Solar Panels?

[Michael D.]

What do you guys think about solar panels? I'm considering them for a primary residence that we just bought for ourselves.

Salient points:

- One of the more expensive homes in the neighborhood at a little under $900k

- 3000 sqft, two story.

- Shingle roof as old as the house - about 14 years.

- SF Bay Area neighborhood, but not particularly "hipster"

- Our neighbor has solar panels, but I haven't talked to her about them yet (it's high on the list though).

Do solar panels add to the value of the home? What are some of the downsides? I'm not sure what else to ask, so please feel free to just let loose.

Thanks,

Michael

[John Gingrich]

If you are not truly familiar with solar, i suggest you do not add posts that include misinformation.  There is a lot of bad info on this thread.  Here are the facts for solar in CA:

A homeowner with a $150 bill may require about a 6kW solar panel system, depending on their cost of electricity (varies by utility and tier).  This system will cost about $20k offsetting about 100% of their bill.  The federal government provides a 30% tax credit, so the homeowner gets about $6k back at tax time (not a deduction, an actual credit).  So the net cost is $14k.  At $150 per month, that may seem like a small number, but that is $1,800 per year and electricity rates increase about 4% annually in CA.  Over 20 years, that amounts to about $54k!  With solar, the upfront $14k is paid back by year 7 and then the homeowner enjoys free electricity for the next 20+ years.  To to recap, a 7 year payback is roughly a 14% return on the invested capital.  That is a tax free return because it is simply cost savings so you don't pay taxes on it.  In addition, your property value goes up by about 3% or about $15k on average throughout the US due to the ownership of an energy producing asset.

There are several comments about solar being a bad investment.  It is an amazing investment and if you can beat a 14% unlevered (even better if you borrow some of the money), tax-free return, then you are investing in a different market than I am.  Frankly, if you have a solar suitable roof and are not considering solar, you're behind in the times my friend.  Solar makes economic sense, which is why most of the Fortune 500 companies have invested in solar.  Solar is cool, solar is sexy, solar gives you independence and enhances both the resale value of your home and cuts the time it takes to sell a home.  Here are some references your can review to see how independent studies have supported this concept. https://www.energysage.com/solar/why-go-solar/incr....

Far better investment than granite countertops!  Want more info, just ask!  John