What’s your views on getting Solar Panels?

Member since 2022 · 21 posts · 19 votes

I was recently looking into getting solar panels on my home and after doing some more research I am now on the fence. I dont have a very high monthly electricity bill. It’s about $100avg. 2400sqft home.
One of the main reasons I was interested in Solar was because of the added equity to my home. You get about 3-5% gained value from adding solar. However after running the cost it would be a 25yr loan of $33,000 at 5.99% and the monthly payment would be $150.
So Solar is actually costing me more monthly than if I stayed with electric.
Now with the rising cost in electricity over the coming years, I wonder if this is a good investment for myself and my home.
I’m 50/50 right now and wondering what some other people’s thoughts are on the whole solar panel fad that’s hitting the country.

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Carlos Valencia

Lender · 92703 · Member since 2022 · 326 posts · 538 votes

Hi Jarret based on your current situation I would advise not going solar as your bill is pretty low. It really depends what area you live in and how much you expect to use. For example in my area we have Edison and it can get pretty pricey and rates keep rising. Edison also adds more restrictions on your usage when you can run your AC in the summer. In southern California the majority of the homes would benefit from solar due to all the restrictions and high utility bills. Plus we get a lot of sun. Make sure you dont have any major shade that comes over your house otherwise it will affect how much power they generate. For someone that pay $500 per month on electricity especially in the summer its definitely will save them money going solar and you also get a 30% solar tax credit. Last thing I would suggest is if you decide to go solar I recommend paying cash to save money on all the loan fees. Sometimes its half the cost. Ask for a cash solar quote so you can see how much money you will save. If you want another quote I can refer you to someone to give you more details.

@Albert Bui @Matthew Kwan

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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
Most solar adds little if any value and can actual reduce the value of your home if you have a lease or a loan on it and try to sell.
Every market is different but check your areas electrical rate history. I don’t think my power bill is up 20% in 20 years. It’s amazingly cheap and stable. The solar people said 40 yewrs ago it would pay for itself in 15 years. Now they’ve spent those 40 years saying it’s 90% cheaper and 90% more efficient and yet the break even is still 10-15 years. If your roof lasts that long. But nobody thinks that breaking even is bad, and breaking even in 15 years is horrible. Give me a million dollars, I’ll give it back to you 15 years and you’ll be even.

When I did look in to it most quotes were for around 200 months of my average electricity bill. Hard to make that math pencil out.
Ps. You can type solar in the magnifying glass in the top corner and find enough threads to waste a day or two on.
1 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Jarrett Fogelman
Solar is only worth it if your area has ridiculous SREC credits so system pays for itself in several years, for example Washington DC has high electric bills and great credits so the payback is 3-5 years. Move few miles west to Virginia and electric is much cheaper and credits suck so payback is 17 years.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Every desperate seller i've come across in the last month has had solar. Don't do it, no one will pay to have it when you sell your property.
1 Reply
Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
First thing Id check is if they raise the value, devalue, or have no impact on your properties value in your market.
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Nik Moushon
Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
3y
There are only three instances where it makes sense to buy solar panels for your house.

1 - You are living off grid.
2 - You live in a state that has sky high electric costs AND great tax insensitive.
3 - You have lots of money, don't care if you are paying more, and want to feel like you are saving the planet (even though you really are not).

If you can't pay cash for the panels and the system (most people don't realize you need more than just the panels) it is rarely worth getting them because, as you found out, the loan amount costs are just too high. The pay back period either ballons or goes away completely.

You also have to do A LOT of research on your VERY specific location. Like your exact location on where you are installing them. Doing sun studies to see what will cast shadows on the panels and what the true average of sunny days is for your location. Panels can make a lot of sense in the sunny southwest US but in New England...its just a complete waste of money. Its not just about the sunny days either. I live with 300+ days of sun but my electric rates are one of the lowest in the country...no way I could ever get a pay back. Maybe in the future if panels get a huge efficiency boost.

One last thing I forgot to mention. Same staets, like mine, have an Energy Code where you are required to get a certain amount points of point for new builds. There could be a case made that its cheaper to do EV panels than having to do a bunch of other requirements on the list. So, MAYBE, on new builds its worth considering, especially when you scale above a SFR. But even then, 99% of new SFR in WA state dont have EV panels.

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Matthew Kwan
Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
3y
@Carlos Valencia is a specialist in solar panel! Try reaching out to him!

@Albert Bui
1 Reply
Caroline Gerardo
Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
3y
Solar adds zero equity. Solar can be a liability depending on how you finance. Solar does not last very long- the panels are glass so imagine if you have high winds, hail, intense weather.
How much light does the location recieve- solar index for weather, then tree cover, and roof facing south...
Your bill seems too low to be worth the cost.
1 Reply
Carlos Valencia
Lender · 92703 · Member since 2022 · 326 posts · 538 votes
3y
Hi Jarret based on your current situation I would advise not going solar as your bill is pretty low. It really depends what area you live in and how much you expect to use. For example in my area we have Edison and it can get pretty pricey and rates keep rising. Edison also adds more restrictions on your usage when you can run your AC in the summer. In southern California the majority of the homes would benefit from solar due to all the restrictions and high utility bills. Plus we get a lot of sun. Make sure you dont have any major shade that comes over your house otherwise it will affect how much power they generate. For someone that pay $500 per month on electricity especially in the summer its definitely will save them money going solar and you also get a 30% solar tax credit. Last thing I would suggest is if you decide to go solar I recommend paying cash to save money on all the loan fees. Sometimes its half the cost. Ask for a cash solar quote so you can see how much money you will save. If you want another quote I can refer you to someone to give you more details.

