IS SOLAR POWER ENERGY A HOAX?
Some question that Minnesota does not receive enough sunshine to power a home sufficiently to cover a home’s electrical needs. Some wonder if people will not only have an electric bill but they will also have a solar system loan to pay for 25 years. And some are skeptical when they hear that having a solar system is free (when very few things are ever really free…except I can’t help but note that sunshine is actually free 😊.)
These are some of the real questions that people have about solar power energy and as such must be listened to and discussed.
In all reality, not every rooftop is situated or built in such a way that solar would be beneficial. And it is true that solar energy systems are NOT the correct green energy or cost savings solution for a number of Homeowners. And the correct answer to solar viability for any home becomes apparent when several factors are looked at.First, a few knowns.
When a roof line is facing south, southeast or southwest, with no shade or obstructions, and the roof can hold enough solar panels/optimizers to produce a majority of a families’ electrical use, Minnesota is a fine state for very effective solar energy production.
Minnesota is sunnier than some places in Texas and Florida and is rated the 27th sunniest state in the country. When using top tier solar panels that continue to produce and withstand Minnesota Winters (Solaria XT 365’s and the newer 400w panels are a great example), with a 25-year workmanship, product and production guarantee by the installer, the picture looks more realistic for solar in Minnesota.
But these conditions do not exist for some Homeowners.
And abundant sunshine is not the entire story for Minnesota solar energy viability.
Some ask, because Minnesota experiences 6 months or so of Winter and 6 months of, well, the rest of the year, how can solar systems in Minnesota provide electricity for the homeowner year-round? The solution has been worked out and arranged with the Utility Companies. The Utility companies have set up a system that when the Homeowner’s solar system OVERPRODUCES in the Summer (making extra electricity that the customer does not use) this excess energy is stored by the Utility company through the grid. And then during Winter’s less producing months, this same customer draws down from their bank of Summer electricity stored at the Utility.
The Utility also serves as the bookkeeper of the solar production, electricity use and credits, and reports this to the Homeowner monthly. AND all Minnesota Utilities pay Net Metering which is the retail rate for the excess solar your system produces.
In Minnesota many Utility companies further incentivize their customers to install solar panels by offering performance based incentives. Xcel Energy, Dakota Electric and Chaska are the top three in Minnesota. These utility companies pay their solar customers money per kilowatt hour that is produced by the Homeowners solar system providing a monthly or end of the year true up for any excess electricity production. These incentives can range from $2000. to $9,000. to be paid to most homeowners.
And to better tell the full story, recently the 26% Federal Solar tax credit was extended through 2022. This means that a quarter of the cost of the solar array can be written off on taxes for the year the solar is installed if that tax amount has been paid by the Homeowner. Most Homeowner’s qualify for this if they pay taxes. The tax credit can be applied over the course of several years as needed.
In today’s world, there are Green Energy Loans that specifically provide financing for renewable energy projects including installation of a solar energy system. The interest rates are very low for these Green Energy Loans ranging from 2.99% and 3.99% as many of them work with green energy supportive Credit Unions.
When the simple math is run for a particular home, analyzing configuration and location of roof, measuring shading, understanding household electricity usage, plugging in Utility Incentives and 26% Federal Tax Credit…….after looking at these things…….the payment for the solar system with no money down should be lower than the existing electric bill by a good amount. With the help of the extended 26% Federal Tax Credit and Utility Incentives nowadays there is typically no more “pay back” year.
When these elements align, the Homeowner will pay less each month than their current electric bill, and over the course of time should save many thousands on electricity for their home. This was not always the case, but today it is for many Homeowners.
And finally, when solar energy professionals let you know that solar can be installed for free on your home, what they mean is that in most cases with a Green Energy Loan, no down payment is required. Typically no payment is even needed before the design and installation of your solar system. And the money you would have been spending on your current electric bill is in most cases higher than the cost of buying your own solar system. So when the solar system switch is turned ON, the Homeowner is actually saving money AND has a levelized cost of electricity.
With the energy cost savings for the Homeowner available to be used for other things.
Your particular home may or may not be a good fit for solar. But today you DO have the option to discuss solar viability for your home with an Energy Advisor who will answer both your questions and concerns, analyze your roof, and explain the incentives and rebates you can have applied in your neighborhood. And if a solar system will not save you money or achieve your carbon offset goals, your Optimum Energy Group Energy Advisor will not want you to install one.
However, you may learn through this research that your home is a great candidate for solar savings and carbon offsets, and we can walk you through the process.
We look forward to meeting you if you would like to take the deeper dive and explore the viability of solar on your home! Reach out to chat to our Optimum Energy Group Energy Advisors at 612-524-8534 or info@optimumsolargroup.
Save Money. Save the Earth. Simply Smarter.
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