X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Investment value of Over-sized System

    I use about 5500 KWH.at the moment. One installer suggests a 12 panel system of LG2320's to approx zero out my electric bill. Two other installers suggest 20 panel systems of LG300's or Silfab280's. All 3 on micro inverters., no shade, SouthWest orientation I get a $1000 tax credit, the 30%Federal credit, and will sell SREC's for 10 years=maybe $13,000. With netmetering and I have a friend in town who will buy the excess $1000 ofannual electicity. Since the fixed cost of cabling, engineering, meters, install are close for a 12 or 20 panel system, it seems to make a lot of financial sense to go with a 20 panel system, which will also look better on my roof than 12 panels.
    Apparently I can also get the 30% Federal credit on replacing my roof before I install the panels.
    Am I missing something here ? I have the cash to pay for the system. The payback is about 5 years, roughly a 20% return on investment. This is waaay better than what I can do in the stock market. This seems too good to be true. Again, am I missing something?
    Last edited by Jeff149b; 11-16-2016, 02:15 PM.

  • #2
    1.) I'd check w/ regs. your POCO has as to how oversized you can make a system. The idea behind residential solar is usually to off set some portion of an electric bill, not become a utility supplier.

    2.) Also check IRS regs. and a CPA who's familiar w/respect to roof remediation. Some is, some may not be. It's a gray area.

    Comment


    • #3
      I don't know what you mean with the friend in town buying the excess electricity, but other than the two points above by JPM stuff I've seen from Mass make it a no brainer for an appropriately sized system. Keep in mind the SRecs do change in value and may also someday change to avoid payout on oversized systems on residential... Who knows. But 5 year payoff is good and the rest can be considered gravy. Most other states a low annual usage of 5500kwh have a long time before you breakeven.

      Comment


      • #4
        "I don't know what you mean with the friend in town buying the excess electricity,"
        The solar installers all called it "virtual net metering". My understanding from my electric utility supplier, I can designate and transfer a % of production to anyone served by the same electric utility supplier. A friend has agreed to pay me for however many kilowatts I transfer to him.
        Last edited by Jeff149b; 11-16-2016, 02:16 PM.

        Comment


        • #5
          Originally posted by Jeff149b View Post
          "I don't know what you mean with the friend in town buying the excess electricity,"
          The solar installers all called it "virtual net metering". My understanding is that by filing a "Form Z?" with my electric utility supplier, I can designate and transfer a % of production to anyone served by the same electric utility supplier. A friend has agreed to pay me for however many kilowatts I transfer to him.
          Jeff: No offense meant, but you sound to me like you're in areas you know little about. NOMB, not my money/life/etc., but if I was in your situation, I'd get educated before I went any further. My guess is your ignorance in these matters will help you meet a less optimal outcome.

          Comment


          • #6
            JPM, no offense taken and thanks for your suggestion. I just went to National Grid's website and found confirmation of what the installers are telling me.
            • How often could I submit a Schedule Z form or modify my Schedule Z allocations?
              1. Interconnecting Customers are allowed to submit a final revised Schedule Z form prior to receiving the "Authorization to Interconnect"(and then up to twice per year after receiving the Authorization to Interconnect).

            Comment


            • #7

              Jeff

              It is such a small size system. If you knew what you are doing, then do it. You got nothing to lose maybe a more comfortable usage on electricity.

              Comment


              • #8
                I completely understand the draw of coming here to check your sanity and verify what you're being told by the sales folks. I did the same thing.

                We can give you a 30,000 foot check off, but the details are going to come between getting several competing quotes and asking tons of questions to the sales folks.

                If I had the money to pay it cash and break even in 5 years to zero out my bill, I'd do it... In fact I did it last year. The investment portion of oversizing or putting extra panels to catch more is a more tenuous decision but you are in the best position to understand that risk of your own money.

                Comment

                Working...
                X