@Albert Bui @Matthew Kwan

4 Reply
Julie Hartman
Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
3y
The other thing to consider is the frequency with which you need to re-roof. A place that gets a lot of hail and therefore gets new roofs often, solar would not make economic sense. Some roofing companies will include removal/replacement of panels after the shingles are replaced and some won't touch it. SOME insurance companies will roll that cost into the new roof and some won't. Our preferred roofer told me that moving the panels and putting them back up can cost anywhere from 5-7k. Most people don't consider that *small* detail when thinking about going solar.
3 Reply
Jossalyn Wallace
Real Estate Agent · Destin, FL · Member since 2019 · 116 posts · 111 votes
3y
In my experience solar eventually becomes a burden. A lot of my clients have gotten stuck with major loan payoffs if they decide to sell their homes as they really don't add any equity here and most buyers don't want to take on the additional loan, some have had their home owners insurance drop them, and like you, they ended up costing more then just paying your electric bill.
1 Reply
Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
As mentioned above depends on your objective.
If purely financial in nature.
Would evaluate your electric usage first.
1. Led lights
2. Fans
3. More insulation in the roof. Make sure your soffets on your attic roof overhang aren’t covered.
4. Have free energy audit done by your electric company
5. Install a Solar water heater. Or buy a new water heater.
6. Plant a windbreak or shade tree.
7. Install attic vents or fans.
8. Get a drying rack. Get rid of the dishwasher.
9. When it is time replace your central heating and cooling system with split units.
10. Redo your window and door caulking Glaze your windows and get heavy curtains for winter and summer.

11. Then look at Solar after you have done the above.
12. As mentioned above. If you do an EV then you probably would do the solar. Numbers will work “better”. But then you’re probably not worried about the numbers. The windbreak and shade trees should take care of your carbon sequestration to meet those types of concerns.

1 Reply
Nathan Harden
Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
3y
You will not see the return back out of it. The only way that I see it paying off is if you hold onto the property for YEARS, then maybe you will start to see your ROI but until then, it's just an extra burden that you would have to worry about.
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
3y
Great insight already mentioned here. I agree solar adds next to nothing for value on a property. Some energy companies won't even pay you to put energy back on the grid. It's called net metering.

"In 2017 Indiana lawmakers passed SEA 309. (See below for more information about SEA 309) Because of this bill, net metering is no longer available for new solar owners served by Indiana’s largest electric utilities."

Every state is different. Utility companies lobby against because it hurts there bottom line. Indiana sucks in this regard.

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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
3y
Hey @Jarrett Fogelman - I personally advise against adding solar panels to your home if you're going into it with the mindset that you'll regain the $$ when you sell. I'm not sure which market you're in, but the clients I've worked with that have existing loans/leases on their solar panels have a headache when it comes time to close.
Especially given your electric bill is much lower than the payment on the solar panels - it just doesn't make sense to me.
0 Reply
Rosa Regier
Investor · Austin, TX · Member since 2015 · 73 posts · 54 votes
3y
We added 40 solar panels to our home in 2016. Our goal was to lower expenses esp going into retirement in an expensive area. We paid cash so no loan or refi issues. Yes, if you refi, you'll need to confirm whether or not you own your solar panel system. The benefits to us have been: fed tax credits, property tax exemption, lower electric bill by a whopping 85%. Our area is about to be hit with 2 rate increases which doesn't bother us too much but our neighbors aren't happy about it!
4 Reply
Jarrett Fogelman
OP
Member since 2022 · 21 posts · 19 votes
3y
Thank you all for your feedback. This has helped me make the decision that solar is not the right choice for my home! Much appreciated
1 Reply
January Johnson
Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes
3y
Quote from @Jarrett Fogelman:

