SOLAR PANELS on a house

[AI-TRAVEL]

Buying an new home in Lakewood and thinking about solar panels. Solar company said it will cost 27k for 10 kilowatts. I get an immediate $8100 tax credit, for total cost of $18,900. I will also get roughly 12 SRECs a year which can be sold for roughly $210 each (price goes down each year though). Should also save more than $2000 in electric costs annually. Seems like a very good deal. Is there anything else I should be thinking about?

If you don't mind me asking how many sq feet is your house? What are SRECs and who are you selling them to?
 Regarding your question, any upkeep needed by you? Does it ruin your roof? How ugly it looks? Those come to mind.

[aygart]

Buying an new home in Lakewood and thinking about solar panels. Solar company said it will cost 27k for 10 kilowatts. I get an immediate $8100 tax credit, for total cost of $18,900. I will also get roughly 12 SRECs a year which can be sold for roughly $210 each (price goes down each year though). Should also save more than $2000 in electric costs annually. Seems like a very good deal. Is there anything else I should be thinking about?

I have heard mixed reviews from people who have it. Go through it with someone besides the salesman.

[michael]

Its a 3k sf house. SRECs are state credits, sold on an exchange. Supposedly no upkeep. Please elaborate on what the mixed reviews were. What are expected issues?

[henche]

Its a 3k sf house. SRECs are state credits, sold on an exchange. Supposedly no upkeep. Please elaborate on what the mixed reviews were. What are expected issues?

Keep in mind there are probably federal taxes on the sale of the SRECs.  See SWF Real Estate, LLC v. Comm’r, T.C. Memo 2015-63.

[Saver2000]

What are SRECs and who are you selling them to?

The energy companies are required to produce/provide a certain amount clean energy every year. They dont have the euipement to do that. So instead, the state gave them  the option to "buy/pay" someone else who is producing clean energy.

The clean energy produced is sold as "SREC credits". There is a whole market place place for them (e.g. brokers, etc).

For some reason the price has been dropping every year.

Does it ruin your roof?

I'm not in the roofing business, but shouldn't it make your roof/shingles last longer since they are covered and protected?

[henche]

The energy companies are required to produce/provide a certain amount clean energy every year. They dont have the euipement to do that. So instead, the state gave them  the option to "buy/pay" someone else who is producing clean energy.

The clean energy produced is sold as "SREC credits". There is a whole market place place for them (e.g. brokers, etc).

For some reason the price has been dropping every year.

I'm not in the roofing business, but shouldn't it make your roof/shingles last longer since they are covered and protected?

Oh, I was figuring it was some sort of tax credit.  My post above assumed that. But I imagine it is still taxable income.

[Am]

Find out if it voids the warranty on the roof

[michael]

Oh, I was figuring it was some sort of tax credit.  My post above assumed that. But I imagine it is still taxable income.

There's quite a bit of discussion regarding taxability. Not clear at all.

An advantage of solar is that the gains, at least in the form of reduced electricity bills, are not subject to tax. If you are in a high bracket, that can be a significant advantage.

[yos9694]

For some obvious reason the price has been dropping every year.

IFYP. Supply and demand, as more and more systems come online

[Medic97]

Did anyone see the announcement of Tesla energy. I wonder how it will work with solar panels and if it will bring the total cost of installation down.

[Shmulie]

Did anyone see the announcement of Tesla energy. I wonder how it will work with solar panels and if it will bring the total cost of installation down.

Yeah I might need to update my avatar 

I doubt it will bring the cost of installation down but as the technology gets better you should be able to store the power from the day to use at night daily but right now I think its really meant to be used as a backup

[Medic97]

They have 2 models one is for daily use at night and recharge during day. It only cost $3k for 7kw daily.

[Shmulie]

They have 2 models one is for daily use at night and recharge during day. It only cost $3k for 7kw daily.

there are a lot of articles saying that it wont actually work like that for now
I doubt the battery can really cycle everyday and still work well after a year

ex:
http://www.bloomberg.com/news/articles/2015-05-06/tesla-s-new-battery-doesn-t-work-that-well-with-solar

[yos9694]

Did anyone see the announcement of Tesla energy. I wonder how it will work with solar panels and if it will bring the total cost of installation down.

How could it possibly bring the cost down when it is an additional component to the system? You need to first have a full solar system before the product is of any use at all. All the battery storage does is provide homes that have solar panels with a way to NOT sell their generated solar power back to the utility company, so that they can use it themselves later (and avoid buying utility power). If there is a big disparity in the buy/sell prices then the system could be cost effective, but it would take a long time just to save enough to "pay for itself".

A potential use for those who DON'T have solar (and I don't know if it would be possible, but seems like it should be) would be to program the system to draw power from the utility at night and store it for use during the day. Then you could sign up for a rate plan that gives you a lower rate for power purchased during off-peak hours and generate some savings that way.

[Medic97]

How could it possibly bring the cost down when it is an additional component to the system? You need to first have a full solar system before the product is of any use at all. All the battery storage does is provide homes that have solar panels with a way to NOT sell their generated solar power back to the utility company, so that they can use it themselves later (and avoid buying utility power). If there is a big disparity in the buy/sell prices then the system could be cost effective, but it would take a long time just to save enough to "pay for itself".

A potential use for those who DON'T have solar (and I don't know if it would be possible, but seems like it should be) would be to program the system to draw power from the utility at night and store it for use during the day. Then you could sign up for a rate plan that gives you a lower rate for power purchased during off-peak hours and generate some savings that way.

That is an interesting Idea, especially if you live in a place with reduced billing at night.
Regarding solar I would assume (I have not done much research into any of this... Yet) there are many reasons why you wouldnt want a backup battery in the mix. While still selling some excess to the utilities. Especially if you live in places like FL with frequent power outages. Your solar panels dont help you at night last time I checked.

[yos9694]

Your solar panels dont help you at night last time I checked.

No need to keep checking 

[Medic97]

No need to keep checking 

Lol, figure of speech of course.

[grodnoking]

How could it possibly bring the cost down when it is an additional component to the system? You need to first have a full solar system before the product is of any use at all. All the battery storage does is provide homes that have solar panels with a way to NOT sell their generated solar power back to the utility company, so that they can use it themselves later (and avoid buying utility power). If there is a big disparity in the buy/sell prices then the system could be cost effective, but it would take a long time just to save enough to "pay for itself".

A potential use for those who DON'T have solar (and I don't know if it would be possible, but seems like it should be) would be to program the system to draw power from the utility at night and store it for use during the day. Then you could sign up for a rate plan that gives you a lower rate for power purchased during off-peak hours and generate some savings that way.

During a power outage you cannot use your solar panels to energize your house because they are afraid of the extra energy going back into the lines  electrocuting thr workers fixing lines. With the battery it'll be easyer to go completely of line

[grodnoking]

Btw if you are going to do solar panels have a friend who has the company you want to sign you up because most companies have a huge bonus fo ppl who get others to get solar from them

[henche]

During a power outage you cannot use your solar panels to energize your house because they are afraid of the extra energy going back into the lines  electrocuting thr workers fixing lines. With the battery it'll be easyer to go completely of line

Exactly how does that work?  Do they send a worker to your house to turn off your power?