Are Solar Panels Worth It?

[Griffin Malcolm]

Hey team, question on solar panels and their impact on resale value. Essentially, is it worth it? I had a consultation with a solar panel salesman today and he quoted me 29k for 18 panels, however the final price would be 13k after New York and Federal tax credits plus a holiday discount. At 13k, I would be paying about $100 each month for electricity. There would be no up-front cost either. They would fix my $100 for the next 18 months as a grace period so I have time to put the tax credit money "back in" the full cost of the panels. If after 18 months I don't do this, then the loan is re-amortized and the monthly payment would increase.

It seems like a good deal, and an easy selling point to a potential buyer - "hey, your energy bill will be $100 each month even in the winter, and then once you've paid off the panels you've got free energy!" but I'm just not sure about the tax credits. Like, I understand it comes off my taxable income, but it's also not like I'm getting a check for 14k that I can throw at the panels. I feel like it's more likely I would just have a lower taxable income, but still have to pay mostly the full 29k, which would make the monthly payment closer to $200. 

For context on the property - it's my house hack I've owned about 1.5 years now and plan is to sell in May of next year once I hit my 2-in-5 rights. I'm strictly concerned with ROI and how it looks to potential buyers. If anyone can provide some insight it would be appreciated. Thank you!

 

[James Hamling]

Ok @Griffin Malcolm, ready to "Nerd-Out"..... 

I was involved in R&D program with O.C. on "solving" a solar-on-the-roof solution that (a) worked and (b) was scalable. 

You might notice today, it's discontinued. Yup, there's a reason for that. 

Firstly, the real item is only a question of Point of Production. Because the grid is getting feed via solar, a person in many markets can get solar power, the question is via a privatized system or via the utility provider. 

Solar panels start diminishing in production from the first minute there installed. This is the science of how a solar panel works. It's shedding material from impact of sun's rays, that's how elec is produced. So, that is a key item to keep in mind when doing an analysis is what the slope is of diminishing production. 

Next is install impact. Does it improve the roof itself, or does it bring increased maintenance. It varies a lot depending on install method, regional area, heck even a specific properties weather exposure. 

Now the biggest impactor is often the least spoken on which is energy storage. Batteries wear out, that's just reality, and were talking batteries for a house, yeah, that's $. Personally, I am a big fan of the "alternative" storage systems such as water pumps, sand etc. because the battery method is honestly not all that efficient on a cost to operate measure. 

Often today the systems make no sense in a standard urban/ suburban deployment, they just don't, this is why we have solar farms going up instead of the old point of use focus. BUT for certain rural areas it's worth it's weight in gold because of the reliability factor vs an unreliable or expensive existing utility structure. 

In my opinion, the only one's who should ever consider or who it may be viable for in urban/ suburban settings is MFH. Where it can have a significant ROI in the immediacy, were talking 100% ROI in less than 5yrs.

For SFH, I find it makes more sense if it's a location where Starlink is also best internet option.