We went LIVE!!!

If you have been following our solar story you know that we signed our solar agreement last year. However, the process began mid 2017 with energy assessments with DTE and Consumers. To be quick I will add a timeline below.

July-August 2017 - energy assessments
September-November 2017 - research solar energy and get solar quotes
November 21, 2017 - sign purchase agreement
Late November 2017 - DTE interconnection application mailed by Yellowlite / city permits and fees filed
Late December 2017 - city permits finalized
January 5, 2018 - DTE interconnection application complete via internet (no longer accept mail applications)
January 10, 2018 - DTE install approval confirmed
January 31, 2018 - install begins
February 1, 2018 - install complete
February 7, 2018 - electrical inspection
February 8, 2018 - final photos submitted to DTE
February 12, 201i - interconnection application approved to schedule go live
February 23, 2018 - system FINALLY is LIVE!!!

It has been a long process but we are happy we installed our system! The attached photos are from the first day and the very start of the energy production. It was a cloudy and rainy day. The system produced roughly 9 KWh of power. It was a slow day for production but we were happy to finally have our system be live. Because the system was up in February our first loan payment will be in April and it coincides with our first DTE bill having a whole month of green energy! Despite the deferred payment until April we have been maling a monthly solar loan payment since December. April will be the first official loan payment after the 4 month deferrment expires. I have been getting solar loan statements showing payments applied on the system. At signing a 10% down payment was applied, at install another 60% payment was applied and once inspections were passed the final 30% payment was made. This allows for fair distribution of charges to go along with the lengthy install time frame.

I will try to post frequent updates to solar production and I have a few other blog posts regarding this whole process to post. Things have been busy but I hope to do at least two blogs each month.

Warranties, lifetime and maintenance of solar panels

When making a solar investment it is important to research your options and purchase panels with a warranty that meets your needs. When looking at the solar panel systems, warranty was part of the decision for us. The panels we purchased from Silfab Solar - SLA-310M SLA-M come with a 25 year workmanship warranty. In particular the product warranty is 12 years and the Linear Power Performance guarantee is 25 years. This means that the product will be free from defects for 12 years and the power is guaranteed to perform for 25 years or panels will be replaced. The inverter we purchased is from Solar Edge Technologies and this also has a 12 year warranty. The overall labor warranty for the system is 10 years so all parts and labor needed is covered for 10 years. Then for 2 years parts are covered but labor to install is not. By year 11 the solar loan will be paid off and power production will drastically reduce monthly bills. It is at this point any repairs or parts will be out of pocket.

There are more extensive warranties you can get, some even last for 25 years. To get longer warranties will either cost more, or will need to be compensated for with less expensive or efficient components. A system that came with a 25 year all around warranty including a 25 year labor warranty cost almost double per KW than the system we purchased. With the less expensive system we got we were able to get higher wattage and more efficient mid range panels than the system with a lifetime warranty. We estimate that after 12 years for our system any repair costs can be managed since there will no longer be a solar loan payment to make. Personally, I feel any needed parts or labor for the system during the latter half of the expected life will be less expensive than paying for the system in full again. Also my excel sheet (I still need to post this) estimates roughly 40k in savings over 25 years with a modest 2% cost of electric increase each year. However, only time will tell if our choice was the right one.

In regards to maintenance, overall solar systems are fairly maintenance free, especially in locations that get frequent rain. If a drop in production is noticed then a power washing may be needed. In the 1.5 months we have been live with solar there has not been any maintenance required. However, we did have one panel go out due to a bad optimizer but that was ordered and replaced.

Our solar journey has just begun and we still have plenty to learn... We still have yet to see our first DTE bill with our solar panels in service but early estimates show that we are currently producing more than our households average daily usage over the last 12 months. I will try to post again soon and cover how our production has been overall and compare production on snowy, cloudy, rainy and sunny days.

Solar Loans

photo courtesy of solarcity.com

A solar panel system is not only good for the environment but also an investment. There are many ways to get your home into a solar system. The first being a cash purchase, the second is utilizing a loan, the third is a solar lease. The video I've attached shows loan options that allow home owners to purchase solar panels. Many of these options can be zero down or a variable down payment with monthly payments thereafter. Once the size and cost of the solar system is determined then purchasing options should be reviewed to determine what is best. If you can pay cash great but if not, a home equity loan or a low interest unsecured loan may be an option. Unsecured loan rates can be as high as 10% APR but with a good credit score can go as low as 1% APR, if you qualify. Oftentimes a secured loan will be the best option if the applicants credit score is so-so. This will allow for a lower interest rate than an unsecured loan. The loan terms can also be flexible. The useful life span of solar panels ranges from 20-30 years and panels can continue to produce energy beyond that. 

We decided to go with a low interest unsecured loan. This option was less hassle and, for us, offered a comparable interest rate to a home equity loan. Because our purchase qualified for the Green Energy credit on our Federal Tax Return the loan was split into a 70% / 30% loan. The 30% portion is no payment, no interest for a year. After one year this loan is subject to the regular loan terms if not paid in full. This allows for tax returns to be filed so that the loan can be paid off. The 70% loan is termed for 12 years but broken into 139 payments to give 4 months deferment. This is because a solar system can take several months to install due to various reasons. Some delays we experienced DTE permits, weather, DTE communication delays and finally DTE delays going live. Ultimately our loan payment & electric will be roughly what we paid for just our electric because we chose a shorter loan term. Our savings will increase as the cost of electric increases. The faster this happens the more we save. In Michigan electric costs have risen pretty consistently at just under 5% every year since 2012. I normally post blogs from my phone but I will try to see if I can post the excel calculator I created from my computer. It allows you to plug in specific information, including the electric rates and determine savings due to varying factors over the useful life of a solar panel system. 

There are differences between solar loans and leases the primary being you own the panels you have a loan on. With a solar lease you do not own the equipment and it will eventually go back to the leasing company. Also a purchase will increase the value of your home by up to 10 times the annual utility savings. A lease will add value to a home but not near as much as a system that is owned.

So check out this helpful video regarding solar purchases. Also I cannot encourage you enough to check out the website www.energysage.com, Again I highly recommed it. Energy Sage helped us so much on our solar panel journey.