I was recently looking into getting solar panels on my home and after doing some more research I am now on the fence. I dont have a very high monthly electricity bill. It’s about $100avg. 2400sqft home.
One of the main reasons I was interested in Solar was because of the added equity to my home. You get about 3-5% gained value from adding solar. However after running the cost it would be a 25yr loan of $33,000 at 5.99% and the monthly payment would be $150.
So Solar is actually costing me more monthly than if I stayed with electric.
Now with the rising cost in electricity over the coming years, I wonder if this is a good investment for myself and my home.
I’m 50/50 right now and wondering what some other people’s thoughts are on the whole solar panel fad that’s hitting the country.
I have solar on my home, and if I knew then what I know now, I would not do it. It might be good for me in 2, 5, or 10 years, but it's not a value add. It's a "second lien" add.
0 Reply
Marcus R.
Real Estate Agent · Denver CO · Member since 2019 · 210 posts · 333 votes
3y
Hey @Jarrett Fogelman - Great question and it sounds like you may have already come to a decision, but like others have mentioned do your own research. It's like trying to answer "How many calories should I eat?".
It's a highly individualized decision and may make sense for you, your property, your values, neighborhood fit, tax situation, etc...I had to evaluate all the above and more and it made sense for me to add them to a property (in the process of).
2 Reply
Nicholas Valente
Contractor · Hopedale, MA · Member since 2020 · 31 posts · 29 votes
3y
@Jarrett Fogelman
From someone who works directly with solar companies and designs/installs mechanical systems. Couple factors that come into play. What zone do you live in. Age of the home. Geo position of home and current fuel source. What we do for our customers is we weatherize their home first. Then we do a manual J (heat load calc) which will bring you to your manual S (size/system selection) and finally a manual D (duct design). Once all of these are properly done we then size the solar system to fit the total demand of the home. We install the system correctly the first time and completely seal any and all leakage. In certain situations we have been able to eliminate the customers heating/cooling and electric bill for 9-10 of the 12 months. All this comes with a price tag. You have to pay for good equipment and you have to pay for great craftsmanship. 99% of investors value neither
1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Jarrett Fogelman:

I was recently looking into getting solar panels on my home and after doing some more research I am now on the fence. I dont have a very high monthly electricity bill. It’s about $100avg. 2400sqft home.
One of the main reasons I was interested in Solar was because of the added equity to my home. You get about 3-5% gained value from adding solar. However after running the cost it would be a 25yr loan of $33,000 at 5.99% and the monthly payment would be $150.
So Solar is actually costing me more monthly than if I stayed with electric.
Now with the rising cost in electricity over the coming years, I wonder if this is a good investment for myself and my home.
I’m 50/50 right now and wondering what some other people’s thoughts are on the whole solar panel fad that’s hitting the country.

just want to share my view that the solar is very famous around the "overpaid engineers community" and "Tesla/Elon Musk" followes.

but for the rest of guys maybe ...... "meeeehhhh", it is one of those thing that seems cool to have but it is not really "needed".
0 Reply
Malek Bohsali
Developer · Houston · Member since 2019 · 49 posts · 9 votes
3y
Quote from @Julie Hartman:

The other thing to consider is the frequency with which you need to re-roof.
I don’t wonder that the solar panel installer and my roofer would argue over who’s at fault for a leaking roof. New roof, no leaks…. Add solar panels, they need to attach them to the frame by puncturing the roof. As an old civil engineer I’m not confident that all those penetrations through shingles and membrane would stay water tight.
plus as others have posted, added $$ and who’s responsible for removing and reinstalling for each reroof? I will not become wrapped around the axle on those issues.
Lastly price of power here is only 9-10 cents/KwHr
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Jeremy Horton
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
3y
You would literally have to pay me for me to put solar panels on my home
Such a scam at this point
0 Reply
Michael Evans
General Contractor · Palm Desert, CA · Member since 2016 · 197 posts · 79 votes
3y
Maybe it would be a better investment to put a windmill on your roof? Just saying...
1 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
3y
Quote from @Michael Evans:

Maybe it would be a better investment to put a windmill on your roof? Just saying...

You may be joking but there IS roof-top vertical windmill units that FAR out perform solar on every front.
Solar is "not there yet", it simply isn't.
A key problem with solar is the decay rate of the panels, it seems most people completely forget this. From the day it goes on, it's wearing out and decaying. They are like tires on an auto in this way, people think there forever but I assure you they wear out. And once worn out, wildly toxic to dispose of. And than you have that whole cost again.
Windmill, it's a lot cheaper, produces similarly, no decay rate like solar, generally longer lifespan than solar now. The one issue it has is another point people skim over with solar and that's energy storing. A batter bank is a whole other massive expense, and maintenance. You don't need it if your "selling" it into the grid, but now your cutting returns via introducing an energy broker to the mix.
You will know solar "works" when you see all the flat roof commercial buildings throwing them up left right and center. And as anyone can see, they are not. Ever think on that, why isn't this giant commercial building with this huge open football field of a roof simply throwing up solar? It's the easiest installation for it right, they have a massive draw, would benefit the most right. yeah, there is a reason they are not.
Solar is the greatest sales pitch in human history. It's managed to convince people that a DIRTIER more costly, toxic manner of producing electricity, is "eco-friendly". In THEORY solar is great, it's just that reality has not meet theory as of yet.
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Jay ThomasPro Member
Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
3y
Solar energy is becoming a more popular option for homeowners, but it can be a costly investment that won't pay off when you come to sell. Real estate buyers are often unwilling to foot the extra cost of solar panels and other associated installation costs, meaning that desperate sellers end up shouldering the burden. If you're considering upgrading your home with solar, think twice before making any commitments - it may not bring in the returns you're hoping for.
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