What To Know Before Installation

So many people are excited at the prospect of enjoying lower electricity bills and helping the environment by installing solar panels on their home. However, before you decide to invest in solar power, there are a number of things that you need to know to make sure the investment is worthwhile.

1. Understand Your Utility Rates

Depending on where you live, utilities offer different rate tiers for electricity usage with a different formula depending on usage. Those that use more energy tend to pay a higher rate, but when you move to solar, you are not using as much electricity from the grid and so your rate goes down. The lesson here is that the higher rate you pay in energy the better the return you will see when going solar.

2. Rebates v. Batteries

Many times a solar installer will want to sell you a battery with your solar system so that any electricity that your system produces that you do not use during the day, you can draw from at night. However, if you are connected to the grid, you will still be able to pull energy from the grid even when your solar system is not working (such as at night). In fact, you will not qualify for state solar rebates if your solar system is NOT connected to the grid. In the end, you probably do not have to worry about the battery so much.

3. Understand Your Electric Usage

Critical to making sure that you purchase the right size solar system for your home is understanding where you expect your energy usage to be going forward. If you are going to have a family or will be needed more power down the road, make sure your solar installer knows this so they can make sure they quote you on the right size producing system.

4. Property Tax Assessments

Often re-assessments of your property value are done when you refinance your home or when you perform a significant home improvement. You need to understand whether installing a solar system on your home will trigger a re-assessment and whether the value of a solar system is exempt from property taxes. In most states, it is.

5. Understand and Protect Your Investment

Make sure you understand the different warranties (and maintenance requirements) that apply to each of the components of your solar system in the event that you have a problem with your system. For a basic outline of the typical warranties, click here. In addition, make sure that you update your homeowner’s insurance to include your solar system under your policy in the case of damage from a natural disaster or fire.

6. Know Your Roof

Installation costs can vary depending on what type of roof that you have. Installing a solar system on heavy tile will be much more expensive and affect the economics of your investment than if you installed the same system on a flat tar roof. If your roof is made out of a difficult or unique material, be prepared to pay between 10-25% more on your installation costs than normal and make sure you understand how this increase will affect your payback period.