[leopard print]

I have a rental property and my tenant is asking if I want to switch over to solar. I've had a few conversations with a rep from SunRun, but I'm still on the fence about switching. Anyone have any experience?

[dreamingat30fps]

I don't have solar but have recently gotten into the solar business. What exactly did you want to know? My first thought is if it's a rental property... doesn't the tenant pay the power bill? If so then what's the benefit to you from a $$ perspective?

Some people are in it for the green aspect, but most people we have dealt with are in it to save $$ on their power bill.

[Pheonix]

We are in the process of installing Solar! It is a lot more expensive for us in Norcal (with Cal Pak Metal Roofs). That being said, the payback will be around 7 years for 7.2kW system.
Going solar is vary greatly due to location, energy costs and consumption!

[stevenc]

I would not do it on a rental property. Electric is the tenants problem, not yours. a 10 year payback on a rental property makes little sense.

[leopard print]

Originally Posted by dreamingat30fps

I don't have solar but have recently gotten into the solar business. What exactly did you want to know? My first thought is if it's a rental property... doesn't the tenant pay the power bill? If so then what's the benefit to you from a $$ perspective?

Some people are in it for the green aspect, but most people we have dealt with are in it to save $$ on their power bill.

Yes, the tenant pays the electric bill. She asked me if I wanted to switch to solar to help her save on her monthly bill. I'm ok with helping her out as long as there are no negative affects to myself financially and the home.

A few questions I had are: Will solar truly add value to the home? Does solar work as promised? What are the cons?

The sales rep I have been speaking with makes it sound too good to be true. He says there will be absolutely no money out of pocket to myself and can only save money for the person occupying the home and paying the electric bill. I asked him what are the options of terminating the contract if solar doesn't provide the energy promised and he says I can have them removed any time if I'm not satisfied and that it would only cost $50-$100 per panel to remove. I asked where that's stated in the proposal and contract and he said that's not something they promote, to which I said I will need that in writing. He was supposed to go to his legal team to get something in writing but instead sent a Google image with vague information. Lastly, he says he's being generous by giving me an $1800 incentive to cover the removal and that he's never done that for any other client. I told him I'd have to think about it, then he immediately upped the incentive to $2000. Not sure what makes me so special (sarcasm) and if he's never done $1800 for any his other clients why he would suddenly up that amount. Seems like a sleazy sales tactic.

[///MPhatic]

I want to do solar so bad (just for the cost savings), but it still seems like it's in its infancy with regards to tech, meaning I don't want to spend $x.xx when in 3 months there will be a more efficient board/parts/etc.

[leopard print]

To clarify, I will not be purchasing the solar system. This will actually be a lease. According to rep, there is no money out of pocket other than paying for the energy it produces. The leasing company gets incentives from the government to cover their costs. Again, sounds too good to be true.

[Bonk!]

I just priced solar for my house (near Boston) and given the 9-year payback it didn't make sense for us. I was warned off leasing the equipment, but I can't recall why TBH. I did ask our realtor about possible impact on the resale value and she said solar is much like a swimming pool - some people love pools whereas others won't touch a house with one.

[Pheonix]

Originally Posted by Bonk!

I just priced solar for my house (near Boston) and given the 9-year payback it didn't make sense for us. I was warned off leasing the equipment, but I can't recall why TBH. I did ask our realtor about possible impact on the resale value and she said solar is much like a swimming pool - some people love pools whereas others won't touch a house with one.

We were in similar situations couple years ago and could not justify the costs!
However, our electricity rates have significantly increased and appear to be continuing to rise. Plus our consumption also gonna up with the addition of the EV so it is finally made sense to go solar.
I don't think Solar Technologies will be significantly improve in the near future (5-10 years).
To the OP, I don't know much about Leasing Solar but most my colleagues whom had done solar told me DO NOT ever lease solar. It is too good to be true!

[tdott]

Originally Posted by leopard print

The sales rep I have been speaking with makes it sound too good to be true. He says there will be absolutely no money out of pocket to myself and can only save money for the person occupying the home and paying the electric bill. .

Keep in mind they make a lot of money off the commission. Those no money down systems, you usually end up paying 2x what it cost if you paid to install the system yourself, take all the rebates and then consider the savings.

[vreihen16]

I have heard third-hand that houses with leased/contracted solar packages are more difficult to sell, and may go for a lesser price just because buyers don't want to assume someone else's contract that they cannot break.....

[leopard print]

Originally Posted by ///MPhatic

I want to do solar so bad (just for the cost savings), but it still seems like it's in its infancy with regards to tech, meaning I don't want to spend $x.xx when in 3 months there will be a more efficient board/parts/etc.

