Roof-top Solar Panels – Worth It?

After years of debating, I finally decided to go with roof-top solar. I’m almost year in. Let’s talk about what worked, what didn’t and what the savings might look like.

Why Panels?

In 2019, my wife and I bought a hot tub. It sits outside on our deck. It’s a delight.

Prior to buying, I checked out sites like here to see what electric costs might look like. Most sites said anywhere from 20 to 80 dollars per month. These sites are clearly influenced by the hot tub salesman’s association, because my electric cost in the winter is almost $200 per month. It’s less in the spring and fall, and very small in the summer, but it turns out it’s expensive to keep 400 gallons of water at 100 degrees in a New England winter. Who would’ve thought??

Anyway, this isn’t about hot tubs, but the hot tub was the driver. I felt awful about the amount of electricity and the cost. So I started looking at solar panels.

Shopping

There is a ton of info online. This is good news and bad news. How do you interpret all this info? Kudos to a site called energysage. I found them early in my search. They hooked me up with an energy advisor, helped me get quotes from 5 different installers, and then helped me with my questions about panels, inverters and other strange new technologies. I probably paid a bit more by going through them, but it saved me a ton of time and helped me make better choices.

Installation

I chose a company called Nuwatt energy because they had high efficiency panels, individual inverters, and they were pleasant and helpful to work with. It took about 5 months after signing the contract for my installation, but they made me aware at signing so I was OK with this. A team came out and installed 22 panels in 1/2 day. They cleaned up after themselves and made good suggestions about running cables and panel placement so it wouldn’t be an eyesore.

Month 1

Install was completed in the 1st week of April, and the electric company came out and did their part a few days later, and we were online. Come May, I got an electric bill of $0, down from almost $300 the prior month. Yay!

Net Metering

This is an important term for anyone considering solar. My state has net metering, which essentially means that I pay for the difference between what I generate and what I use. If I generate 100 kWh and I use 50 kWh, I get a credit on my electric bill for 50 kWh. The next month, if I generate 100 kWh and I use 200 kWh, my net usage would be 100 kWh, but I have a credit from last month for 50 kWh, so I would only pay for 50 kWh. Credits can accrue for months until you need them.

So essentially, I’m using the electricity I need, I’m sending electricity that I generate and don’t use back to the electric grid, and I only pay for what I use beyond what I produce.

If your state or electric provider does not support net metering, you’ll need to understand if and how you will be compensated for any electricity you produce but don’t use.

Battery?

I looked into battery storage. Instead of sending excess power to the electric grid, I could store it in the battery and use it after the sun goes down and I’m no longer generating power. I decided no to go with this. Maybe later.

Cost

Total cost was $29,000. I got a 30% tax credit ($8,700) on my federal taxes, and a $1,000 credit on my state taxes. I’ve filed my 2023 taxes so I can confirm that I got both credits. My net cost was $19,300.

Energy Production

So, the big question….How much energy do I produce?

The system comes with a phone app and web page that show details on energy production. Here’s a chart showing 2023 production.

We had a much more rainy (than usual) spring and summer in 2023. May was quite hot, and then it rained almost every weekend, and a bit during the week for the next 3 months. People weren’t happy but the golf course was in great shape. But even with the lack of sun, I produced quite a bit of power. I didn’t pay an electric bill until December.

Cost Savings

The lifetime tab shows me the total energy produced since April 2023, and the savings. I’ve saved $3,000.

I also calculated usage on my own using the data from the panels and the info from my electric bill.

This shows the rate from my electric bill (per kWh), the panel production (negative means a credit – I produced more than I used), electric cost is the value of the credit (if negative), or the cost for the electricity I’ve used. Distribution charges are from the electric bill, and net is the total of electric and distribution charges. Cumulative is the important column. This shows the credit building early on, and then as fall hits, and days get shorter, I start using the built-up credit, until December, when it’s all used up and I have to pay.

Total

So after 1 year, I’ve paid a total of $464.56 for a year’s worth of electricity. I can’t compare exactly with the prior year because I added a mini-split heater to one room last year so my energy usage has increased for that, but a $3,000 savings sounds about right.

Was it Worth it?

I spent $19,300 and I got a $3,000 savings. That’s about a 15% return. Much better than the 5% I could have gotten from a T-bill or a CD. And I used less electricity from the grid and lowered my carbon footprint.

I would say yes, it is worth it. We’ll check back in a year and see how we’re doing then.

Have comments on your own experience or advice for someone considering solar? Post a comment.

Leave a Comment

Your email address will not be published. Required fields are marked *