This is part of an ongoing essay detailing my experiences with solar energy. To see if solar is right for you, visit SunPower.
There are many options when it comes to solar systems, but generally you can buy or lease them. No matter the option you pick, the goal -- from a money perspective -- is usually to reduce the cost per kilowatt-hour (kWh) to something substantially less than what you're paying now.
When you purchase solar panels, you own them. That part is pretty simple.
The upside is that you're the legal entity generating the power, thus you also benefit from a variety of tax credits, grants, and other financial incentives. Since you own all the equipment, you also aren't relying on the vendor to stay afloat.
The downside is that you have to shell out the cash. Not a viable option for everyone.
When you lease the solar panels, the vendor owns them. It isn't too different from a car lease, where you pay a set cost per month for use of the car; instead of a car, you're agreeing to buy electricity from the vendor at a set price per kilowatt-hour for a period of 20-25 years. In some cases, vendors allow you to pre-pay for all the electricity the system is expected to produce over its lifetime.
The upside is that there's usually no cost to the homeowner for the system and installation. Zero down, basically.
The downside is that a lease requires a credit check. You also give up all the rights to the incentives. The vendors have to cover their costs somehow. If the vendor files for bankruptcy, no telling what will happen to your install.
The incentives surrounding solar energy are vast and vary from state to state (and county to county, even). After a little bit of research, I figured that I would qualify for the following programs:
In addition, I'm eligible to receive and sell a solar renewable energy credit (SREC) for every 1000 kilowatt-hours energy that I produce.
Note that incentive programs are always changing, so I recommend you check out the Database of State Incentives for Renewables & Efficiency (DSIRE) for the specific incentives applicable to your area.
Next: Picking a Vendor
Last Modified: 2020-08-09
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