There are some people that like to say, “solar is a scam!” any chance they get. What could possibly make them believe this? Some customers can be left in the dark when a solar company isn’t completely honest or upfront with them. Solar power itself is greatly beneficial to have, there are thousands of homes & businesses going solar every day, they surely wouldn’t do this if solar was actually a scam…
The first problem could have been they were never made aware of the several available options to pay for solar: leases, PPAs (power purchase agreements), and purchasing the system themselves.
So which option is best for me when deciding to go solar? The best choice is different for every home. However, the advantages to owning your solar panel system when purchased, are typically the most beneficial. When a company wants to make money with no regard to actually helping the customer, they keep most of this info hush hush.
This leads to customers signing agreements to lease or PPA; when neither one is in their best interest. With these options, you don’t own the system, they do. They sell you electricity, or use of the system, at a lower rate than the utility company would, but they get the benefits of ownership. With solar incentives, only the owner of the system can claim any tax credits or rebates available.
! THESE OPTIONS SHOULD ONLY BE USED IN SPECIFIC SITUATIONS !
Now let’s look at how purchasing the system can benefit you. When you have ownership of your solar panels YOU can claim any available incentives for going solar. So, with the federal ITC covering 26% of system cost & some utility companies giving rebates, that is a lot of money you could miss out on!
Additionally, many solar companies will offer a discount if buying a system in cash. Not everyone can outright buy a solar panel system, so the majority of owners will use a financial institution specific to solar energy. These typically are low interest loans that anyone can be approved for to get their system installed with ZERO cost upfront! Financing a solar panel system is only part of the equation when it comes to getting solar done right.
Many situations where solar was a “scam” came from misleading information or improper system design. Companies or salespeople might promise that going solar will completely eliminate their electric bill. If the home is still grid connected, there will almost always be a “connection fee” from the utility company. Even with this small service charge solar can still save you a lot of money, if the system has been designed correctly.
When a system is presented to a customer, they should be shown how much electricity their home uses on average per year. If the system won’t offset 100% of this usage, then you will still draw electricity from the grid, resulting in a bill from your utility company.
To learn more about offset and how it’s determined CLICK HERE where we go into more detail discussing exactly what to keep in mind when getting your solar panel system designed.