Last Summer we had Solar Panels installed and, since then, I have had a lot of questions about them, so here are the lessons we learned.
Solarize Plano is Your Friend
We were part of a group purchase project with Solarize Plano. They sent out a Request for Proposal to a group of vendors, scored the results, and picked a vendor. They also held information sessions to educate us on solar panels and our choices.This year, they have a bit of a different program. They help educate you, but then they put you in touch with three vendors from a short list. Those vendors then make proposals. You are not bound in any way to use them.
No matter how you find your vendor, I highly recommend reaching out to Solarize Plano for their knowledge. They have forgotten more than most of us will ever know about residential solar systems.
Incentives Are Out There, For Now...
Each year Oncor has a specific amount of money set aside to defray the cost of the installation of residential solar systems. In our case, it was about a third of the cost. There is no guarantee that will continue and it is a first-come-first-served basis, so seek them out early in the year before the funds run out. Your vendor should handle this for you. If they don't, you probably should find another vendor.
Disclaimer: I am not a tax professional, nor do I play one on TV. You should verify the impact on your own taxes with a tax professional.
You are eligible for a 30% Federal Investment Tax Credit, but, as of now, they will end December 31, 2016, so if you are thinking of solar panels, sooner is better than later. If you get a $15,000 system and Oncor paid for $5,000 of it, then you would only be able to count the $10,000 you paid, resulting in a $3,000 tax credit.
Of course, because it is a tax credit, this can still help even if you maxed out your deductions, provided you pay taxes. For example, in the case above, if you owed less than $3,000 in taxes, you would not be able to take full advantage of the credit.
Be wary for installers that lump in related services, like improving your insulation. These tax incentives only apply to the money you spent on the solar system and its installation.
What Did We Do?
We opted for a relatively large system that produced 6.88 kW. We had to place most of our panels on the west face because regulations passed in January, 2014, sharply reduced the area we could use on our south face.
It should take about 9-10 years before the system pays for itself, but then it should be good for at least 15 more years beyond that, which is just extra money for us. We qualified for the Oncor incentive and the tax credit. The net result was that we saved/avoided about %50 off the cost of the system. And in the 8.5 months since the system has been active, we have offset pollution equivalent to planting over 200 trees.
So, if solar panels make sense for you, then, as they say, get them while the gettin's good.
