Solar panels

[DDrake]

Fellow mustachians,

I am kicking around getting solar panels put on my roof. 

Basically it works out to 11k out of pocket after the federal credit, then we get a roughly $450 a year payment from the utility based on production, plus net metering.  According to the proposal we would generate around 4800 kwhs a year. Using their rates of energy price increases I came up with the attached analysis. 

Now my question for you! What am I missing here.  I did not include a replacement converter or any maintenance costs, (is there much maintenance)?  Has any one seen if you can recover a bit of the cost on resale? Any other thoughts?

Thanks in advance,
Dan

[tj]

My understanding was that it's harder to sell a house with solar panels and that you should only invest in it if you will stay where you are for the long term.

I'd assume that at some point there would be some repair/replacement costs, but maybe it depends on your climate.

[Another Reader]

$3.15 per watt is the going rate for the lowest priced systems in the San Jose area.  Owned systems here may add a little value.  Usually a lot less than the cost.  Outside of expensive, trendy areas, they don't add much if any value.  Leased panels can make your house difficult to sell, because the lease payments are factored into the lender's calculation of the buyer's obligations and reduce the amount that can be borrowed.  Pretty much excludes the low down payment folks that are stretching to buy. 

If you are still interested, look carefully at the net metering agreement and its' remaining length.  These are sunset provisions in many of those agreements.  Also look at time of use billing and net metering.  You want to sell when rates peak and buy when they are low.  You need to make a reasonable estimate of how much you can sell back during various times of the day and what the price will be.

Also look at the guarantees and the maintenance arrangement.  Many of the low end installers have not been in business very long and may not be in business when the system needs work.

[DDrake]

Interesting points here.  Does the rate the utility charges fluctuate during the day? I assumed it was fixed, maybe that's not correct?

I'll ask about the net metering agreement length. Another good idea.

Any body else?
Dan

[gooki]

$3.15 per watt is the going rate for the lowest priced systems in the San Jose area.

Why are Americans being charged up the ass on solar installs?

My 4.56kw system is costing $1.63 per kw installed, with no subsidies at all, full certification, and meter upgrade.