Originally posted by @Alisa O.:
James,
You already have the answer. In your situation it makes sense. There are only 2 points I would be interested in before I signed the contract:
1. You mentioned those newer Sunpower panels that would guarantee 92% efficiency at year 25. I would be interested in their cost. 80% is good, but 92% will allow you to use the panels a bit longer than 25 years (if the actual roof will withstand). Who knows, you might squeeze a few more years out of them. Even if you are making $3000 or ever $2000 vs $4000 at optimum capacity, I don't think you would find it too offensive. Also, you already know the Sunpower technology exists and is out there. If the cost makes sense, I believe its better to buy the latest more efficient model if the funds permit. As an analogy think of it as buying this year last year's model.
2. Biden is seriously pro "green" and alternative energy. He wants to invest $400 billion over 10 years. Even if he doesn't get the full amount, he will continue pushing to get something. I see additional tax credits and incentives in the near future. Can you wait a few months to see what he will come up with? You might find it beneficial.
My friend is one of the pioneers in solar energy farms in Erie County NY built a solar farm with his business partner. Right after they bought a hotel and converted it to the apartments and everything to electric. They will use energy from their solar farm to energize the building. He was telling me his numbers and they sound really attractive. The bank really loved that solar component as well. Whats interesting in his situation is that he will be offering an all inclusive rate for the apartments. Tenants can budget the same amount every month and don't need to worry about the additional bills. While my friend will have one bill for the building, which he would cover with the solar credit from the farm, the tenant essentially would save the base delivery rate for gas and electric, even if they don't use any utilities. For some tenants this saving is crucial and one all inclusive apartment bill is a huge benefit. My friend and his partner will get extra income, just like you will. Our cost in Buffalo is about 18c/kwh and it still makes sense to go solar.
You are on the right track.
Alisa,
Really great points, I honestly hadn't looked very close at the numbers between Tesla and Sunpower because the idea of a Solar Roof that is cheaper (after incentives) than a standard roof was just too appealing to not discuss with the BP community straight away!
I took a closer look at the Sunpower vs Tesla; long story short is that the Sunpower costs $5,453 more upfront and it produces $19,495 over 25 years. This comes out to a 5.45% annualized rate of return. Since this is still $0 down the cash on cash is "infinite". The major concern with the Sunpower roof is that they're putting lots of holes that are warrantied for 10 years in a 25-50 year asphalt roof...
I will look into any indications for potential Biden proposals closer before I move forward. I imagine most incentives will likely be qualified based on when the system is put in service, which between the Tesla backlog and the permitting lead time could very well be the end of this year and likely would qualify for new stimulus legislation. The 26% federal investment tax credits where extended for two-years with the most recent stimulus package, so there is no longer a rush on that front.
I find it really interesting the solar farms that are being installed in upstate NY. If large-scale solar makes sense this far north, it has to make sense in other areas that have better insolation.
Details of cost analysis: