I'm a relatively eco-conscious person. I'm all about the green economy, I save packing materials like a World War II grandma and I have logged time in the sustainable energy industry. I understand that renewables come with their own challenges and opportunities.
"Home solar is one of the only power plants that will fit on your roof, generate electricity without causing pollution and use fuel that is free and abundant for everyone," said my former colleague Gene Rodrigues, who is now the assistant secretary for electricity for the U.S. Department of Energy.
Sunlight is certainly free, and for many, solar power makes sense. But after my run-in with a big solar company, I was horrified to think it might all be a scam. In fact, attorneys general in multiple states have their hands full with deceptive fraud complaints against companies that allegedly prey on people by selling expensive plans with high interest rates, or inappropriately sizing systems. (The Better Business Bureau has a scam tracker that can be a rabbit hole of information but is a good way to gauge if a company is legitimate.)
An indecent proposal
My husband, daughter and I moved into a Burbank, Calif., house that came with a logic-defying floor plan, a generous orange tree and a 20-year lease on a rooftop solar array that can produce 2.65 kilowatts of power from the sun — the equivalent amount of electricity, roughly, to run a dishwasher and possibly a blender at the same time. The fee to the solar company for this offset, which saves some money on our electricity bill but did not zero it out by any means, was about $50, plus a 3% increase year-over-year. This will culminate in an $80.75 monthly bill for the last year of the lease, 2035.
I was concerned about getting into a long-term relationship with a company so inept it nearly tanked the sale of our property by delaying the transfer of the contract.
"Twenty-year deals can bug future buyers, but lower bills may still sway them," said Crystal Olenbush, an Austin real estate agent. A Zillow study shows that homes with solar sell for more.
Still, we were curious about adding more solar power. "Let's take a look at your system and see what we can do," said our new solar salesman, a charming friend of a friend. He analyzed our energy load and figured we would need nine or 10 more panels to optimize our system and zero out our electric bill, which hovered at an average of $137 a month.
Our new system would have added $86 a month to the existing amount — and then escalate 3% a year to $172 a month by 2049. It's a lot of math, but after some migraine-inducing number-crunching, I realized that over 10 years, we would be paying $5,000 to $7,000 more than if we had just paid the electric company — even factoring in rate hikes, which are unpredictable at best.
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So, while I would not call the sales guy a scammer by any means — he was just doing his job and offering the best option from his company — we appreciated all his effort but ultimately did not sign.
Is solar right for you?
Every home is a different scenario: energy usage, electricity costs and access to abundant and optimized sunlight all factor in the decision to go solar. In general, leasing usually has low to no upfront costs, and you will pay your solar provider monthly while saving on your electricity bill. However, you will get a better return on your investment by paying cash to buy a solar system outright (or taking a loan at a low-interest rate — watch out for hidden fees and balloon payments at the end of the contract).
If you purchase your panels, you can also benefit from federal tax incentives. Last year's Inflation Reduction Act invests in clean energy solutions, especially in lower-income households and tribal lands. For example, a new tax credit defrays 30% of the costs of installing rooftop solar and battery storage.
Ben Delman is a spokesperson for Solar United Neighbors, a nonprofit that enables communities to buy solar panels in bulk. The group is also a great resource for the solar-curious. "We're eager to chat with folks and walk them through any questions that they have so they feel confident," he said.
The Database of State Incentives is another place to find rebates and credits.
What to ask
When you're looking for a contractor to install your solar, as with any major purchase, double down on research, get at least three bids and ask your friends and neighbors for referrals.
Look at the calculations for how much the proposed system is poised to generate and how long it will take for your investment to pay you back based on your energy needs and past bills, keeping in mind escalating fees for a solar power purchase agreement (PPA) and rising energy costs, which are not predictable.
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Delman suggests asking each candidate for your business the following:
- How many systems have they installed?
- What experience do they have with the kind of roof you have? (Slate, for example, is notoriously more difficult.)
- Can they provide customer references?
- Will there be a NABCEP-certified installer working as part of the installation crew?
Then do your own math and become an expert on the fine print, including interest rates and surprise costs and fees. Will it meet or beat your current electric bill? Once you get into a contract, it's hard to get out of it, even if there's a failure to perform on the company's part — an alarming number go out of business, and then it's even harder to file a claim.
When you don't have a roof for solar
Renting? Can't install solar for whatever reason? Some states allow people to buy or lease a share of an offsite solar array and earn credits on their electric bill.
If your end goal is to save on your electric bill, consider using more efficient appliances, running full loads only and taking advantage of timed rates (charging your car when the rates are lower, for example). As Rodrigues often reminded me, the cheapest (and cleanest) kilowatt is the one you never use.
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