With so many Arizona homeowners choosing to install solar electric systems, we’ve also seen the rise of many misconceptions about how solar electric systems will work for consumers. In this first installment of a multi-part series, we’re sharing some of the mistaken ideas we’ve heard, focusing on the quotation process and financial aspects of solar installation.
Myth: Solar Doesn’t Work
We tend to hear this one from online trolls, and we’ll dispense with it quickly. Solar works! It produces energy when the sun is shining, that can be used in your home, or sent back to your utility for a credit if you don’t need the energy. For more information, see how energy flows in your solar home.
Net Zero Solar has installed hundreds of solar electric systems for folks throughout southern Arizona. If you have any doubt that the systems we install work, check out our reviews on Google or other platforms.
Myth: Solar Won’t Save You Money
Skeptics may claim that solar is more expensive than it’s worth. There is no question that solar is a bit expensive to install in the beginning. But that spending on up-front capital costs is what leads to savings in the long run. With solar, you are buying an appliance that saves you money on your electricity bills each month. That monthly savings allows you to recoup your initial investment.
If you use solar electricity as it is generated, solar reduces the amount of electricity you purchase from your utility, saving you each month on your electric bill. If you produce more energy than you are using at any given time, that energy is sent back to the utility grid for a credit.
The bottom line: Solar saves you money, but you’ll want to carefully evaluate solar quotes to understand their savings projections. For more information, see our post Is Your Arizona Solar Installer Telling You the Whole Story?
Myth: Solar Is Free
Some shady solar marketing and installation companies claim that “solar is free.” When we consider the significant equipment and installation costs for solar, we should be really skeptical of this claim. Companies that promise free solar typically are pushing solar leases or other financial arrangements that are good for the solar companies and financing companies, but not for consumers. Some financing providers require solar installers to embed extra “dealer fees” in the installation costs, costing you more overall.
Financing solar can be a reasonable option, but the key is transparency. Ask these companies to clearly disclose the total costs of the installation, including any finance charge. You’ll certainly want to get multiple quotes for solar, and weigh your financing options from different sources.
We recommend working with a local credit union to finance your solar electric system. We partner with Tucson Old Pueblo Credit Union. TOPCU provides great rates, quality local service, and is transparent about the cost of the loans.
Myth: The Cost of Solar is Based on the Size of My Home
It’s impossible to know how much solar you need based on the size of a home. This is because electricity use varies widely, even in homes of similar size. Instead, installers should size a solar electric system for use based on your hourly or monthly electricity use. This process includes getting as much data as possible about your energy use from your electric utility, then carefully using advanced modeling software to determine the best system for your priorities and budget.
Myth: There are Limited-Time Utility Incentives and Rebates
Misleading social media ads and door-knocking salespeople often try to push the idea that you have to act today, or you’ll miss out. Don’t rush to a decision. Solar is amazing, but you’re making a decision about products that will last for 25+ years, so it’s better to carefully consider your options.
Although there are periodic changes in utility rates and tax credits, good installers will be aware of when these changes are going to happen, and can explain them to you. The Federal tax credit is 26% of system cost for systems installed in 2020, but will step down to 22% for systems installed in 2021. The Arizona tax credit will remain the same. Utility rates will periodically change—ask your solar installer for current information.
Beyond the two tax credits, there are no additional incentives, and there have not been utility rebates on solar installations for several years.
Myth: Solar Leases Make Sense for My Home
Solar leases may save you a small amount of money each month, but most of the benefits of the system go to the financing company, not you. Instead, consider financing your system with an appropriate solar loan. For business owners and non-profits, PPAs or leases may make more sense, but each situation is unique.
Myth: A Solar Electric System Will Raise My Property Taxes
Nope! Arizona has a property tax exemption for purchased solar electric systems. For more information, see this information from DSIRE.
Myth: Solar Won’t Add Value to My Home
Wrong! Several studies have found that owned systems do increase the value of your home. For example, Zillow’s study found that for a median-value home, solar added 4.1% to the selling price.
Two studies from Berkeley Labs also show significant value from owned solar electric systems, Selling Into the Sun, and Appraising Into the Sun. For homeowners to gain this value when selling their homes, it’s important that sellers use a real estate agent who can effectively market the value of a solar electric system or other green features.
Myth: A Good Solar Quote Can Be Done Over the Phone or Email
Some installers pretend that they can do a comprehensive site assessment via phone and satellite imagery. But your home is unique, and if your installer doesn’t evaluate your existing roof, structure, and electrical infrastructure in detail, there’s a good chance it will lead to expensive change orders during your solar installation.
We’ve been installing solar for over a decade. When Brian or Chad come out to talk to you about your solar options, they will also carefully check the roof for current condition, and make a plan for where the solar modules and microinverters will go, considering obstacles such as vents, piping, or air conditioners. They’ll take a look at your electrical panel, and make sure that there’s a cost-effective way to connect the solar electric system. For most of our installations, you’ll see us for one visit before installation. For a few more complex systems, we may need to make a second visit to confirm details.
Myth: Asking a Contractor to Price Match Can Get Me a Good Deal
Some solar installers play games on price. They don’t respect their customers, and will price their systems as high as possible, based on your perceived ability to pay, or will push you toward expensive financing options. Often they give you a high price initially, then will match a lower price from another vendor later, making you feel like you got a deal.
We do not believe these are ethical business practices. We will provide you with a fair price in the first place, designed to allow us to provide you with high quality products, careful installation, and great customer support for your system for years to come.
Other Solar Myths?
We’re just getting started with solar myths! Expect to hear more about solar installation, solar and the environment, operating your solar electric system, and maintaining your solar electric system.
Do you have a question, or have you seen a solar myth you’d like us to explore? Please comment below, and we’ll do our best to incorporate your feedback in future posts.
