It’s been a heck of a while since I’ve written here. In case you haven’t been following, shortly after I promised Jordan I’d recap our Jamaica travels, something not so awesome happened to my car. Then some other things happened. And well, here we are. And the topic I have for you? Solar panels.
If you don’t have a south-facing, unshaded roof, I’ll save you the trouble. You can probably stop reading.
But if you have at least that, there’s a good chance solar may be for you if you act in the next year. It worked out for us – even economically – and this post will tell you exactly why. I got really excited about it and chances are if you’re still reading, you may be in the same boat.
Bottom line: given our assumptions, after twenty five years, we should have roughly $34,766 more after having installed solar panels than if we hadn’t.
Overview
We were on schedule to pay AEP $86k for electricity over the next twenty five years. By buying $27k worth of solar panels, we are on schedule to only pay AEP $24.5k for extra electricity over the next twenty five years.
Key Numbers
- All our solar equipment is warrantied for 25 years.
- There is a 30% tax credit through 2016.
- Columbus, OH averages about 4.2 hours of sun per day throughout the year (check your city here).
Major Unknown
There is one major thing that is out of our control: electric prices. In past 10 years, the cost in Ohio has gone up an average of 4.5% a year, so we used that as a baseline for our financial predictions. Obviously, this could swing a lot of ways so it has the potential to be a huge factor. But it’s about the only unknown we felt like we had to decide if we were comfortable with.
Time Horizon
Now if we suddenly move out of our house tomorrow, there’s a good chance we won’t recoup the full amount we paid. So given our inclination that we’ll live in the house for decades, that sure helps.
It’s still a little early to tell but if our calculations are exactly correct, we’ll end up paying about $49 extra a month in year 1. By year 5, we’ll be paying approximately $28 extra a month. And by year 10, we should be cash flow positive. By year 13 we should break even. After that, we should be in the black for good.
This is definitely a long-haul “investment.” Though I hate calling it that because we’re going to use the energy whether we own the generation equipment or not…
Roof Condition
Another thing we had to consider was our roof. Given it’s still fairly young, it’s unlikely we should have to re-roof in the next 25 years. Panels can be removed and re-installed (ours were done in a day) but there’s obviously a cost associated with doing that. So roof condition is something important to consider though shouldn’t be a deal breaker.
Closing the Deal
After all the spreadsheets were calculated and the proposals submitted, we ended up with a pretty clear-cut winner. They were knowledgeable, extremely customer-centric, and super timely.
If you’re interested in running some numbers, let me know and I’ll give you the contact info for the company we used. I’d highly recommend them. For us it ended up being a no brainer and perhaps it will be for you too! I’ll be completely transparent: if you use our name as a referral, we’ll get a referral bonus. But that’d just be icing for us.
Hugging Trees and Ongoing Monitoring…
You’ve probably concluded that we approached this mainly from an economic perspective. I’d be lying if I said it wasn’t majorly important. But there’s also that thing about going green. About making a socially conscientious choice. About explaining to your kid that, much like that old calculator that is powered by light that she pretends is a cell phone, in the same way, your roof is generating power for your house – just a million times magnified.
And don’t forget about the app! There’s even a handy app that shows you what your current production level is as well as some historicals. And the online dashboard is pretty cool too. After three days, here’s what ours looks like:
That’s about the longest post you’ll read on here. If it’s been worthwhile, drop me a note!