If you’re anything like me, you’re always getting calls from people trying to sell you solar panels and telling you what a great investment they are. I’m also always hearing people complain about solar salesmen knocking on their door with these high-pressure sales tactics. But that, in and of itself, doesn’t mean solar panels are a bad idea.

In fact, they COULD be a good investment for many homeowners. I’ll be spending just a few minutes today addressing why solar panels MIGHT be worth it here in Florida, and then, I’ll be addressing why solar panels might NOT be worth it for you. So, read until the end as the WHY NOT, may surprise you.

1. First, let’s review some of the reasons why solar panels are so popular along with the benefits of why solar panels MAY BE worth it. The most common reason most people have solar panels installed is to save money. Installing solar panels is supposed to lower the consumer’s electric bills, and I believe this is usually the case. Some solar users even sell back electric to the energy company. My experience has been that homeowners usually lower their total energy bills, even when considering the cost of the panels, which we’ll come to in a bit.
2. The next reason solar panels may be worth it is simple energy independence. Having solar panels can make you less reliant upon others, like the monopolistic energy company. If you just want to get off the grid, then solar panels are, in my mind, the first step in making that happen.
3. Another reason so many turn to solar energy is that solar panels can be a great source of clean energy. Some people are willing to pay big bucks for this type of thing, but I don’t know that you always have to pay big bucks to have solar panels installed on your roof, but you’ll need to do your research to ensure you don’t get taken for a ride.
4. Next, Florida offers all sorts tax incentives that can offset your overall energy expense, although these incentives are sometimes not realized by the owner if the solar panels are leased or financed. As of this recording, Florida provides a property tax exemption for solar panels and there’s no sales tax on the purchase of these panels. While I don’t believe Florida residents are able to take advantage of Solar Renewable Energy Credits, or SRECS, which is an incentive available to many other states, there are still plenty of state, and even local incentives to help offset the costs of solar energy, especially if you aren’t leasing or financing.

Of course, determining if solar panels are worth it for YOU depends on many other factors, including your energy usage and exposure to the sun, and many others. However…all that glitters isn’t always gold (I think that was a phrase my grandma used), and there ARE some factors to consider as we look at the OTHER SIDE, some of which may give you pause before running out and emptying your retirement savings, so let’s take a look at a few of those.

1. The first obstacle when determining if solar panels are worth it is usually the cost. The cost of solar panels can vary widely, but most of the homeowners that I’ve spoken to spent somewhere between $30k to $50k, although I spoke with a seller yesterday that’s fighting over a system that he paid over $75,000 for. Yes, after tax credits you could end up with a net savings of a good bit of dough, although the one I just referred to was a disabled vet, so he wasn’t able to capture one cent of the tax credit.
2. It’s important to note that the power company isn’t going to just vanish, they’re still going to get $30 or $40 each and every month. That’s not a lot of money, but it DOES add up when putting it all together.
3. The salesman selling these solar panels offer all sorts of options to purchase. Of course, cash is almost always going to be the least expensive option, but you can also lease or finance them. Sounds great, right? Leasing solar panels means you NEVER own the panels, and that brings all sorts of issues, and financing them gives you the expense of the interest to borrow that money.
4. One solar salesman I spoke to said that solar panels typically take between 10 and 15 years to get your money back, but that’s based on a cash sale, so I can only imagine how long it would take with their financing. Leasing solar panels is, in my mind, the most perilous option when installing solar panels, but I could probably spend another hour addressing the problems there. So, these things are expensive, but they CAN still be worth it as long as you’re in your home long enough to get that return back.
5. Speaking of being in your home long enough, this is what I consider the GREATEST PROBLEM when determining if solar panels are worth it. So…here’s the scenario:  Let’s start with the CASH scenario, the EASIEST one to deal with when selling your home. You have solar panels installed and things are going great. You’re breaking even, or who knows? Maybe you’re MAKING MONEY each and every month from your solar panels. Then, 5 years later you WANT or NEED to sell your home.Well, it’s very likely that you are NOT going to recoup that money that you spent on those solar panels. It’s likely that the market will NOT pay you back for that $30,000 investment on top of your roof. Yes, you could potentially have those panels uninstalled and reinstalled on your new home, but that’s a major expense if solar panels even work at your new location.
6. But what if you didn’t pay cash? Well, the new buyer that wants your home will now ALSO have to qualify for the loan or lease on those solar panels! Most buyers looking at homes are looking at the top end of their budget, and many WILL NOT qualify for the additional expense of those solar panels. I’ve been selling homes here in Central Florida for many years, so I can tell you from experience that selling homes with solar panels has an entirely new level of problems.I’ve seen and heard of many home sellers that have lost thousands or tens of thousands of dollars because they put solar panels on their homes. As such, I’m encouraging my friends and family to avoid installing solar panels unless they’re paying cash AND they’re CERTAIN they’ll be in that home for many years to come. So, am I saying that solar panels are the enemy? Absolutely not. Solar panels COULD be worth it. What I’m saying is that if you’re putting on solar panels, you should be betting that you won’t be moving from your home for the next 20 or 30 years, which is quite rare here in Florida these days.
7. Insurance can be an issue when it comes to solar panels, too. Insurance companies may not cover roofs damaged by solar panels and your rates could also rise because of solar panels. So, if you’re going to roll the dice here, you’d better be certain you’ve got a reputable solar company to install these panels that’s still in business when you need them many years into the future.It’s also important to note that if you need to replace your roof, which seems like every 10 to 12 years these days BECAUSE of that insurance, you’ll have the added expense of having the solar company come back out to uninstall, and reinstall them, which isn’t cheap!

All expenses like leasing fees, interest, maintenance, and moving solar panels should all be considered when determining if solar panels are worth it for you. If you’re considering selling or buying a home with or without solar panels, give me a call!

Published on January 29. 2024 / no comments.