So, you’re thinking about going solar? Awesome! But before you dive in, let’s walk through the key steps that will help you figure out if going solar is the right move for your home. Vignesh and I recently went through this process, and we want to share what we gathered, from calculating potential savings to evaluating your roof and choosing the right equipment.
1. Understand Your Electricity Usage and Costs
The first thing you need to do is take a good look at your current electricity usage and costs. Grab your recent electricity bills and note how much energy you’re using each month, as well as how much you’re paying. This will give you a baseline for understanding how much solar power you’ll need to cover your usage.
Now, let’s talk about electricity prices. If you’re with a utility like PG&E, you’ve probably noticed that rates are climbing every year. This is important because the higher those rates go, the more you stand to save by going solar.
The image above shows our usage for a full year. We used this to get an idea of our electricity consumption. You can get this from your most recent bill or you can do a quick calculation:
- Current Annual Electricity Cost: Let’s say you spend $150 a month on electricity. That’s $1,800 a year.
- Projected Cost Over 10 Years (Assuming a 4% Increase Per Year): After 10 years, with a 4% annual increase, your electricity cost could jump to about $2,664 a year. Over those 10 years, you’d spend around $22,000 on electricity!
With going solar, you could lock in your energy costs. Instead of paying rising utility rates, you’d be covering your energy needs with free sunlight after your initial investment.
2. Check Your Roof and Solar Potential
Your roof is the stage where all the solar magic happens. You need to make sure it’s up to the task. Start by considering the following:
- Roof Age and Condition: If your roof is nearing the end of its life (say, 10-15 years old), you might need to replace it before installing solar panels.
- Orientation and Tilt: The best roofs for solar are south-facing with a moderate tilt. Even if your roof faces east or west, or has a less-than-ideal angle, going solar can still work—you might just need more panels.
- Shade: Check if trees, chimneys, or nearby buildings cast shadows on your roof. The more sunlight your roof gets, the better your panels will perform.
You can use tools like Google Project Sunroof to estimate your home’s solar potential. For us, this tool confirmed that our south-facing roof would soak up plenty of sunlight, making it ideal for going solar.
3. Calculate Your Break-Even Point and Potential Savings
Here’s where we dive into the numbers. You need to know when your investment in solar will start paying off, and how much you’ll save over time.
- Total System Cost: Let’s say your solar system costs $20,000.
- Federal Tax Credit: You can currently get a federal tax credit of 30%, which would reduce your cost by $6,000, bringing it down to $14,000. You can find more details on this credit on the U.S. Department of Energy website.
- Annual Savings: If going solar saves you $1,800 a year in electricity, your break-even point would be just under 8 years ($14,000 / $1,800). After that, your electricity is essentially free.
Before you jump into the financials, it’s crucial to compare different solar suppliers in terms of their cost per watt ($/Watt) before rebates. This metric helps you understand what you’re really paying for the energy your system will produce. Generally, a price around $3 per watt is considered a great deal. However, don’t be surprised if the initial quote you get is closer to $5 per watt. This can look tempting when spread out over payments, and rebates might make it seem like you’re paying what you currently pay for electricity. But remember, the goal is to break even sooner—not just match your current bill. If you don’t ask for a better rate, you won’t get it. Haggle with your vendors; push for a lower price per watt to make your investment worthwhile.
Don’t forget to factor in local incentives or rebates that could bring your costs down even further. Websites like DSIRE (Database of State Incentives for Renewables & Efficiency) can help you find specific state and local programs. Plus, remember to consider net metering—a system where you can sell excess electricity back to the grid. Check with your utility provider’s website to learn more about net metering options in your area
4. Choose the Right Panels and Equipment
Now, let’s talk about the solar equipment itself. The quality of your panels and inverters plays a huge role in how much energy you’ll produce and how long your system will last.
- Tier 1 Panels: These are the top-of-the-line panels known for their efficiency, durability, and long warranties. We chose Tier 1 panels because they’re built to last and have high efficiency, meaning you get more power out of each panel.
- Microinverters vs. String Inverters: We went with microinverters because they allow each panel to operate independently. This means if one panel is shaded or dirty, it won’t drag down the performance of the entire system, unlike with string inverters.
5. Understand Financing, Rebates, and Net Metering
Finally, you need to figure out how you’ll pay for your solar system and what financial incentives are available to you.
- Paying Cash vs. Financing: Paying cash upfront gives you the biggest long-term savings, but financing can make going solar more affordable right away. While paying cash can be tough, it often gets you better offers. Vendors are more willing to give discounts or lower the $/Watt if you’re paying in full, so it’s worth considering if you have the means.
- Federal and State Incentives: As mentioned, the federal tax credit can shave off 30% of your system cost. Your state or local government might offer additional rebates or incentives, so definitely check those out on the DSIRE website.
- Net Metering: This is a big one. With net metering, any extra energy your system produces can be fed back into the grid, and you’ll earn credits on your bill. This means during the day when you’re at work and your panels are producing more than you’re using, you’re not wasting that energy—it’s going to good use and saving you even more money. For more details, check your local utility provider’s net metering policies.
Final Thoughts
Deciding to go solar is a big deal, but if you break it down into these five steps, it’s a lot easier to make an informed decision. Start by understanding your energy usage and how much you’re spending on electricity (especially with those rates going up every year). Then, check if your roof is ready for solar, calculate your break-even point and potential savings, and choose the right equipment. Finally, make sure you’re taking full advantage of any incentives, financing options, and net metering programs available to you.
If you’re still on the fence, I’d recommend talking to a local solar consultant who can give you personalized advice based on your specific situation. And remember, going solar isn’t just about saving money—it’s about investing in your home’s future and doing your part for the environment.
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