I just got a DIY kit quote for solar and it’s ~$18,000. That would mean a contractor installing is at least $25,000 if not more. That’s a big chunk of change upfront.
You’d have to consider also long-term maintenance and repair costs to that …
How do people afford the upfront cost of solar?
Submitted 1 year ago by AnotherPerson@lemmy.world to [deleted]
Comments
WeAreAllOne@lemm.ee 1 year ago
RvTV95XBeo@sh.itjust.works 1 year ago
Typically if you can afford a $25k upfront cost, the long term costs are pretty negligible.
If you’re paying cash, then your monthly expenses are only going down due to your reduced electricity bill, so your savings potential is going up further.
Additionally the panels are warrantied for at least a decade, with a performance guarantee for 20+ years. If they’re installed on your roof, many also include a guarantee on the roof work.
Proactive solar maintenance is really just keeping things clean, which costs very little.
These small costs do add up if you’re barely making ends meet and on a lease plan that costs roughly the same as your old utility bill, but for the group paying upfront, ¯\_(ツ)_/¯
WeAreAllOne@lemm.ee 1 year ago
And also nobody talks about the manufacturing costs which are huge!
RvTV95XBeo@sh.itjust.works 1 year ago
Sarcasm aside, you’re right that solar can be a hefty upfront cost. Going DIY can save you on install costs, but often you’re getting the panels at a less favorable rate than a contractor buying in bulk, and you’ve generally gotta do it all in cash.
Most halfway decent solar vendors will be happy to walk you through options free of charge. You can get quotes, alongside real savings estimates based on your roof orientation. They should be able to provide you with a quote, incentive breakdown, and payback estimates for:
Owned solar, where you pay everything upfront and recoup over time
Leased solar, where you pay only a small portion down, with monthly lease payments
Power purchase agreement, where depending on your location they essentially can act as the middleman with your utility. The savings here are usually near zero, but you get to run solar at home.
Tarquinn2049@lemmy.world 1 year ago
Whether solar is worth it in your area currently largely depends on the size of the government subsidies. Without subsidies it is only about a break even proposal on average, worse some places, better others.
The upfront cost is the biggest barrier, once you have a system in place, you’ll likely never replace the whole thing at once again. You’ll do the batteries, or the panels, or the wiring, or individual pieces of each if you prefer. But rarely will you do all of it in the same year again.
So if you don’t have any subsidies in your local area, it might just not be a good idea yet. It could still be, but you’d have to work out for your specific house if it is. And you’d have to take out a loan, assuming your credit/leverage is where it would need to be for that to be possible, and you can afford the repayments.
I can’t say it’s common for people to have savings when the data clearly shows such a high percentage of people live paycheck to paycheck. But in my family we were raised to abhor living paycheck to paycheck, so we’ve all taken to having savings instead. It’s much harder, and a completely different mindset. Basically you have to ignore the thought that money sitting in the bank “isn’t doing anything”. It is providing peace of mind and reducing stress.
Stress is one of the most expensive things in life. Not having whatever nice stuff you could have with that money, newer phone, better car, bigger house, doesn’t make your life anywhere near as bad as always being stressed. Live below your means. It’s very much worth it. The cost of stuff tends to rise exponentially compared to it’s value. The more you get, the more it costed to get more. Something half the price is usually still 80% as good.
It’s so nice to be able to buy stuff out of pocket with a fraction of your savings. Or to have money on-hand when an unexpected expense crops up.
Having said all that, some people don’t have anywhere to go down, they already drive a car that costed less than 5k, or better yet don’t own a car. And they live in a house that meets their needs but doesn’t exceed them. They only upgrade their electronics when they need to, and update them to last year’s midrange. If doing all that, and still living paycheck to paycheck, then you might consider if where you are living is worth it. There might be better overall options. It’s getting much easier to socialise with long distance friends and family on the cheap. Your skills might pay relatively better to the cost of living somewhere else.
lemming007@lemm.ee 1 year ago
Make sure to do the math if solar is even worth it for you. Electricity is relatively cheap in my area. When I did the math, it would take me at least 20 years to break even (that’s if I paid cash, even longer if I finance). Considering 25 years is an average panels lifespan, it would not save me any money.
jim@lazysoci.al 1 year ago
And no plans are in place for the disposal of panels, batteries, etc after their 25 year useful life…
wildbus8979@sh.itjust.works 1 year ago
Lithium batteries are highly recyclable…
infinitevalence@discuss.online 1 year ago
The crazy thing is that 25 years after installing the system still works, its just not as efficent. Also you are just wrong about batteries, we already recycle lithium its just that once a battery pack is no longer useful for its application its better NOT to grind it down and sort out the materials, but first to reuse it in another application.
This is the area where we are still working on improving, current tech is looking at doing 2nd lifecycle applications for EV batteries in grid scale storage for example.
atempuser23@lemmy.world 1 year ago
They get less solar. If you only have 10k buy a 10k system. Systems can be expanded later on.
Otherwise people get loans.
bakachu@sh.itjust.works 1 year ago
Outright purchase, finance, or lease are the 3 options for getting solar. Many people prioritize this on their wish list, save up, and eventually can afford to do so. There may also be subsidies, rebates, and tax credits (federal and/or state) that may apply. New York, for example, is eligible for a max federal credit of -$5700 and a state credit of 25% of your system value to your income taxes. So that would shave off a lot.
Guster@lemmy.world 1 year ago
Solar really isn’t for the masses quite yet. If you do they math you will realise that it’s only a gimmick to get the 0 dollar electricity bills. The only reason I can see is to be able to go off the grid
GBU_28@lemm.ee 1 year ago
If properly engineered, the ability to have some power when the grid is down is a big selling point.
Hazdaz@lemmy.world 1 year ago
Have we never heard of a loan?!
Home improvement loans tend to have very reasonable rates. A $25k loan for 5 years is only about $525/mo.
Wookie@artemis.camp 1 year ago
Only about $525/mo
That is so cheap! Let me just dip into my trustfund
GBU_28@lemm.ee 1 year ago
For a homeowner ready for capital improvements to their property 525 is cheap.
cantstopthesignal@sh.itjust.works 1 year ago
Did you just learn that some people have more money than you?
RvTV95XBeo@sh.itjust.works 1 year ago
Did you know, some people pay cash for cars, or even homes?
cantstopthesignal@sh.itjust.works 1 year ago
I knew a guy that had a boat, that crazy mfer
ilmagico@lemmy.world 1 year ago
Even having the money, most people that install solar panels, and don’t do it just for idealistic reasons (fighting climate change, etc), expect to save more money than they spend in the long run. Well, depends of the specifics of course, but it might take years, even decades to recoup that initial expense. Even if you have the cash, it might not be worth it.