Let's talk about solar power... (lease, HOA, credit)

[HX_Guy]

I think there are a couple of people here who have gone the solar power route, I wanted to get some feedback on your experiences, would you recommend it...pros/cons?

Anyone else considering it or was considering it and decided against it?

Had a lengthy conversation with Solar City on the phone about a potential system. Return on investment if you purchase is crazy and by the time you're in the plus, the system is out of warranty and probably badly outdated. The other option is to lease the system which is what most people do. With this, you have a fixed rate for 20 years and the system is maintained fully by the solar company.

Do you save money? Today, potentially. In the future, more likely.

We use a lot of electricity being home all day and having two A/C units, to the tune of 20,000 kWh per year so we would need a fairly large system though we could only go so big because of roof size. They figured they could probably fit a 10 kW system which would produce 16,799 kWh/year, so it wouldn't totally cover all of our use.

This is what they guarantee the system to produce monthly:



Price wise, it would be $175/month fixed for 20 years. We would still need to use APS for some of the summer months, but some winter months, we would actually get a credit on our bill to apply to those months since power that's produced goes back into the grid. In the end, I think as of today, it would probably be a wash with how much we pay now though there might be some savings, I haven't crunched the numbers yet. Our electric bill ranged from $138 - $457 per month over the last year (with usage between 962 kWh to 3241 kWh per month).

One of the benefits however is locking in that price because for sure over the next 20 years, APS (the electric company) is going to be hiking up their prices every year as they always have. Does anyone know about how much APS increased cost per year? I wonder if the information on the past 20 years is somewhere online.

[phx1205]

I don't have any experience in solar, so I can't answer your questions, but did you look at your HOA CC&Rs to see what restrictions they might place on solar panels?

[MalteseJane]

It's kind of complicated. Our system was installed end of 2011. We have a 8.25 KW system and it covers all of our use. For now we have exceeded the guaranteed production. We took the 20 years lease but unlike a lot of people, we choose to pay off the lease amount up front. So we don't have any monthly lease payments. We figured it was not worth leaving that money sitting in the bank with the very low interest they are paying right now. But that's us. Now where it gets complicated, it is with APS buying back what you don't use.
Need to go now, I have an appointment. Will tell you more this evening.

[LBTRS]

I had the same conversation with Solar City and it was also a wash as the price I was going to pay them per month was right at the average I pay APS each month. I told the guy "it's not worth the hassle to deal with the install, deal with you guys, deal with the maintenance, etc. for no monetary upside". He told me "but in 15 years there could be a monetary upside". I said "I have no intention of being in this house in 15 years so I don't see the point".

I also added that the contract with them may complicate me selling this house at some point by having to convince someone to take over the $200 monthly payment.

I didn't see an upside for us but if you plan on staying in your house for a long time it may be worth it for you guys.

[HX_Guy]

Our average APS bill is $240/month so the $175 is obviously less, but it wouldn't cover the total use. That's where I have to figure out how many kWh's they guarantee per month and look how how much we use each individual month and see if I can figure out how much the lease payment + the APS bill would be.

The upside is that we do plan on being in this house for a very long time...30+ years?

[hikernut]

Couple questions:

If Solar City goes under, what happens to the system maintenance agreement? Inverters and the grid connect electronics typically have a shorter life than the panels, and need some periodic repair/replacement.

What's the status on APS wanting to collect some extra fees from customers with solar?

Thanks,

hikernut

[HX_Guy]

Good questions Hikernut. If they go under, do you get to keep the panels? Even if you are now required to maintain them yourself, would probably still be a big benefit. I wonder if it says in the contract, probably does.

[MN-Born-n-Raised]

Originally Posted by phx1205

I don't have any experience in solar, so I can't answer your questions, but did you look at your HOA CC&Rs to see what restrictions they might place on solar panels?

I heard that an HOA has to allow solar. They have no choice.

[DesertNewbies]

Originally Posted by MN-Born-n-Raised

I heard that an HOA has to allow solar. They have no choice.

I've heard the same. HOA can't deny solar. Our HOA confirmed that statement.

[MalteseJane]

Originally Posted by hikernut

Couple questions:

If Solar City goes under, what happens to the system maintenance agreement? Inverters and the grid connect electronics typically have a shorter life than the panels, and need some periodic repair/replacement.

What's the status on APS wanting to collect some extra fees from customers with solar?

Thanks,

hikernut

If Solar City goes under there is some one else going to take care of the maintenance. Your lease is not going to be with Solar City. Our panels have been installed by PEP Solar and our lease is with NRG Sunlease.
Since we installed our panels in 2011 we don't have to pay APS the extra 5$/month fee.