SOL MAN SOLAR

All panels lose capacity to make energy over time.  This is one reason that I recommend installing a system that meets at least 105% of your electricity demand. Real world data suggests that your panels will produce more than 90% of their original capacity after 25 years. Remember, they are engineered and warrantied to endure the Florida elements 24/7/365 for at least 9,125 days.  

You'll still save big money in spite of this penalty.  Utilities are allowed to charge a minimum fee to customers that don't buy enough electricity in a month. This is in addition to the "customer charge" that all households pay to be connected to the energy grid.  Expect less than $25/month. Also, if you use more electricity than your net metering credits cover, you'll need to buy additional energy from the utility. 

Another hurdle, courtesy of your utility.   Your savings with solar will still be worth it.  Homeowners with systems rated at more than 11.7 kW DC will need to carry a Personal Liability Policy of at least $1 million.  Expect to pay an insurer $169-$210 per year. Also, don't forget to check with your home insurance provider to see if your policy premiums will increase when you go solar.

 To lower monthly payments, lenders expect you to give your tax credit to them within 2 years of funding. If you keep it, the monthly payment is raised. The ITC is due in full if you sell your home before the loan balance is paid off, and the loan is transferred to the buyer. If the loan is not transferred at home sale, you owe the balance of the loan principal. Lenders also add large fees to the cost of the system. All of this is in addition to the interest that you pay over time.    

 Solar systems last 25+ years. Odds are your roof will need replacing at least once. The panels will need to come down and be put back up. This means paying for new mounts and wiring along with technician labor. Figure $250 per panel in 2022. Like most things in life, this fee may cost more many years from now when you're in need of a new roof. Aside from loan interest, this is probably your biggest potential eventual expense after the initial equipment installation.

  Duration. Documentation. Obligation.    

Warranties vary from company to company.  Understand what is and is not covered by either the manufacturer of the parts or the installer.  Who pays for service, system monitoring, parts shipping, technician labor/travel time, repair of damage to roof or interior of home due to poor workmanship, and panel removal & replacement as needed? How long are you covered?  Where does it say this in writing?  

  This one is a real slap in the face.  The salesperson asks you what's your highest utility bill, then what you think is your average monthly bill. Your tendency will be to guess high, like $330, so they then use that number in conversation, when in fact they know it's actually $290. They lock in your new electricity rate at $230/month, and you're excited because you think you're saving $100/month, when it's actually only $60. They won't correct you, so know how much electricity you use annually by adding up 12 calendar months in a row or make them do it in front of you.

  Say what? Most people finance their solar system. Remember, behind your monthly loan payment is a structure that determines what portion goes to pay down principal and interest. Like your home mortgage, you pay the most interest initially, and most of the principal towards the end. Higher rates mean paying more towards the interest vs. the principal. Rates over 2.75% for 25 yrs. means that, initially, more than 50% of each payment goes towards interest. So, at 2.8% interest rate, if your loan payment is $100 less each month than you paid to the utility, over $40 each month is paying off interest on average for the first decade. This means your true average savings, that pays down your loan balance, is actually closer to $60/month for the first 10 years.  

  This one is very important. One main driver of your solar savings is the Utility Annual Increase. The more they raise rates, the more you save. But sales guys will often ask you how much you think your bill goes up each year on average, and if you guess too high, that magically becomes the number they use to overestimate your savings. Solar people are in the energy business, they should have a better idea than you how much your utility actually raises rates on average. Since nobody has a crystal ball to see the future, we often use past data to make future assumptions. The longer the time frame here the better, so you get a good picture of rate increases over a decade or more.