This Article Discussed Cost & Savings For Solar Panels

Al’s Plumbing, Heating & A/C in Plano, Texas provides maintenance & repairs for all brands of Central A/C, Gas & Electric Furnace, and Heat Pumps.  Additionally we sell and install new HVAC Systems from American Standard (same company as Trane), Ameristar (same company as American Standard) and Coleman HVAC (same company as York HVAC).

Al’s also provides full service plumbing maintenance, repairs and replacements for every plumbing component in your home.  Al’s sells and installs Rheem Professional Series gas & electric water heaters, and tankless water heaters.  Al’s is near your home in Plano, Allen, and Frisco.  We service all homes in southern Collin and Denton Counties with no additional travel charge.

Call Al’s today to discuss any concerns or problems you have with your HVAC System or Plumbing.  We will arrange an appointment at your convenience and offer 24/7 Emergency Service.

Als’s Plumbing, Heating & A/C Does Not Sell Or Install Solar Panel Systems.

Image Source: ShutterStock

Solar Panels Must Face South.  This Is What A Home Looks Like From The Street When Facing South

Rooftop Solar Panel System

When Considering Green Initiatives, Many People Think Of Solar Panels.   The Sunnier The Local Climate Is, The More Savings Is Achievable. 

There Is Justifiably A Lot Of Excitement Over The Savings Created

By A Solar Panel System. Below Are Some Addition Considerations.

When Considering Energy-Saving Home Upgrades, You Should Taking Into Consideration:

• Will The Upgrade pay for itself with energy savings during the period of time you expect to live in the home?
• At The End Of Year-8 A Solar System Typically Will Have Paid For Itself in DFW.  We provide the details below.

• Will the Upgrade increase the home’s resale value?
• It May. Appraisal Standards for Solar System Equipped Homes are not standardized.  It may depend on the the Buyer’s Mortgage Company’s Appraisal Guidelines. We provide details below.

Adding Attic Insulation Is #1 Item For Increased Resale Value

** The #1 Home Improvement / Upgrade is adding attic insulation (to at least R-38 in TX).   This home improvement came at the top of home improvements cost versus increase in home value at 117% of the cost of the insulation project.

** Source: http://information.insulationinstitute.org/blog/whats-the-roi-of-attic-insulation

To Learn About Cost-Efficient Ways To Decrease Energy Bills, Click Below: 

 AlsPlumbing.com Reducing Home Heating Demand

Rooftop Solar System Cost & Savings:

• Solar Panel System Purchase Cost
• – Solar Income-Tax Rebate
• – ONCOR Rebate
• 10-25-Year Material’s Warranty
• 25-Year Performance Warranty
• Potential Additional Expense a Solar System can create.  Around $3,000 to remove & replace the Solar Panels as needed for a roof replacement.

• A 6 Kilowatts Solar Panels System in DFW is priced around $18,875 (installed). *2
• Subtract the 30% Solar income-Tax Credit (changes begin to occur in 2019).
• The 2018 After-Taxes Rebate = $12,275 if you pay cash ($13,150 if financed). *3 & *4
• At the time this article was written, homeowners in the ONCOR service territory can receive an ONCOR Rebate for installing solar panels on a residence.
• An ONCOR Rebate of 54 cents per watt is available for residential customers (max. $5,400).
• A 6-kWh solar system would earn a rebate of $3,250 from ONCOR.
• Subtract the ONCOR Rebate -$3,250 on 6kWh system.  The Net Cost = $9,025.

*3 Source: https://www.solarpowerrocks.com/affordable-solar/frequently-asked-questions-about-the-30-percent-federal-solar-tax-credit/

*4  If your Federal Income Tax due is less than the Solar-System Tax Credit the year it’s installed, the remaining tax credit will be applied to future Federal Tax bills until the credit is used.

Can You Sell Excess Electricity From Your Solar System To ONCOR?

Yes, IF you sign with a Retail Electricity Provider that offers this.  These Retail Electricity Providers have solar-buyback programs.  Once signed with one of them, Oncor reprograms your existing smart-meter to meter both the electricity flowing into your home and excess electricity (more that you are using) flowing outward from the home into the Power Grid.  Once reprogrammed, your Meter becomes a Dual-Register Meter.

• Reliant
• TXU
• Reliant
• MP2 Energy
• Green Mountain.
• Each Retail Provider has their own rules.

Reliant offers the simplest plan.  Their “Simple Solar Sell Back Plan” gives you a credit (against future electricity billing) at the retail electricity price.  In addition, you get a 12-month price discount for electricity consumed from the power grid.  The other 3 retailers have more complicated programs, check their websites to see details.

Solar Panel System Cost, Annual Savings, Lifespan,

 And The Number Of Years To Pay For Itself 

•  A 6 Kilowatts Solar Panels System in DFW (installed) Net Cost = $9,025.  After Income-Tax Rebate & ONCOR Rebate are subtracted from purchase cost.

• For a home in suburban Dallas, the calculator determined: Annual Electricity Production for a 6 killoWatt system = 9,400 kWh (in year #1).*6

• The average price per kWh in DFW = 12.5 cents.

• We provide a 30-Year Chart below showing savings.

How Long For A Rooftoop Solar System To Pay For Itself In DFW?

Click Here To Scroll Down For Warranty Period For Various Brands Of Solar Panels: Solar Panel Warranties By Brand

Materials Warranty: Panasonic & Sun Power Are The Two Brands With 25-Year Warranty. 

Performance Guarantee:  Most Panels Will Produce At Least 80% Of Their (when new) Power-Output Rating At The End Of 25-years.

• Using the best warranty, we conclude the decrease in electricity production to decrease by just under 0.8% (8/10th of 1%) per year.
• Our number is rounded up to 0.8% which shows year 25 to be at 77.5% in the chart below.  We accept the 2.5% error in Year 25 in order to simply the math.

• $9,400 kWh X 12.5 cents / kWh = $1,175.00 Savings In Year #1.  
• After year   8 –the Solar System Has Paid For Itself.
• After year 17 — the Solar System has paid for itself TWICE.
• After year 27 — the Solar System has paid for itself 3 TIMES.
• Over the 25-Year Warranty Period =  $23,500. Total Savings.

• In Year-25, The Solar System is guaranteed to be producing 80% of its (when new) production.
• The Solar System Is Not Worn Out After 25 Years.  It continues to generate electricity at around 80% of its original (when new) capacity in year 25 and the production lowers about .08 (8/10ths of 1%) each year.

Source: https://www.solar-estimate.org/solar-panels-101/6kw-solar-system

Year

     Annual Electricity Savings 

               Electricity Production Rate 

                          Total Electricity Savings

1    $1175  100%    $1,175

2   $1166   99.2%  $2,340

3   $1156   98.4%  $3,500

4   $1147   97.6%  $4,650

5   $1137   96.8%  $5,775

6   $1128   96%     $6,900

7   $1118   95.2%   $8,015      

8   $1109  94.4%  $9,125     At the end of year 8, the System HAS PAID FOR ITSELF (electricity bills savings versus its net purchase price after rebates).

9   $1099  93.6%  $10,225

10  $1090   92.8% $11,315 

11   $1043  88.8%  $12,350

12  $1034   88%     $13,395

13  $1024   87.2%  $14,415

14  $1015    86.4%  $15,435

15  $1005   85.6%  $16,435

16  $996     84.8%  $17,435

17  $987     84%%  $18,425   At the end of year 17, the Solar System has paid for itself TWICE 

18  $977    83.2%   $19,400

19  $968     82.4%  $20,365

20 $959    81.6%    $21,325

21  $949    80.8%   $22,275

22  $940    80%      $23,215

23  $931     79.2%   $24,125

24  $921     78.4%   $25,075

25  $910     77.5%   $25,900 At the end of year 25, the Solar System is out of warranty — but not worn out.  It stills provides  $800 in electricity savings next year.

26  $901     76.7%   $26,800

27   $890    75.9%  $27,690   At the end of year 27, the Solar System has paid for itself THREE TIMES. 

28  $880     75.1%  $28,500

29   $875     74.3%  $29,450

30   $864    73.5%  $30,300

Note: Increasing electricity rates would increase savings amounts.

Note:  Average residential electricity prices in areas of Texas have declined during a recent 10-year period.  *8

*8 Source: https://tcaptx.com/reports/snapshot-report-electricity-prices-texas-april-2018

Additional Solar System Costs To Consider

• How Long Do You Expect To Be In The Home?  When you sell, you pass all future savings to the new owner.
• If your roof needs replaced, the Solar Panels must be removed & reinstalled at your expense.  Expect to pay $3,000 for the remove & replace service.
• You must consult with your Home Owner’s Insurance for details on Solar System Coverage.
• You may need to increase your Home Owner’s Insurance Coverage for the value of the Solar System.  Your premium will increase slightly for the higher coverage.
• If your roof is damaged by hail, Insurance Companies pay to replace the roof, but some may not pay to remove & reinstall the Solar System.  You need to check.
• Hail is not likely to damage Solar Panels, but a house fire will.

The Resale Value Of A Solar System Equipped Home  

• “One of the biggest problems appraising the resale value of a rooftop solar installation is there’s not enough standardized information. Solar PV may add value but that is not a given across the board.” says Sandy Adomatis, SRA, LEED Green Associate and Owner of  Adomatis Appraisal Service.

