Yet another solar panel bid

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jibantik
Posts: 136
Joined: Fri Nov 24, 2017 1:05 pm

Yet another solar panel bid

Post by jibantik » Fri Mar 08, 2019 7:23 pm

I was wondering about Bogleheads opinion on a solar panel bid.

I had a bid that came to around $2.8/watt on a 7kw system. So, total price is around $19,600 before the federal rebate.

With the 30% federal rebate, this comes to $13,700, or $1.95/watt.

Also, there are the following warranties:
* 25 year linear power warranty on Solar Panels
* 25 year warranty on SolarEdge Inverter and Power Optimizers
* 15 year warranty on Labor and Workmanship
* Lifetime warranty on against roof leaks because of solar installation.

Apparently, this system can save around $100/month of electric. So, the payoff would be around 10 years. I expected it to pay off a little sooner, but as I have done some reading around here and other sites and this may be a pretty decent deal?

Also, apparently, the federal rebate will decrease in amount over the next few years, so I am trying to decide if I should go with this deal.

Appreciate any perspective. Thanks!

Thegame14
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Joined: Mon May 07, 2018 11:53 am

Re: Yet another solar panel bid

Post by Thegame14 » Fri Mar 08, 2019 8:27 pm

what state are you in? You should also earn SREC, Solar Renewable Energy Credits, that you can sell, I get 10 a year and sell for about $200 each for $2,000 a year and that helps that payback period a lot., but the cost also increases the value of your house, so the payback is to me immediate, if you pay $19K and it increases the value of your house by 19K or even 15K, then you get 30% federal credit, so you are now even or ahead from day one as your house MUST increase in value even at a 70% payback of your investment. so you are ahead from day 1

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SmallCityDave
Posts: 126
Joined: Thu Feb 21, 2019 10:04 am

Re: Yet another solar panel bid

Post by SmallCityDave » Sat Mar 09, 2019 9:30 am

We just received an estimate for a 6KW system just over $15k today and just under $10k after tax credits - that's with a cash discount.

jminv
Posts: 819
Joined: Tue Jan 02, 2018 10:58 pm

Re: Yet another solar panel bid

Post by jminv » Sat Mar 09, 2019 10:01 am

Have you tried EnergySage for comparison quotes (it’s all online)? Several months ago, I received a few 7.5 year paybacks before any tax or local incentives. I don’t think I’d go for a 10 year deal including tax credit.

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SmallCityDave
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Joined: Thu Feb 21, 2019 10:04 am

Re: Yet another solar panel bid

Post by SmallCityDave » Sat Mar 09, 2019 11:03 am

jminv wrote:
Sat Mar 09, 2019 10:01 am
Have you tried EnergySage for comparison quotes (it’s all online)? Several months ago, I received a few 7.5 year paybacks before any tax or local incentives. I don’t think I’d go for a 10 year deal including tax credit.
I just gave them a shot, thanks!

SmallSaver
Posts: 124
Joined: Mon Mar 26, 2012 11:34 am

Re: Yet another solar panel bid

Post by SmallSaver » Sat Mar 09, 2019 11:50 am

One thing to keep in mind when comparing financial quotes from different installers is that there are a number of assumptions that make a big impact on the final number and may be more or less hidden, e.g. how fast electricity prices go up. It's not hard to juice the numbers a little bit. If you're interested, I wrote a guide to financial analysis of home solar, and a worksheet to compare bids.

letsgobobby
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Joined: Fri Sep 18, 2009 1:10 am

Re: Yet another solar panel bid

Post by letsgobobby » Sat Mar 09, 2019 11:51 am

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Last edited by letsgobobby on Thu Apr 18, 2019 12:59 am, edited 1 time in total.

cadreamer2015
Posts: 783
Joined: Wed Apr 08, 2015 1:52 pm
Location: North County San Diego

Re: Yet another solar panel bid

Post by cadreamer2015 » Sat Mar 09, 2019 12:12 pm

I wrote a guide to financial analysis of home solar, and a worksheet to compare bids.
That's a fantastic guide! Thanks for putting that together and sending the link. Looks very thorough and unbiased.
De gustibus non est disputandum

Quaestner
Posts: 129
Joined: Tue Jul 18, 2017 6:39 pm

Re: Yet another solar panel bid

Post by Quaestner » Sat Mar 09, 2019 2:48 pm

Re-roofing will cost more with solar, so I hope your roof is recent? Expect your homeowners insurance to go up a bit. On the upside, solar is fun! Sounds like you have a fair quote. Do it!

Topic Author
jibantik
Posts: 136
Joined: Fri Nov 24, 2017 1:05 pm

Re: Yet another solar panel bid

Post by jibantik » Sun Mar 10, 2019 1:18 pm

Thanks for replies.
Quaestner wrote:
Sat Mar 09, 2019 2:48 pm
Re-roofing will cost more with solar, so I hope your roof is recent? Expect your homeowners insurance to go up a bit. On the upside, solar is fun! Sounds like you have a fair quote. Do it!
Roof is brand spanking new, so that will be ok.
jminv wrote:
Sat Mar 09, 2019 10:01 am
Have you tried EnergySage for comparison quotes (it’s all online)? Several months ago, I received a few 7.5 year paybacks before any tax or local incentives. I don’t think I’d go for a 10 year deal including tax credit.
Yes I tried EnergySage, about the same rates. 10 year feels a bit long to me as well, but I also think this seems pretty normal deal, so hard to say.

SmallSaver wrote:
Sat Mar 09, 2019 11:50 am
One thing to keep in mind when comparing financial quotes from different installers is that there are a number of assumptions that make a big impact on the final number and may be more or less hidden, e.g. how fast electricity prices go up. It's not hard to juice the numbers a little bit. If you're interested, I wrote a guide to financial analysis of home solar, and a worksheet to compare bids.
Good resource, thanks.
Thegame14 wrote:
Fri Mar 08, 2019 8:27 pm
what state are you in? You should also earn SREC, Solar Renewable Energy Credits, that you can sell, I get 10 a year and sell for about $200 each for $2,000 a year and that helps that payback period a lot., but the cost also increases the value of your house, so the payback is to me immediate, if you pay $19K and it increases the value of your house by 19K or even 15K, then you get 30% federal credit, so you are now even or ahead from day one as your house MUST increase in value even at a 70% payback of your investment. so you are ahead from day 1
Hadn't heard of that before, thanks for mentioning. Don't think it's really an option here from what I can tell (NC).

nage234
Posts: 23
Joined: Fri Aug 22, 2014 2:29 pm

Re: Yet another solar panel bid

Post by nage234 » Wed May 15, 2019 10:28 pm

OP, did you go ahead with the install. I am hoping to piggy back on couple of questions I have as I am going thru the same exercise.
1. I received 7-8 bids and the quoted system size varies from 5.8 to 8.2kWp for producing ~10.6kWh power. As the system sizes are varying I am not able to do an apples to apples cost/W comparison. For example one quote was for 5.8 system costing 21,690 vs 8.2 system costing 23,000 vs 6.5 system costing 19,500 (all costs before rebates). All things being equal should I go with the lowest costing system as each of these would cover my electric usage of 10.6kWh?
2. Did you go with one of the "local" installers instead of big names like (SolarPower/Tesla). In my mind I have local installers a tier down as I am not sure on the post installation support and how long they will be in business for. They are promising similar warranties to what you quoted. Any thoughts you can share here.

TY

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