Solar Energy - Today's Appointment

[kannon]

Morning -

A retiree at our monthly lunch told us about a solar energy company that they signed a contract for that sounded interesting. No money down, reduced electric monthly bill, 20 year fixed electricity bill (I don't know if that is supply and distribution or both), free maintenance.

So we made an appointment and they will be over this afternoon.

Question -

Has anyone signed up for solar energy? Thoughts? Good financial move?

What questions should I focus on during the appointment? Things like who maintains panels, who maintains roof, what happens when roof gets replaced, fixed electric bill??,...

Appreciate your thoughts

Kannon

 

[OldShooter]

... What questions should I focus on during the appointment? ...

Critical: Make sure you will not become an unsecured creditor.


Also, be sure to pull a D&B report on the company before going to the meeting. https://businesscredit.dnb.com/product/business-information-report/

 

[kannon]

what do you mean 'unsecured creditor"? My hope was to have a no cash out of pocket contract, like our retiree friend. I am assuming the company gets all of the credits and incentives plus they take out any needed loan and pay it off thru profits made by selling electricity back to the grid. Is there a loan danger lurking that I am missing?

thank you!

 

[Ready]

I spoke with at least ten companies a few years ago about solar. Most never bothered to follow up with me or made appointments and never showed. I have a house that would be challenging to install solar panels on so I suspect they just decided it wasn't worth the effort but it left me feeling like the industry is a bit flaky.

We do have a lot of neighbors who have purchased panels and been happy with the results. Just make sure you go with a reputable company if you move forward. Ask how many similar installations they have performed and check references before moving forward.

 

[ERD50]

I spoke with at least ten companies a few years ago about solar. Most never bothered to follow up with me or made appointments and never showed. I have a house that would be challenging to install solar panels on so I suspect they just decided it wasn't worth the effort but it left me feeling like the industry is a bit flaky.

We do have a lot of neighbors who have purchased panels and been happy with the results. Just make sure you go with a reputable company if you move forward. Ask how many similar installations they have performed and check references before moving forward.

Look into "community solar" - it makes so much more sense anyhow. Essentially, you buy into a portion of a solar 'farm'. One large installation takes advantage of economies of scale, and they won't be dealing with any of the challenges of the roof slope, gutters, or shading - there's plenty of open commercial or municipal (schools. libraries, etc) rooftops, or ground areas to install solar on.

And it's far safer. Look up at BLS, installing solar on residential rooftops is dangerous, a high level of injuries and deaths, relative to the amount of power generated (worse than coal, IIRC). But on an industrial scale, the installers are at one place for weeks, it's a flat roof (or on the ground). None of the challenges of a residential roof.

-ERD50

 

[Chuckanut]

If you sign an on-going contract that may be a problem when you go to sell the house and the new owners don't qualify to take over the contract.

 

[OldShooter]

what do you mean 'unsecured creditor"? My hope was to have a no cash out of pocket contract, like our retiree friend. I am assuming the company gets all of the credits and incentives plus they take out any needed loan and pay it off thru profits made by selling electricity back to the grid. Is there a loan danger lurking that I am missing?

thank you!

Well, I am not hampered by any knowledge of the actual deal, but IMO you could become an unsecured creditor if, for example, they don't pay subcontractor and the subcontractor files a lien on your house. Beyond that IANAL but I would suggest that you do have a real lawyer look at the deal, assuming that the company will go bust. Could a creditor of the company come and tear the panels off your roof or do you own them free and clear?

Even paranoids have enemies.

 

[Another Reader]

This sounds like a deal where they are leasing your rooftop and paying for the lease with a reduced cost of electricity to you. I personally would not want a company leasing any part of my property. Too many things can go wrong.

 

[kgtest]

I'm surrounded by oaks in the woods. Spend lots of time with a chainsaw, but the sun has a hard time penetrating so I inherently use less energy with the protection. I wish I could offshore the solar under the railroad into an open swamp 30 feet off my line, then I could build a solar farm and charge my neighbors.
Energy bills consistently come in +10% more efficient than the neighborhood's comparable. Or so the bill says, could be a marketing ploy to consume more.

 

[skipro33]

I'm on board with those who don't want anything muddying up the waters if I ever wanted to sell my house and not owning the hardware of solar on my roof will do.

I purchased my solar using one of those checks credit card companies send you that can be used for home improvements. 18 months zero interest. At the end of 18 months, I used the check from another credit card for another 12 months. Just recently did it one more time. First two did not have a 'fee' of 3% as most do. Last one did. In the meantime, my money, the $16,000 the system cost us, was working away in my IRA. I got all the tax credits due upon installation, basically zero electric bills for 3 years now and about 25% growth on the money growing in the IRA. I'm pretty sure I'll pay it off next year with my SS checks I'll start receiving after applying at age 62.

 

[RobbieB]

I did the solar thing almost 3 years ago. I paid for the system with cash, collected the tax credit and my electric bill went from $1500/yr to $200/yr.

I would not have done a lease.

 

[jazz4cash]

Ask if there is an escalation clause in the contract. The one we reviewed was “fixed” but that included a built in rate increase every year. The salesman appeared to be unaware of this clause when I pointed it out.

 

[nash031]

Sounds like a lease. Leased solar can be an issue during sale of your home. Owned solar is the way to go, IMO. You pay money up front, but depending on your bill and your area, you can repay it in 5-7 years.

 

[jeffrow]

Nah, not a lease. Sounds like a power purchase agreement. You are basically agreeing to purchase the total output of the system at “X” amount per kw hour. Usually a escalation clause is built in. As cheap as solar has gotten might want to look at a straight purchase, break even 5-7 years around here.

 

[Another Reader]

Nah, not a lease. Sounds like a power purchase agreement. You are basically agreeing to purchase the total output of the system at “X” amount per kw hour. Usually a escalation clause is built in. As cheap as solar has gotten might want to look at a straight purchase, break even 5-7 years around here.

I think you are right. And I do not want any rights in my property conveyed to anyone else, especially what could be construed as a leasehold interest. If the company goes under, who knows what might happen with the panels and your right to purchase the power generated by them?

 

[Chris7]

We buy our electricity from the Solar company at a reduced rate. Savings have been about 40%. But it is a 20-year contract. They have to keep up on the maintenance. Contract does have a limit that they can raise ever year.


If we do sell our house and the new owner didn't want to assume it, we could move it, but it would cost us to do so. We originally planned on being in the house for a while so did it. For now, still staying put. We have had solar for almost 3-years now.

 

[Offgrid Organic Farmer]

Morning -

A retiree at our monthly lunch told us about a solar energy company that they signed a contract for that sounded interesting. No money down, reduced electric monthly bill, 20 year fixed electricity bill (I don't know if that is supply and distribution or both), free maintenance.

So we made an appointment and they will be over this afternoon.

Question -

Has anyone signed up for solar energy? Thoughts? Good financial move?

What questions should I focus on during the appointment? Things like who maintains panels, who maintains roof, what happens when roof gets replaced, fixed electric bill??,...

Appreciate your thoughts

Kannon

5 or 6 years ago there was a company in our town going around trying to sell those contracts. We have a friend who signed such a contract.

We decided to go with off-grid solar power instead. In this town the power grid goes down frequently. Any home that is net-metering grid-tied loses power every time the power grid is down.

In this town 75% of solar-powered homes are off-grid.