All Forum Posts by: John Gingrich

Hi Pavel - If you'd like to connect to discuss further, please feel free to reach out through the system here for a direct conversation.  Since I'm from MN and have several friends in real estate, I imagine we share some connections, which is great.

My quick reply is that your math is off all throughout, so happy to discuss or you can try objective sites like PV Watts to see how much electricity a solar system will produce in various locations given differences in solar insolation and weather.  In MN, a 1kW system (likely about 4 250 watt panels) would produce a little over 1,000 kWh per year, so about 80 kWh per month.  That's a conservative estimate.  Panels vary in size, but on average are about 16 sqft in size - 3+ x 5+, generally rectangular in shape.

Maintenance cost is negligible for solar.  Yes, my family has a system and we have paid zero for maintenance.  In the early spring, we often spray the hose on the panels to wash off some of the pollen, but I'm not 100% certain it is needed given rain and overnight dew + wind.  In some areas of the SW, more regular washing may be warranted due to more limited rain events.  The other maintenance is an inverter replacement that may be required 10-15 years after installation if a central inverter is used.  If micro-inverters are used, they are warranted for 25 years, typically.

Hope that is helpful!

@JT Spangler -

Sorry, not solid logic being offered here.  In TN, solar is not the best option, I'll give you that.  That is because electricity prices are so low, incentives are low and prices for solar are high due to lack of scale in installation.  My sense is that your logic is focused on environmental reasons, which is great.  But, for the average family with kids and a house to heat and cool, reducing your electric bill by 70% is not easy and may not be possible. If we assume that you cannot adjust your consumption by that month (I'm all for energy efficiency efforts first, by the way, as it often - not always - costs less to save a watt than to create a watt), the solar represents a solid option with quick payback and good asset value for property appreciation.  The key states where solar works best economically are noted in a recent SEIA article: http://www.seia.org/research-resources/solar-indus...

If you have an electricity bill below $50, solar is not right for you.  There are too many fixed costs that you have to incur for a small solar system and the economics at that size often do not work out.  If you want to see how much solar can save you, get a free instant estimate without having to give any personal contact info:  www.energysage.com

If you are not truly familiar with solar, i suggest you do not add posts that include misinformation.  There is a lot of bad info on this thread.  Here are the facts for solar in CA:

A homeowner with a $150 bill may require about a 6kW solar panel system, depending on their cost of electricity (varies by utility and tier).  This system will cost about $20k offsetting about 100% of their bill.  The federal government provides a 30% tax credit, so the homeowner gets about $6k back at tax time (not a deduction, an actual credit).  So the net cost is $14k.  At $150 per month, that may seem like a small number, but that is $1,800 per year and electricity rates increase about 4% annually in CA.  Over 20 years, that amounts to about $54k!  With solar, the upfront $14k is paid back by year 7 and then the homeowner enjoys free electricity for the next 20+ years.  To to recap, a 7 year payback is roughly a 14% return on the invested capital.  That is a tax free return because it is simply cost savings so you don't pay taxes on it.  In addition, your property value goes up by about 3% or about $15k on average throughout the US due to the ownership of an energy producing asset.

There are several comments about solar being a bad investment.  It is an amazing investment and if you can beat a 14% unlevered (even better if you borrow some of the money), tax-free return, then you are investing in a different market than I am.  Frankly, if you have a solar suitable roof and are not considering solar, you're behind in the times my friend.  Solar makes economic sense, which is why most of the Fortune 500 companies have invested in solar.  Solar is cool, solar is sexy, solar gives you independence and enhances both the resale value of your home and cuts the time it takes to sell a home.  Here are some references your can review to see how independent studies have supported this concept. https://www.energysage.com/solar/why-go-solar/incr....

Far better investment than granite countertops!  Want more info, just ask!  John