Solar Panel Financing | Which Payment Method Reigns Supreme for Your Home's Energy Independence!

When looking at solar for your home there are a TON of things to consider. One of the most important is how are you going to pay for this large purchase? Buyer beware as some of the most attractive sounding options could be the worst for your situation and future plans with your home. I will walk through the 4 options, which one I prefer, and what the viewers of my channel said through a poll where they voted on the same 4 options.

DISCLAIMER: This video and description contain affiliate links, which means that if you click on one of the product links, I’ll receive a small commission.

[jmcguire]

My roofing/siding guy said they took all the unemployed used car salesmen and put them in the solar industry.

[cornpop]

Homeowners need to check with their insurance company before installing a PV system. Certainly, roof installed panels, will raise your insurance (often 1.5x to 2x). Also, having too many panels, could even 3x or 4x your rate.

Also, some electrical utilities charge a monthly fee, just for having electrical service, and a separate charge for a deduct-meter.

I personally pay $55/mo just for having electrical service to my house. So my electric bill cannot go lower than $55/mo, even if I use no electricity.

My utility charges an additional $45/mo for a deduct meter. If I had a deduct meter, my lowest electrical bill would be a total of $54/mo plus $45/mo = $100/mo. That's before I use any electricity at all.

Your situation may be different, the point is, the combination of special fees you pay your utility PLUS the additional price you pay your insurance company, may make it so solar actually costs you extra money per month. Not to mention what the PV system costs you to buy, finance, or lease.

In other words, even if my sytem fully powers my house, I may still have a negative return on investment.

Just having solar would cost me $15k more over 20yrs than if I simply didn't use solar. Add to that let's say $30k for the system, and I've paid $45k just for having the solar. I would have to offset $188/mo in actual electrical power, in order for the system to break even over a 20yr period. If you think all the components of that system will last 20yrs, you're pretty gullible.

Again, all this wouldn't apply to everyone, but some of it probably will apply to you. However, the people selling you systems certainly aren't going to tell you about all this!

There are other issues which are possible, but my thum is getting tired of typing!

[aaronhall]

I just did a 19kw system in WA with a combination of cash financing and a loan subsidized by the State of WA. My rate was 3% lower than taking the same amount from my HELOC. They also allow you to pay down your loan and re-amortize your payment.
This allowed me to essentially target a loan payment that is about the same as I will save on my electric bill.

The WA state loan is up to $100k and can be spent on Solar energy efficiency improvements. The current rates offered are between 5-6%. I was lucky to get my system installed last year when rates were 3.5%

[i_am_a_freespirit]

My finances ONLY allowed me to buy one at a time...I bought Deep cycle Marine batteries first, then I bought the Solar Panels, and last I bought my ladder. I bought a plug and play System, and installed it myself.

I am 62 + year old female. If I can do it, anyone can do it.

After I get my land paid for, I will invest in better batteries and more panels. I ONLY have 1 - 100w panel and two (2) 200w Panels.

Mine is a small scale system, but everything is paid for.
My cost give or take was approx $1200.00 before the pandemic!

[cornpop]

My advice to new home builders, is to invest in efficiency. For instance, the insulation you use for your building envelope will last the life of the home. It works winter and summer and never breaks down. I go R30 on walls and R75 on attic. Also, make the house tight! (<1 ACH @ 50 Pa pressure).

Next, get the highest SEER rating on your HVAC. It will likely last 20yrs, so calculate the savings vs the cost.

I'm going to do some rack mounted solar in my yard, without a deduct meter. The solar will power my large water heater which will only heat during mid day.

My clothes dryer will also run off solar. Same thing, only run it mid-day.

I'll have to option to run the WH and dryer off the grid, but will usually opt for solar when available.

I'll also prioritize my HVAC on solar, and because of the extreme efficiency of the house, it can run mid day and suffice for the whole day.

With the largest loads covered by solar, there's no need for a deduct-meter or a large battery system. Although, I will have a relatively small backup battery, for maintaining lights, internet, and TV, during a blackout.

I UPS the internet and the TV now, and it makes the occasional blackout seem fun.

[michaelwittman]

Well done, I especially appreciate your honest opinion of the pros and cons. You really did your homework on this video!

[chucktrotter]

4.17.23 Scott, I am building a system little by little as funds allow. Buying used solar panels. Bought a Growatt MIN 6000tl-x grid tie inverter 240 volt. Wire, conduit, power load center and breakers. 24 volt batteries and chargers. So far I have 9 panels on a ground mount and 4 panels on a mount that I can roll around. I am looking to buy another 12 panels. As time goes on the all in one inverters are getting better and less costly.

[shodack]

We had a lease on solar panels on my previous home. Unfortunately the entire things was done without my involvement and was an awful deal. Monthly payment went up each year. I was very lucky when I sold the house that the transfer was very simple and the new owners wanted to keep the lease.

[hassanbazzi]

I would probably pay cash but I don’t think I would have one installed. I think it is still new in the market. Great information and thank you for sharing

[kamX-rzuy]

I had one company give me a loan quote that was a standard loan and another company had a loan with all the interest front-loaded. The total interest on the front loaded loan was a good chunk lower, somewhere around an APR of 2% less. That can be a good deal for people who do not plan to pay the loan off early. If you think you might do an early payoff, either through extra payments or if you sell your house, then of course do the standard straight-line interest loan.

[CostaMesaPhotography]

Cash makes the most sense (or HELOC if you don't have the cash), but a downside you didn't address was maintenance/service. I don't have any experience with solar installations, but I would think that there would have to be a warranty, and along with that some sort of service or maintenance agreement. I don't see these as expensive, but certainly important to consider.

[RickFarris]

I'm going straight cash... Panels and inverter/infrastructure this year and a full-home battery next year...

[ascienceguy-]

I paid cash, and would again if finances allowed. However, I put up my first array in 2005, when PV was first allowed in my state. Cash was the only option at the time. It is amazing how many middle-men have jumped in to take a cut over the years

[jimmypautz]

Project Solar is pretty good for diy solar. I had success with them.

[SammyFender]

When you mentioned diy solar system a couple videos ago, I was thinking harbor freight type diy! I now think solar isn’t gonna be in my future. And since I’m 66, I won’t realize ‘free’ energy in my life

[LordHolley]

Save money until you can pay cash for The only thing you should ever finances a house. IMO, The return on financing a home solar system just isn't there unless you have a big battery pack so you can store energy during daytime, and use it in the evenings instead of sending it back to the grid. That's a whole other big expense on top of

[heatherjennings]

I'm hoping and assuming, you'll make a video on your install. What was the reason for your 4 KwH system? How much electricity will that cover for you?

[efg]

Different states/utilities have different rules and fees for adding solar so be aware of that. Those rules and fees only apply if your PV system is “grid connected” which 99.9% are.but someday soon the battery storage technology will get to the point where we won’t need to be “grid connected” and that’s when the solar industry will really begin to be adopted nationwide.

[gregpochet]

You should also talk about how some states have Solar RECs. This is another source of income that would not be available to people who lease and maybe the PPA route.

[marioceres]

A break down cost and timeline to when you will see your return in the investment will help better. Examples showing different loan terms, will help people better understand. If we use the lower cost 25k with a 10 year term. You will end up paying roughly $200 a month, that can help people decide if it is worth it or not depending what their current bill is. If they pay $200 a month right now then they will not see any return in the investment for the first 10 years and then their warranty might expire in 10 years, they will need to pay to replace panels. Will the company still be in business after 10 years?