You need to consider a few things before installing solar panels on your roof, just like buying your first car wherein beforehand, you need to have a garage, driver’s license, etc.
Here are 7 things you need to consider before planning to have solar panels on your home:
- Do you have a roof that can support solar panels? Make sure that your roof is not covered in shade most of the day throughout the year like tall trees or your neighbor’s roof.
- Have you done everything you can to improve efficiency? The amount of solar energy you need to produce depends on how much you use, so it makes sense to trim your usage as much as possible before paying for all those panels. Start with an energy audit and look for efficiency upgrades before you draw up blueprints.
- Which kind of solar makes sense? The two dominant solar technologies to pick from are photovoltaic, which uses arrays of cells to turn sunlight into electricity, and thermal, which uses sunlight to heat water or air for use inside.
- How do you connect to the grid? The details vary depending on where you live, but the principle is that any time you’re connecting with a utility, there are a lot of logistics to sort out. Do you have to pay a fee? How long does it take for the utility to get you hooked up? Once you are connected, how and when will you be credited for the electricity you generate?
- Is your installer trustworthy? This applies any time you hire someone to come into your home, but solar combines the logistics of a home improvement project with the risks of electrical work. Credentials and references are especially important. You wouldn’t hire an electrician who had never done electrical work to come into your house and change things around, right?
- Lease or buy? Every household will need to run its own cost-benefit analysis on this basic trade-off. Buying your own system costs more up front but pays bigger dividends; leasing lets you access cheaper electricity with little or no money down, but the benefits are more limited. If you lease, the company you contract with owns the system, and you pay them a certain rate for the electricity; when the lease is up, they might take the system away. When you own the system, it can keep working for you long after it pays off the cost of the purchase. Make sure you compare the total lifecycle cost of the lease and weigh the savings against the benefits you would get from ownership.In your financial analysis, keep in mind that the panels can function for decades, Wilhelm says, but other electronic equipment in the system, like the power inverter, has a shorter lifespan. Don’t forget to factor in replacements for those other system components when budgeting the cost of the project.
- What should you see in your contract? The contract you sign should spell out all the details of financing, ownership, and performance expectations. Also, because these systems can include web-enabled devices, you should check if anyone is collecting data on your home energy production and usage and who has access to it.