Not much talk about solar power in SW Florida (Cape Coral: appliances, loan)

[Macgregorsailor51]

This is NOT something for retirees.. Its NOT cost effective.. Harbor Rat has been Hitting The Balls Out of the park as of late!! On St Croix Electric is Crazy High.. and poorly delivered..
Maybe Florida's Southern Keys?

Originally Posted by HarborRat

Electricity is cheap here. While you may break even in 10 years you have to worry about storms destroying the panels in that time and higher insurance costs. Also, from what I understand, the Florida heat actually reduces the efficiency and life expectancy of the panels. In 10 years you may get half the output of when new. When it comes time to replace the roof every 15 years or so (down here) it would not be worth paying to reinstall the old and worn out panels on the new roof, so don't expect "free power forever" after you get your ROI. Home buyers won't pay much extra for a house with 10 year old panels, if anything.

In a perfect world solar would be great down here. But most people weigh the reward against the risk and money outlay and it's not worth it to them.

When you consider two options: 1. Invest $30k in solar and hope to get your money back in 10 years, or 2. Wisely invest $30k in stocks, bonds, real estate etc.... In 10 years "1" might get you back to even whereas "2" has a pretty good chance of doubling your money or more. So either you broke even or you have $60k in your pocket, most smart investors choose the latter.

[davephan]

There's quite a few opinions here about solar power... Just how cheap is the power in SW Florida? We pay 13 cents per kWH here, and I don't consider electric power cheap at all. Still, I'm not willing to be extremely frugal and live like a hermit in a dark house that is too cold or too hot. Although there are other areas of the country where electric rates are double, even triple.

It appears that the politicians in Florida may have been bought and paid for by the monopoly utilities who don't want solar power in Florida, unless the utilities run the solar power systems and continue to charge their customers forever, with periodic rate hikes. In the article that was posted, it was mentioned that the utilities only pay 2 cents per KWH for the residential solar power when the utilities charge 12 cents per KWH. In Minnesota, the utility pays 13 cents per KWH for residential solar power, the same rate that they charge their customers. The independent solar power companies in Florida are shut out by the politicians that are owned by the monopoly utilities. That's not good for free enterprise and job creation.

That's surprising to me that roofs only last 15 years in Florida, when they last 20 - 30 years here in Minnesota. The financial numbers may be a bit off. A $30K systems really costs about $20K after the Federal tax credit is subtracted. In Minnesota, another $1K per year is taken off over the next ten years. This drops the cost down to about $10K (that reduction may not apply in Florida, depending on the rebates that are available). If a investor in in their retirement years, usually it takes more than 10 years to double their money, given the rule of 72 and the lower yields that are obtained with more conservative investments usually made in the retirement years. Although, you could make a lot more money if you put money into Netflix or some other high yield stock. Netflix stock doubled in value in the past 6 months and is up by 12 times in the past 6 years. I haven't heard about an accelerated panel output reduction over the long term in hot climates. The installation companies I've talked to guarantee the panels for 25 years, even if they are damaged by a storm.

Personally, I haven't been able to pull the trigger on buying solar power, even though we could write the check. We might not be in Minnesota long enough to make the investment pay off (unless we become snowbirds), since we are so fed up with the winters here.

[az99]

I have 10KW of solar on my home in Pa. In Pa. we have net metering. The utility has to act as a bank for your power. Anything you have left in the bank in May is credited at the price they charge for electric. There are also SREC's that you sell back to the electric companies. About $25-$50 per 1,000 KWH that you produce.

With neither of those 2 things available in Fla., it would seem that solar would work out OK if you sized the system to your electric usage or a little less. It would make no sense $ wise to have extra capacity and sell it for $.02 per KWH back to the power company.

[az99]

Has anyone priced a 5KW system lately?

[davephan]

Originally Posted by az99

I have 10KW of solar on my home in Pa. In Pa. we have net metering. The utility has to act as a bank for your power. Anything you have left in the bank in May is credited at the price they charge for electric. There are also SREC's that you sell back to the electric companies. About $25-$50 per 1,000 KWH that you produce.

With neither of those 2 things available in Fla., it would seem that solar would work out OK if you sized the system to your electric usage or a little less. It would make no sense $ wise to have extra capacity and sell it for $.02 per KWH back to the power company.

How much does your electric power cost in PA? Does the utility charge a grid connection fee, if so how much is it? When did you have the system installed and what is your calculated break even time?

[Tominftl]

The sun IS brutal here. I wouldn't expect the panels to last long on a roof. ( high winds also)
If I had a larger piece of property where I could put the panels I would definitely consider it.

