Caveats galore
In preparing this article, we spoke to six Solar City lease customers in our area and heard nothing but rave reviews. But be aware of a few potential negatives. If and when you ever sell your house, the buyer must be willing to assume the balance of your system’s 20 year lease. Solar City has a team dedicated to helping you do this. Their sales pitch is that any home buyer would, of course, want to get electricity at far below the going rate. Well, maybe. It’s also possible that a potential buyer doesn’t like how solar panels look on the roof. It may well limit the number of potential buyers for your house, just as a swimming pool might.
And what if your roofing shingles wear out and need to be changed? Since this is likely during the 20 year lifespan of the contract, Solar City won’t even proceed if your roof is too ratty. It’s one of the things their engineers look at. But know this: Their standards are low. They’re gung-ho on getting new customers. They’ve okayed projects where the roof’s condition was marginal, and clearly would need replacement in ten years or less. And then? They will charge $500 if your roofing shingles ever need replacement. For that fee, they’ll come and remove their panels, and reinstall them when the new roof is completed. In any case, Solar City likes roofs. They are not willing to construct standalone panels elsewhere on your property.
If all of this sounds attractive, and you don’t want to lay out one penny, and would like to save significantly on your electric bill and also help the planet, and want a zero hassle project, leasing is probably the way to go.
Buying solar
If you have a typical two-month electric bill of at least $150, where you’re using over 6000 kW per year, and pay enough taxes to be able to use the government write-offs, and have a sunny roof or a good enough spot on your property, you should know that the greatest financial benefit comes from owning a solar system outright.
Your system will probably cost around $31,000 whether it’s installed on your roof or elsewhere on your property. But with the current grants (roughly $3,550), and Federal tax credit ($8000) and New York state credit ($5000) you’ll wind up paying just $14,000 out of pocket. That’s for a typical 7.5 Kw system, which will generate about 9000 Kw hours annually.
You must cough up real money. But here, unlike leasing, you’re not merely gaining a 20% reduction in your energy bill. Rather, you’re generating all your power and keeping the entire savings. Your Central Hudson bill will go to zero. Except, again, for that $25 monthly service fee.
It all works through “net metering.” Meaning, during the long-sun months of March through September, you’ll generate far more power than you’ll use, and the utility is required to buy your surplus production. Your meter will actually spin backward. Then at night and during the cloudy low-sun winter months, you’ll buy power from CH Energy or NYSEG, but you’ll do it by using up your credits with them. In theory and in practice, at the end of the year, you will have paid nothing for power. And, by owning the system, you will indeed increase the value of your home.
Ah, but how long will it take to amortize that $14,000 or whatever your personal system costs? Figure somewhere between nine and 12 years. Also, while panels don’t wear out and are warranted for 25 years, the inverter will eventually die, typically in 12 to 15 years. That’s a big waterproof box, usually mounted outdoors on a basement wall, which converts the solar DC to alternating current. Figure you’ll eventually need a new inverter for $2500. Add it all up and it’s probably something like 12 years before you get your money back. But from that point on, all your electricity is free forever.
Some might argue to wait, that solar panel technology will only improve. That’s true. Panels just three years ago were each generating 260 watts. Nowadays they generate 315 watts. At least, the high-end “monocrystalline” ones do. These days, you’ll need something like 25 panels. However, once you have a system that generates all your electricity, you’re set. It doesn’t matter how future technology improves. You’re already making all your power for decades to come.
Where to put them
If you don’t mind how panels look on your roof, and if it’s sunny enough up there, and especially if you have a south-facing slant, and if your shingles are in good shape and you don’t think they’ll need replacing soon, then it’s a no-brainer. There is no physical disadvantage to a roof-system if you’re leasing, because if they get snow-covered and don’t generate power for awhile, you pay nothing during that time. Your power production is continuously monitored: You can see the read-outs on your iPhone or tablet, and the solar leasing company always knows what it’s doing thanks to automated internet signals. They guarantee that if you ever don’t produce power, you’re simply back to buying your local utility power during that interval.
But owning your own rooftop array might change the equation. If your roof has a steep pitch, great: The snow will slide off the slippery tempered glass panels. But if your roof has a gentle pitch, you might be snow covered for a period and generate zilch. Do you ever want to go up there and clear off snow with a roof rake? Probably not.
If you have enough property, they can set up an array in any sunny spot, and dig a trench and run their cables to your home. Done this way, the panels are always sharply angled to maximize solar production, which is also plenty of pitch so that snow slides off. Result: zero maintenance.
As to who to use, a growing number of solar companies serve our region. A few are national. Solar City will agree to engineer and construct a system that you buy, but their prices are 40% to 50% higher than local companies charge, and, again, they only do roofs. However, unlike local companies’ 10-year warrantee, they stand behind everything for 30 years, including replacing the inverter when it goes.
If you do choose to buy, though, here’s what my research has shown. I’ve gotten first-hand reports that included generally good reviews about two regional companies, and have insufficient information about three others. One that has earned consistently high praise is SolarGeneration. They’ve installed solar generation systems for the town of Woodstock, and deserve extra praise for doing charity work. They’re on Route 28 outside of Kingston. Speak to the owner, Todd, at (845) 679-6997. Don’t be thrown by his detached demeanor; his outfit has an excellent reputation.
This doesn’t mean that other companies are not good, too. A Red Hook colleague is thrilled with the system she bought this fall from Sungevity, a national outfit. Tom Gottsleben and Patty Livingston in Saugerties are very happy with the enormous 106 KW solar electric system installed earlier this year by Hudson Solar. Do your homework and check references.
Huge tax break
Congress just unexpectedly agreed to a major extension of the current generous federal solar subsidies. As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. You can claim the credit for your primary residence, a vacation home, and for either an existing structure or new construction. The state credits can be taken over a period of up to five years.
So, first see if you pay enough in New York and Federal taxes to avail yourself of the subsidies. If you pay no taxes, then all you’ll get is that 40 cents per watt NYSERDA grant. If that’s the case, a typical system shoots up to an out-of-pocket cost of around $27,000, plus or minus a few thousand. Then the pay-back time may exceed 20 years and it may no longer make sense to do it.
We say “may” because if utility rates zoom sharply upward in the next decade or two, the numbers change and the pay-back is so hastened, a solar system may be rational even if you cannot fully avail yourself of government credits. Or you may care about the environment so much, maybe your personal economical benefits are secondary and you want to do it anyway.
As for the notion of totally cutting the cord to the electric utility and avoiding that monthly service fee — it’s not practical. Maybe someday, but not now. Giant batteries that take up a chunk of your basement are currently available for thousands of dollars, and then need to be periodically replaced. Although being physically independent of the grid is possible, it still lies in the future unless you have deep pockets.
The bottom line is that leasing means zero outlay and immediate savings. But if you have the money to spend or don’t mind borrowing it, buying panels will save you significantly more in the long run.
Whichever you decide, you’ll be joining a rapidly growing group of home owners in our region who get their energy from the sky. Each square yard of your roof the size of a wall poster gets hit by 1000 watts of Sun power.
It’s free energy. We might as well use it.
Join the family! 