• Adomatis was a co-author of “Appraising Into The Sun” a report issued by the Lawrence Berkeley National Laboratory in 2015. It’s one of the most detailed reports on how to evaluate the value of rooftop solar to real estate value. But it’s limited to just 6 states (Texas was not included).

• $3.76 per watt: The average value of new rooftop solar to a house in California in 2016.   A new 6 kiloWatt System value (on a resale home) = $22,500
• $1.90 per watt: The average vale of a 12-year old system sold in 2016 in CA.  A 12-Year Old 6 kiloWatt System resale value = $11,500.
• The 2018 median home value in CA = $544,900.
• The 2018 median home value in Texas = $188,700.
• With a CA median value of nearly 3 times that of TX, it’s likely a CA solar equipped home’s additional value would be higher than in TX.

• Nearly all Mortgage Lenders require Appraisers to use the Sales-Comparison Approach.
• The appraisal is based on 3 similar, nearby homes that sold within last 6 months.
• If a home with a Solar System is being appraised, if 1 of the 3 compared homes did not have a Solar System, some Lenders may assign $0 value.  This appears to be changing with the passage of time.

• FHA requires the Solar System’s value (owned, not leased) be assessed and must be added to the appraisal value of the home.

• Fannie Mae (conventional) mortgages indicate the value of a solar energy system (owned, not leased) may be included in the appraisal value of the home.
• Freddie Mac (conventional) mortgage appraisal guidelines were changed as of March 7. 2017.
• They state “Updated appraisal requirements for the valuation of properties with (owned, not leased) energy features & high-performing, energy-efficient properties.”

Source: https://www.solar-estimate.org/news/2017-12-10-research-shows-solar-adds-value-homes-12112017

Source: https://www.recenter.tamu.edu/articles/tierra-grande/Here-Comes-Sun

Source: https://www.nbclosangeles.com/news/local/Los-Angeles-Has-Most-Solar-Power-Panels-Installed-in-US-Garcetti-478852673.html

Source: https://www.dallasnews.com/business/energy/2018/04/09/dallas-solar-capacity-rise-still-trails-surprising-not-sunny-cities

Source: https://news.energysage.com/fannie-mae-solar-financing-owning-vs-leasing/

Should You Install A Solar System On A Home In DFW?

There is no definitive answer to “Will I be better off with or without a Solar System on my home?”

• You will be better off with a Solar System provided if you will live in the home for 8 years after installing the system — as the savings will have paid for the system.

• You will likely at least break even (with higher resale value) if you sell the home in less than 8 years.   We discussed the potential issues above.

• It’s important to note that a Mortgage Lender may have guidelines that don’t align with Fannie Mae & Freddie Mac (conventional) mortgage guidelines.  Right now it appears the language says “The Value Of The Solar System may be added to the total appraised value of the home.”

• For FHA Mortgages, right now it appears the language is “The Value Of The Solar System must be added to the total appraised value of the home.”

We also provided the additional hidden expenses a Solar System can create, such as removing & reinstalling to replace the roof.  In an area where hail often damages roofs, you need to know the details of you Home Onwers Insurance regarding if they pay to remove & reinstall the Solar System if the roof must be replaced due to hail damage.

NationWide Home Insurance says: “Rooftop Solar System insurance coverage is included in most homeowners insurance policies.  Solar Systems are largely considered a permanent attachment to your property.   You may need to increase the amount of coverage on your home to account for the cost of the Solar System, which will raise your premium. It’s important to note that some policies may exclude damage to these attachments when it’s caused by a particular threat such as wind.”

Source: https://www.nationwide.com/solar-panel-insurance.jsp

“the average cost to remove and reinstall a Solar System is around $3,000.

Source: http://www.powerhome.com/solar-panels-new-roof-needed-costs-estimate/

Al’s Plumbing, Heating & A/C in Plano, Texas provides maintenance & repairs for all brands of Central A/C, Gas & Electric Furnace, and Heat Pumps.  Additionally we sell and install new HVAC Systems from American Standard (same company as Trane), Ameristar (same company as American Standard) and Coleman HVAC (same company as York HVAC).

Al’s also provides full service plumbing maintenance, repairs and replacements for every plumbing component in your home.  Al’s sells and installs Rheem Professional Series gas & electric water heaters, and tankless water heaters.  Al’s is near your home in McKinney, Garland & Richardon.  We service all homes in southern Collin and Denton Counties with no additional travel charge.

Call Al’s today to discuss any concerns or problems you have with your HVAC System or Plumbing.  We will arrange an appointment at your convenience and offer 24/7 Emergency Service.