Should I Finance Solar Panels?

Should I Finance Solar Panels?

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[EchoCanyonRanch]

From the comments I see there are very few solar advocates, and others are not well researched at all. New high output panels can be had for less than 50 cents per watt. Many states (Oregon for one) has incentive programs that can assist in the affordability of systems with buy-back meters. The biggest investment you can make in solar is the time you put into research before you squeeze the trigger on anything. People who have burned out panels and the like tried to cheap out on the purchase up front. Research, research, research! Hiring a company to do all the work is certainly NOT cost effective. If this callers husband can get a system up and running for $150 a month for the KWH they're using at $400 a month, he's WAY ahead of the game!!

This caller gave you guys no information at all, and you based your response on having the same lack of information. Other callers you tell to sell off vehicles and the like and how to reduce their monthly outflows, but you never bothered to ask anything about this callers assets and liabilities. The other thing not considered was what happens when the rolling blackouts come. We here in Oregon, Washington and California have already been put on notice of the utilities intent to begin conducting these rolling blackouts. Arizona you can bet will do the same. There are also significant losses associated with having your power shut off for a week or two, especially on a one or two day notice, or none at all.

Another factor is that if you go off-grid, it forces you to reduce your consumption. Something they obviously need some practice on at $400 a month for electric!

[albertlake-op]

The logic of paying more money for an anyways bill to avoid debt is mind blowing. “Hey good job you dont have debt!” Meanwhile if your home is a good home for solar meaning the roof gets good sun exposure it’s the difference of thousands of dollars in savings. Utility cost is going to continue to climb. It’s a no brainer.

[EdBball]

Hilarious that the ad that ran for me immediately after this video was selling solar panels

[neilmettheworld]

This is the math vs spirit argument. DR will never tell you to borrow money even if you can outpace the interest rate, e.g. financing a car and placing the cash in a mutual fund vs buying the car in cash. In theory, you can come out ahead where the difference in electrical bill out weighs the loan. Keep in mind that electrical rates will increase overtime.

[samfriedberg]

Dave doesn’t like anything financed. That’s his brand, it works for him, and he sticks to it.
This didn’t address (so we don’t know) whether the caller’s solar costs would be more or less than their electric bill costs - which is kinda important.

[clintonrarey]

Dave,

I’m confused how solar doesn’t make sense.

Homes that make sense for solar don’t cost more to live in. Homeowners are re-allocating the money they spend on their electric bill to pay for their solar.

Since there are no moving parts and solar doesn’t require maintenance or upkeep there is no monthly or yearly upkeep cost

Why would a home upgrade that sits on a homeowners unused roof space that generates power for the home and helps the homeowner lower their monthly fixed cost be a bad investment?

Going solar is just like setting up utility services at your home. Cost you $0 out of pocket to get your services started and you get your first bill usually 30 days after they have been activated.

Same goes with solar. Get solar installed for $0 down. Pay your first bill 30 days later, but the only difference is now you own your power versus renting it from the utility company.

Also if you add battery storage when the grid goes down you still have power.

[miguelsalami]

Anyone can afford Solar Energy. You can piece the system together paying cash for each item until you have everything you need for the installation. Start out with a small system two 100 watt panels, a charge controller, one Lifepo4 100ah battery & a pure sine wave inverter.
Later you can Expand the system by simply adding panels & batteries to meet your KWH requirements.

[rickdaniels]

Why hasn’t everyone got it by now. No finance with Dave

[braniganrobertsonlaw]

I put panels on my roof and a battery in my garage. My neighbors started copying me and now several on my street have them. I'm not going to lie, I absolutely love them. I've had zero issues with them. They just work. In my opinion, they are one of the greatest tools we have in fighting climate change. Plus, my electric bills have disappeared. if the zombie apocalypse happens, I'll still have power. Thankfully, I didn't take out a loan to get them. But, I wouldn't shy away from that if you are responsible with money. Dave takes a hard line on most debt, which I appreciate. But our planet & community is worth it. If people are responsible with their money, I think they should take out a loan to get solar. We all have a duty in the world to reduce our carbon footprint, and panels & house batteries are a great way to do that.

[AndrewNuttall]

I am normally against debt for these types of purchases, but Arizona where there's tons of sun and a $400 electric bill? If you can show that solar is going to cover your full electric usage (bonus if you have net buy back in your area for any over production), then you would be lowing your monthly bills by $250/month based on the numbers given in the episode. You're either paying a loan for your own solar equipment, or a lease for the electric company's equipment to generate your power, so why not get out of the "fleece" as Dave would like to say?

[eckankar]

I'm in Phoenix. Two of my neighbors got solar panels and they burned out in a couple years due to the heat we have here. One neighbor found his panels at 180 degrees before noon due to the heat and sun, the panels gave away. Dead panels, holes in the roof and out a lot of money as the warranty was worthless.

[bettysmith]

No, these are a rip off. You pay more to have them removed, repaired or replaced than you will just paying the electric company.

[toothybj]

We have solar salespeople coming to our door at least once a month or so. I usually tell them to beat it (in so many words). I like the idea of solar, but want to know more about it first.
The fact that companies are pushing it SO hard makes me think it’s a better deal for them than it is for the consumer…

[donnalutheran]

Also, watch out for extra costs. Sometimes they will require a new electric box and new roof. The panels do wear out too. Flexible ones have been know to catch on fire. I charge mine on my deck to a solar generator

[gilmendoza]

It’s a lien against your home, you have to pay it if you want to sell your home…

[Lianne]

My neighbor has solar and adores it. Her electric bill is 40 dollars a month now.

[arn_thegreat]

Aaahhh wrong 👎🏼 !! she has a $400 electric bill that will keep going up 10% plus every 6 months to a year. By going solar right off the bat she will be saving $250 not including the savings compounded every year after that because the utility companies increase their rates that is a never ending bill. She can definitely utilize that extras $250 and pay off a CC and be debt free on them high ass credit cards. I always say there’s good debt and there is bad debt in life.

[tomiasthexder]

Your electricity bill doesn't go to reduces during sunny daylight hours for sure. The loan guy will sell you that. They are great, my electricity bill in summer is very low, but not zero.

[ucaerospace]

Solar is great if you do as much of it as your allowed as a DIY. Most solar panels have a 25 yr warranty & batteries are lasting over 2000 full cycles now. Half of what you pay these companies is for the labor & tax.

[Max-udzy]

It costs the same as a bill that I’m already paying, and will continue to pay for the rest of my life. How is that worse than paying a loan with a lower interest rate than the rate that my power bill has been increasing?