I am finally doing it. I am getting solar for my house.
I have been against solar power systems for homes for many years. I even wrote a blog about why solar panels are not a good idea. Although I stand by the statement that a solar lease is terrible, I recently signed a contract to purchase solar for my home and I’ll tell you why.
Degradation is when the condition or ability of the solar panels goes down. There was a time when solar panels would lose over 75% of their ability to generate power within a five-year period of time, especially here in Arizona. The sun can produce power, but that same sun can be damaging to materials that are constantly under its rays.
However, technology has come a long way over the past three years. Now a good quality solar panel will only degrade around one percent per year. And good solar companies provide a 25-year warranty on their panels. This warranty includes degradation!
It has been no secret there is a big push for green energy. Regardless of where you sit on the political spectrum or belief that green energy is actually helpful, the fact remains that there are many opportunities for new solar technology and companies to enter the market. When there is competition in a particular market, costs for the items in that market will likely go down.
This is what has happened with solar. Competition has driven companies to become more efficient and cost-effective with their processes from manufacturing to installation. Some estimate that the price of solar has gone down over 80% since 2010.
Beyond cost savings are the tax credits from the federal government. In August 2022, Congress passed an extension of the tax solar tax credit and increased it to 30%. This means that for every dollar you spend, you get 30 cents as a federal tax credit. Therefore, the NET cost of the system is 30% less.
Time in Home
So far all of the above sounds great. Solar costs less than ever and lasts longer than ever. But there is a problem: solar is expensive. You could lease a system, but if you do that, you do not get the tax credit, and as I mentioned, leasing is a bad idea.
You would think the cost would be returned to you over time by having a lower energy bill, and that is true. But the break-even point is typically between seven and 10 years. That means based on what you pay for the system and what you would save on your monthly energy bills, you would not start seeing NET savings until almost a decade later.
For me, I just purchased a new home. This purchase was a long-term purchase with a lot of family considerations. My next door neighbors are my in-laws. It’s great! As a result, we don’t plan to move for a very long time. We know that it is highly likely we will be in this home well beyond 10 years. So, buying solar makes sense for us.
I have been critical of solar in the past. Honestly, I am still critical of it. But solar lasts longer, the NET cost is less, and I plan on being in my home for a long time. Therefore, it makes sense for me.
If you are interested in getting solar, check out Watt Logic. This is the company I am using. I received quotes from multiple companies and did a lot of research. I chose Watt logic because they have a great warranty, and integrity. Believe it or not, they actually told me to spend less money! Based on their independent research of my SRP bill, they said I should have a smaller system to get the biggest bang for my buck. How cool is that! For more information about them, head here: https://wattlogic.com/residential/home-solar/