[Macgregorsailor51]

Originally Posted by davephan

There's quite a few opinions here about solar power... Just how cheap is the power in SW Florida? We pay 13 cents per kWH here, and I don't consider electric power cheap at all. Still, I'm not willing to be extremely frugal and live like a hermit in a dark house that is too cold or too hot. Although there are other areas of the country where electric rates are double, even triple.
I would have to ask the wife for the bill ( she does the banking : ) But I could reduce our power consumption a lot if I was miserly.. Our Electric runs around $100 month or less or so I hear Thats with The pool pump and 14 ceiling fans that must not have off switches .. Running the A/C whenever we want and the longer we are here the longer it seems to run... Fridge electric stove typical stuff. Lights on in room where no one has been in hours hahaha

It appears that the politicians in Florida may have been bought and paid for by the monopoly utilities who don't want solar power in Florida, unless the utilities run the solar power systems and continue to charge their customers forever, with periodic rate hikes. In the article that was posted, it was mentioned that the utilities only pay 2 cents per KWH for the residential solar power when the utilities charge 12 cents per KWH. We may live in Paradise but its still not perfect and one of our imperfections is spelled Scott
In Minnesota, the utility pays 13 cents per KWH for residential solar power, the same rate that they charge their customers. The independent solar power companies in Florida are shut out by the politicians that are owned by the monopoly utilities. That's not good for free enterprise and job creation.

That's surprising to me that roofs only last 15 years in Florida, when they last 20 - 30 years here in Minnesota. Yep The Sun is brutal down here and the heat adds to it..( you must not live down here at all???) Roofs dont last as long often car paint doesnt last as long screening on our lanais only last a few years.. But Remember we have SUN almost everyday..and compared to Min Na Snow Da ..its tank tops and flip flops every day of the year! The financial numbers may be a bit off. A $30K systems really costs about $20K after the Federal tax credit is subtracted. In Minnesota, another $1K per year is taken off over the next ten years. This drops the cost down to about $10K (that reduction may not apply in Florida, depending on the rebates that are available). If a investor in in their retirement years, usually it takes more than 10 years to double their money, given the rule of 72 and the lower yields that are obtained with more conservative investments usually made in the retirement years. My Personal Passive income is derived at 6- 7- & 9 % and if I need the principle for any reason I can get it or take a lean against it.. its much more liquid than a solar unit Although, you could make a lot more money if you put money into Netflix or some other high yield stock. Netflix stock doubled in value in the past 6 months and is up by 12 times in the past 6 years. I haven't heard about an accelerated panel output reduction over the long term in hot climates. The installation companies I've talked to guarantee the panels for 25 years, even if they are damaged by a storm.

Personally, I haven't been able to pull the trigger on buying solar power, even though we could write the check. Thats true for many of us here as well.

We might not be in Minnesota long enough to make the investment pay off (unless we become snowbirds), since we are so fed up with the winters here.

We too may not be here ooopppsss long enough to make the investment pay off

Come on down the weather is wonderful..

[HarborRat]

Originally Posted by az99

Has anyone priced a 5KW system lately?

I was researching the DIY solar systems and a 5kw is between $5k and $9k depending on options. I tried to get the numbers to work but even buying online and installing myself came to over a 10yr ROI for my small house.

A 5kw system would power my AC in the summer, saving me about $60-80/mo in the summer, but in the winter when the windows and doors are open all day I'm barely using any electricity, so there isn't much savings then.

IF I had a pool with an electric heat pump running all winter I would probably install the system, as my ROI would drop dramatically.

And of course, if the rebates and credits were available here it would change everything as far as ROI. Is there still a federal rebate in FL?

[mktobob]

Yes there is. 30%. Residential Renewable Energy Tax Credit | Department of Energy

[davephan]

Originally Posted by Macgregorsailor51

Come on down the weather is wonderful..

We are planning to take a trip to check out the area. Maybe in August. I've visited Florida six times, about half the time in the Orlando area and half the time in the lower keys, but only during the winters to get away from the rotten winter weather here in Minnesota. I didn't spend much time in SW Florida yet, only driving through the area once. We want to check it out in the summer to see if we can hack the heat and humidity. We're also thinking about Hawaii and southern California, but Florida is much cheaper. Hawaii is more expensive and has it share of problems. California has it's ups and downs too. No state income tax in Florida is a huge plus for us, but that would probably be offset by much more expensive property insurance costs. If we choose to snowbird, we don't have to pay the Minnesota income tax if we snowbird for 6 months plus 1 day. Another huge plus is the boating and fishing in Florida.

We could technically afford to retire today, but I'm holding on for another 51 months because my pension will double by then. We'll also have far fewer bridge years for my wife's health insurance rates since she is 30 months younger than I am. One possible plan is to buy a place in Florida before I retire. After my wife retires next year, then I think I would be able to work remotely for 2 or 3 months during the winter in Florida. The winters are driving me crazy after living my whole life here, but not crazy enough to give up on doubling my pension in 51 months.