Sign of the times

[aldiaz33]

aldiaz33 , thanks for the very detailed info on your new solar setup including costs. I hope to hear updates on how it's working out for you in the coming years. It also helps to make it more worthwhile due to your sunny location and generally nice weather throughout the year.

It may seem like an odd question but do you need to add the solar panel equipment to your homeowner's insurance just in case there is damage to the system whether it be weather related, accidental or vandalism?

Happy to share any updates/developments. I don't anticipate anything newsworthy. I know lots of people who have had systems for many years and they've run flawlessly; no issues at all. I will say that it's been awesome setting the A/C pretty much as cold as we want it during heat waves without worrying about our power bill. Same for running my pool pump (I used to run it only 3 hours/day, but I set it for 8 hours now and the water has never looked better).

That we're spoiled with relatively nice weather year round definitely helps. No snow to block the sun where I live.

In regards to insurance, coverage will be carrier-specific (so you'll want to check your specific policy), but in my case, a PV solar system is considered a permanent attachment to the structure of my home and therefore covered. You may want to increase your overall coverage limit to account for the added value of the system in case of a catastrophic event where you lose everything.

 

[aldiaz33]

Update: with the passing of the Inflation Reduction Act, any solar systems installed 2022 onward will receive a bump up in the tax credit from 26% to 30%.
If I'm reading the legislation correctly, there's also an additional 10% credit for systems installed in low-income neighborhoods (I qualify even though a house around the corner from me recently sold for $900K! Welcome to California).
I now only pay $10/month baseline connection fee and that's it. My June, July and August bills would have been $400+/- each month if it weren't for the solar panels. The system will pay for itself in less than 4 years. My after tax credit cost is $14,920 on a 9.12KW system ($1.64/watt installed).

There will be changes to Net Metering rules in California sometime in August of 2023. From everything I have read, the current Net Metering rules (NEM 2.0) which give retail (1 to 1) credit for any excess production is protected for 20 years. Anyone installing systems after sometime in August of 2023 will fall under different (less favorable) Net Metering rules (NEM 3.0) which are currently being discussed by the CPUC.

If you're in California and are considering getting solar, there is basically no doubt that you will be better off getting a system before the new NEM 3.0 rules take effect. If you're handy, do it yourself. Otherwise, shop around. Get estimates from multiple contractors. You can easily find deals where the system will pay for itself in 5 years or less. But you'll also get astronomical bids with 10-15 year ROIs.

In the future, I believe every house will have a solar system paired with batteries. Ten years ago when I got bids for 5KW systems for $60K, the numbers didn't add up. But the technology has improved, the prices have come down substantially and for anyone paying $250+/month for electricity, it's a no- brainer (as long as you shop around and purchase the system -no PPA/lease shenanigans).

PS- to give an idea just how expensive electricity is in California, to run a 3/4HP (750 Watt) pond pump will add over $200 to your monthly power bill.

 

[aussieman57]

We just contracted to go solar here in SW FL. Our provider FPL received legislative approval for 4 rate hikes; and not small ones. The 1st rate hike was already implemented and we noticed a big bump up in our electric bill. FPL does net metering with a $20 per month charge for that privilege. Our electric bill will be nil after the solar is installed. Also found out you can extend the solar tax credit over multiple years.

 

[Rougarou]

Here's the secret to having cheap energy: Throw the leftists out of office.