This was one of his selling points that did make a little sense. If new technology came out, then we could remove the panels at little to no cost and add in the new ones in. But, he has yet to give me anything in writing that I would be able to terminate the contract early. I'm not going to take his word for it or a Google screen shot.

[leopard print]

Thanks for all the feedback, everyone.

I was leaning towards not doing the lease. Everyone's input just helped me confirm that that's the correct decision for now.

[TheWatchGuy]

leasing is a scam. you pay more for the lease than you save in energy costs. And if you go to sell the house, good luck.

my neighbors had solar, on a lease, and they had a hell of a time selling their house due to it. the company had been bought by another company, paperwork was missing incomplete, leasing company was slow to respond and they had 3 sales fall through before they eventually worked out a deal to buy out the lease and then were able to sell the house, at a reduced price now due to the amount of time it'd been on the market.

if youre gonna buy it for the tenant, thats nice of you, but you it wont add value to your house. If anything, a lot of buyers look at it as an increase in maintenance costs and as a negative value.

[OkieSnuffBox]

Yep, I've looked into it before here in OK. But energy is already cheap here and OG&E already gets a big chunk from wind power.

Basically the only way it makes sense here, is a 20-year loan that basically equals what you would pay in electricity. And then there is what the TheWatchGuy mentioned with an additional lien on the house causing issues.

And after talking to my real estate agents they said in this part of the country, it doesn't really add any value to the home.

[2000cs]

Cheaper to insulate and caulk, then upgrade SEER on A/C, then solar. Absent incentives and tax credits, which can sway it the other way. But still, isn’t it better to reduce usage and then be able to size a smaller solar system?

[carseatsm5]

Installed solar five years ago and it has now paid for itself (was $10K net cost to me and has saved me about $2K/yr). At the time it was a no brainer given large tax credit (only if you bought). Panels last a long time so it’s gravy from here.

Economics of the systems change a lot based on tax incentives and your power company’s rate regime. I don’t think new panels today would be as compelling financially here in CA.

Couple other comments from me. The maintenance is extremely minimal so that shouldn’t deter anyone. Also I understand the technology/obsolescence risk to be pretty low. These panels are a commodity product that haven’t changed a lot for a long time.

[///MPhatic]

Originally Posted by carseatsm5

Installed solar five years ago and it has now paid for itself (was $10K net cost to me and has saved me about $2K/yr). At the time it was a no brainer given large tax credit (only if you bought). Panels last a long time so it’s gravy from here.

Economics of the systems change a lot based on tax incentives and your power company’s rate regime. I don’t think new panels today would be as compelling financially here in CA.

Couple other comments from me. The maintenance is extremely minimal so that shouldn’t deter anyone. Also I understand the technology/obsolescence risk to be pretty low. These panels are a commodity product that haven’t changed a lot for a long time.

Well that's good to hear.

I guess the next time there is a huge tax credit or some other incentive I'll just pay cash for them. My electric bill isn't terrible, but the huge selling point of these panels is historically how much it has gone up, and will rise in the near future.

[WER2XU]

I have had Solar here in Boston for almost two years, I have not had an electric bill in that time, plus I get anywhere from 50 bucks in low light months to 200 bucks in high light months in cash....I am running a credit on my electricity of over 500 bucks...my only regret is not getting battery back-up.

[Maestro]

Here is the part no one is talking about and this coming from an engineer who worked in the electronic industry.

Panel life is only about 20 to 25 yrs, which means its efficiency drops by 50% the power output in way less than in the beginning of the life when the load calculations are done to size the panels for your home. Yes the panel may last longer but will not get much power out of them especially when it is over cast and low sun. This is important to know if you are buying the panels verse renting/leasing. You have to look carefully at the agreement on how you are reimbursed for the power you use verse what it sold to the grid and if it is the same every year from day one to 20 yrs later. I will tell you there is nothing on the horizon to make panel more efficient or last longer. It is just the physics and chemistry behind semiconducting technologies.

If you do not own the panels this does not apply to you. When the panel are no longer producing enough power and you have to depose of them and depending on where you live Panels are consider hazardous waste, because the solar cell contain heavy metals and can not be recycles or put in a land fill and you may have to pay lots of money to properly depose of them. This information is just coming to light since no one thought about any of these when they start first installing them 20+ years ago.

Here is the other down side depending on the install method on your roof, some of the them require multiply mounting points on your roof and if they are not properly done you may develop leaks over time. Some of these install company have not been around a long time and it may take 10+ years for leaks to develop the company who installed is long gone and you have to deal with the problems.

Next most roofs have a life of 15 to 20 yrs which means that if you put the panels on an old roof and when comes time to replace the roof you have to pay to remove the panels and then reinstall which could add thousands to your roof replacement and the new roof most likely will not be guaranteed. For this reason I would not place them on the roof and most roof do not face directly south so you power out is not the max it could be if the roof faced south.

