrin L.


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