Grid Tie Systems
Is a grid tie solar power system worth your time? Well there are a few things to consider..
Downsides:
Benefits:
A huge determinant factor is the cost of electricity in your area. If the cost per kWh is over $.20, you should probably get a grid tie system. Even a small grid tie system will pay for itself rapidly in this instance. If your power is $.40, you have no choice but to have some type of solar generation system to offset your bill.
What you should do:
What I typically recommend people do is to calculate their payback period (how long it takes for the solar system to pay for itself). If the payback period is shorter than the expected life of your roof, you need a grid tie system.
Next, shop around for a month or so. Get a system estimate from every installer in your area. The price can vary dramatically! And so do the financing options. I prefer paying cash for my systems, because the interest rates on solar loans can be high. And typically, they are 20 year loans. So the total interest paid over that time can be massive.
Solar installers are loan sharks, and very effective salesman. Ignore their "limited time offers" and collect as many estimates as you can before choosing one!
Downsides:
- A grid tie system is not very "DIY Friendly". There are very specific electrical codes and fire safety laws to consider when installing a grid tie system. If you are not familiar with pulling permits and having your system inspected, you may prefer hiring a professional instead.
- You are connected to the grid. You will need to follow the rules of your local utility, which you may or may not want to do. Some of the net metering programs can be unfair, and you will still need to pay for your connection to your utility.
- They can cost a ton! Many installers are, in my opinion, loan sharks. They push financed systems to consumers with high interest rates, then hire a third party solar installer. So essentially they are just selling loans, and trying to get a comission from the banks they have deals with. They do very little "solar installing". These companies will sometimes be around for a few years just to sell loans, then they shut down shop. Which makes it impossible for them to honor a warranty claim! Whoever you wish to choose for installing your system, you need to ensure that they will be around for 25+ years.
Also consider the total cost of the system. If your bill is under $30 a month, a grid tie system is probably not for you. The time it would take for you to make your money back would be substantial. My electricity bill with multiple electric cars is $450 a month, so my system will pay for itself quickly. - If you do not have a strong roof, forget it! Do not add an expensive solar power system to a roof that is falling apart. If your roof fails before your solar system does, you will have a bad time! Get your roof done first, then add a solar system second. This also applies to RV's and cabins.
- Some grid tie systems can actually be a horrible investment. If you lease your system, or have a loan with a high interest rate, the payback period may be so far in the future, that your roof will fail before you make your money back.
- Installation can be dangerous. Depending on what grid tie system you choose will determine how safe or easy the install will be. If you have a single string system with high voltage, and you need to run the solar conductors into an inverter and screw them into a terminal, you need to be very careful. This voltage can penetrate the resistance of your skin, and kill you. If you are not familiar with high voltage, you should let a profesional do this part instead. Some grid tie systems are very safe to install, and you will never be exposed to a high voltage if the equipment is not damaged. But just keep in mind that there is dangers when working with high voltages.
Benefits:
- Can be cheap! Even though most grid tie systems are quite costly due to the nature of selling expensive loans and over charging for labor, if you do it yourself, it can be incredibly cheap. The cost for a grid tie systems components is usually a fraction of the total price of a system installed by a professional. Solar panels and grid tie inverters are cheap.
- Great for powering electric cars or air conditioners. If you have a net metering agreement and need to charge your electric car daily, a grid tie system can make a massive difference to your bill. The cost of a grid tie system will pay for itself in a few years! In this instance, you need a grid tie system, even if it is overpriced.
A huge determinant factor is the cost of electricity in your area. If the cost per kWh is over $.20, you should probably get a grid tie system. Even a small grid tie system will pay for itself rapidly in this instance. If your power is $.40, you have no choice but to have some type of solar generation system to offset your bill.
What you should do:
What I typically recommend people do is to calculate their payback period (how long it takes for the solar system to pay for itself). If the payback period is shorter than the expected life of your roof, you need a grid tie system.
Next, shop around for a month or so. Get a system estimate from every installer in your area. The price can vary dramatically! And so do the financing options. I prefer paying cash for my systems, because the interest rates on solar loans can be high. And typically, they are 20 year loans. So the total interest paid over that time can be massive.
Solar installers are loan sharks, and very effective salesman. Ignore their "limited time offers" and collect as many estimates as you can before choosing one!
Try energy pal to Compare Prices of local installers
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This company is pretty cool, and typically cheaper than Tesla and other large installers. You will have one point of contact for finding a cheap price and getting quotes. If you have a warranty issue, you can use them to resolve it as well (they will contact the installer or manufacturer and get it taken care of). They also find the cheapest price among local installers as well. Depending on where you live will determine what equipment/installer/back up system they recommend.
Check them out by clicking here |
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