CashBuying your solar electric system outright is best. It usually costs $15,000 to $20,000 after tax credits and can reduce your electricity bill by 70 to 100 percent, depending on the size and orientation of your roof and local regulations. Most systems pay for themselves in five to seven years. Contact online >>
CashBuying your solar electric system outright is best. It usually costs $15,000 to $20,000 after tax credits and can reduce your electricity bill by 70 to 100 percent, depending on the size and orientation of your roof and local regulations. Most systems pay for themselves in five to seven years.
Home Equity LoanIf you need to finance your solar panel purchase, the most cost-effective way to do it is to use a home equity loan or a home equity line of credit. Because your house serves as collateral, these options have low interest rates (currently about 3 to 5 percent). The interest you pay is tax deductible. Equity loans range from 5 to 20 years and usually have fixed interest rates. Equity lines last 10 years and have variable rates (so the interest may increase).
Solar LoanThere are unsecured and secured solar loans. With an unsecured loan, your house doesn''t act as collateral and the interest isn''t tax deductible. Many solar installers work with lenders that offer solar loans, but you''ll probably find better rates by directly checking with banks, and credit unions. Watch out for high origination fees. Fannie Mae also offers consumers financing for solar system installations through its HomeStyle Energy Mortgage Program when they buy a new house or refinance.
Your Savings Will Be ModestPeople who lease their solar systems save far less than those who buy them outright or with a loan (they also miss out on federal tax benefits and any local incentives). Many leases contain an escalator clause that can further reduce savings by increasing payments 3 percent per year. So if you''re paying 12 cents per kilowatt-hour in year one, with a 3 percent escalator, you''ll be paying 18.2 cents in year 15. That means that if the cost of energy doesn''t rise as quickly as the contracted lease payments increase, your savings could evaporate.
You Lose Control of Your RoofLeasing companies want to maximize their profit, so there''s a chance you could wind up with more panels than you want and that they could be installed in highly visible places—such as facing the street—without any regard to appearance. To avoid that, check the final system design and placement before signing the lease. It could be different from the initial mock-up.
That''s what happened to Andrew and Nora Barber, who had to buy out the lease on the solar system on their Clovis, Calif., home after two prospective buyers were frightened away by it. "I offered the solar company $16,000, which was the total of all the payments for the remainder of the contract," Andrew says. "But $21,000 was the buyout price in the contract, and the company wouldn''t budge."
Some solar leasing companies may offer to relocate their systems from one house to another. That could cost $500 for an initial audit and another $500 to transfer the panels, if the leasing company determines it can be done. You would also need approval from your utility and local landmarks commission or the condo or homeowner''s association, if applicable. Plus the new house must be able to accommodate the old system.
Service Plans Don''t Serve YouThough leasing companies tout their service plans, maintenance is a red herring. "Generally, there''s really no scenario where the maintenance plan is going to kick in," says Joshua Pearce, an engineering professor and solar expert at the Michigan Tech Open Sustainability Technology Lab. Equipment problems aren''t covered by the maintenance plan, they''re covered by the warranty. And if a storm destroys your panels, the damage may be covered by your homeowners insurance.
That''s why—whether you buy or lease—it''s essential that you inform your insurer. (Roof-mounted solar is generally added as part of a standard homeowners policy at no additional cost; ground-mounted solar may require an insurance rider.)
About Solar panel reviews consumer reports
As the photovoltaic (PV) industry continues to evolve, advancements in Solar panel reviews consumer reports have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Solar panel reviews consumer reports for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Solar panel reviews consumer reports featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