If you are installing solar since you think it is doing something for the environment think again, everything being said today is not 100% accurate. Trust me I was serious considering putting panel on my new property in which we are building a retirement home. Was doing it to offset of some of what I pull from the grid, second I live in area where weather knocks out power and it would be nice to have something other than a generator when those events happen. I have enough property to put the panels on the ground, but since this is our retirement home I did not want to have to deal with replacing panel 20 yrs out. The most knowledgeable company around me who does solar only sells they will not rent/lease and they been around 10yrs all the rental companies seem to come and go. I still weighing whether to put them in, but today I buy my power from the company on the east coast who operates most all the nuclear power plants and so my power comes from Nuclear and one of their power pants is 20 miles away.

Here is some interesting reading and this should factor into your decisions as well. This information is not new, I have been and Electrical Engineer for a long time and the industry has know about this from the beginning. Also if you are considering a batteries as part of the install those only last 5 to 7 yrs and they too can not be recycled and you could be stuck unable to dispose of them.

https://environmentalprogress.org/bi...r-waste-crisis

https://interestingengineering.com/r...ir-toxic-waste

https://www.forbes.com/sites/michael...h=2931fd385fe5

[OkieSnuffBox]

Originally Posted by WER2XU

I have had Solar here in Boston for almost two years, I have not had an electric bill in that time, plus I get anywhere from 50 bucks in low light months to 200 bucks in high light months in cash....I am running a credit on my electricity of over 500 bucks...my only regret is not getting battery back-up.

See that's another strike against it here, the electric companies won't pay for excess production that goes back into the grid. You just have to live with your excess capacity feeding the grid for free.

[Pheonix]

Originally Posted by Maestro

Here is the part no one is talking about and this coming from an engineer who worked in the electronic industry.

Panel life is only about 20 to 25 yrs, which means its efficiency drops by 50% the power output in way less than in the beginning of the life when the load calculations are done to size the panels for your home. Yes the panel may last longer but will not get much power out of them especially when it is over cast and low sun. This is important to know if you are buying the panels verse renting/leasing. You have to look carefully at the agreement on how you are reimbursed for the power you use verse what it sold to the grid and if it is the same every year from day one to 20 yrs later. I will tell you there is nothing on the horizon to make panel more efficient or last longer. It is just the physics and chemistry behind semiconducting technologies.

If you do not own the panels this does not apply to you. When the panel are no longer producing enough power and you have to depose of them and depending on where you live Panels are consider hazardous waste, because the solar cell contain heavy metals and can not be recycles or put in a land fill and you may have to pay lots of money to properly depose of them. This information is just coming to light since no one thought about any of these when they start first installing them 20+ years ago.

Here is the other down side depending on the install method on your roof, some of the them require multiply mounting points on your roof and if they are not properly done you may develop leaks over time. Some of these install company have not been around a long time and it may take 10+ years for leaks to develop the company who installed is long gone and you have to deal with the problems.

Next most roofs have a life of 15 to 20 yrs which means that if you put the panels on an old roof and when comes time to replace the roof you have to pay to remove the panels and then reinstall which could add thousands to your roof replacement and the new roof most likely will not be guaranteed. For this reason I would not place them on the roof and most roof do not face directly south so you power out is not the max it could be if the roof faced south.

If you are installing solar since you think it is doing something for the environment think again, everything being said today is not 100% accurate. Trust me I was serious considering putting panel on my new property in which we are building a retirement home. Was doing it to offset of some of what I pull from the grid, second I live in area where weather knocks out power and it would be nice to have something other than a generator when those events happen. I have enough property to put the panels on the ground, but since this is our retirement home I did not want to have to deal with replacing panel 20 yrs out. The most knowledgeable company around me who does solar only sells they will not rent/lease and they been around 10yrs all the rental companies seem to come and go. I still weighing whether to put them in, but today I buy my power from the company on the east coast who operates most all the nuclear power plants and so my power comes from Nuclear and one of their power pants is 20 miles away.

Here is some interesting reading and this should factor into your decisions as well. This information is not new, I have been and Electrical Engineer for a long time and the industry has know about this from the beginning. Also if you are considering a batteries as part of the install those only last 5 to 7 yrs and they too can not be recycled and you could be stuck unable to dispose of them.

https://environmentalprogress.org/bi...r-waste-crisis

https://interestingengineering.com/r...ir-toxic-waste

https://www.forbes.com/sites/michael...h=2931fd385fe5

Lot of good points and information here!
However, you are wrong about the life and efficiency of the panels! Most of the reputable Solar panels makers warranty annual degradation of 0.25%-0.50% per year and power production of 85%-92% after 25 years so the life of the panels are much longer than 25 years.