Does this quote look right?

[Slash300zx]

Hi everybody, just recently got a quote to install a solar system in my house which at the time they came and explained how everything works, made sense. I'm paying an average of about $240-250 a month for my electric (FPL Florida) and the quote they gave me was for $46k (25 year loan) for everything said and done. It's a 11.4kw system with 30 panels (Module Group panels Mission 380w and Solaredge Inverters) and set to produce about 17000-18000 kwh a year. After the tax credit and all that, my monthly payment came out something around $155 plus maybe $60 or $80 (in the months I spend the most electric) for FPL. I needed a new roof, so I'm doing the new roof and everything together to take advantage of the 26% tax credit and the quote for that was pretty good I think, about $16k.

So my question is, is this quote way too high? I keep seeing the average price is about $2.60/w for the system so if I do the math, with this $46k quote they are charging about $4/w !?!!?! Does the $2.60/w mean just the system itself without installation and permits etc, or is this quote I got just a rip off?

Thanks

[solarix]

Here is the deal. Solar companies that provide loans jack up the cost of a solar system and decrease the interest rate to max the tax credits. The monthly loan payment still looks good to you as it is less than what you are paying the power company. They are going to make bank on this deal and leave you with crumbs. What you need to do is shop for cash deals and then get financing on that if you want to. $46K on a 11.4kW system is over $4/watt when quality solar panels (the most expensive part of the system) are going for about 60cents/watt. I don't know what a fair price is for Florida, but around here it is less than $2.50/watt. I'm not recommending SolarEdge inverters either.....

[Mike 134]

Illinois location here. Doing a self-install the turnkey price looks to be (just received my permit so final number may change) $1.33 watt. That's paying $0.49/watt for the panels plus all the permit fees, drawings, materials etc. So 2x, to 2-1/2x that number would be a fair price here for a contractor. Florida is a right to work state, so wages are lower there. That number sounds to high.

[SunEagle]

Hi everybody, just recently got a quote to install a solar system in my house which at the time they came and explained how everything works, made sense. I'm paying an average of about $240-250 a month for my electric (FPL Florida) and the quote they gave me was for $46k (25 year loan) for everything said and done. It's a 11.4kw system with 30 panels (Module Group panels Mission 380w and Solaredge Inverters) and set to produce about 17000-18000 kwh a year. After the tax credit and all that, my monthly payment came out something around $155 plus maybe $60 or $80 (in the months I spend the most electric) for FPL. I needed a new roof, so I'm doing the new roof and everything together to take advantage of the 26% tax credit and the quote for that was pretty good I think, about $16k.

So my question is, is this quote way too high? I keep seeing the average price is about $2.60/w for the system so if I do the math, with this $46k quote they are charging about $4/w !?!!?! Does the $2.60/w mean just the system itself without installation and permits etc, or is this quote I got just a rip off?

Thanks

I am not sure where you got that $2.60/watt value but $46k for an 11.4kw system is very expensive and may take more then the 25 years to pay for itself especially if you add all the interest for the loan on top of the $46k. Also once you have a solar lease it becomes hard to sell a home. Something to think about.

[Slash300zx]

Hey thanks for the responses. So I clarified a few things and the $46k is the total amount including all fees and including the interest on the loan as well, the total I would end up paying at the end of a 25 year loan. The actual price would be almost $34k (about $3/w ). The other thing is that it is not a lease, it is bought so I own it after I either pay the loan or pay it cash. I did had another offer a little while ago where it was a lease and did not like that, specially if I were to sell the house but I have no plans on selling anytime soon.

[SunEagle]

Hey thanks for the responses. So I clarified a few things and the $46k is the total amount including all fees and including the interest on the loan as well, the total I would end up paying at the end of a 25 year loan. The actual price would be almost $34k (about $3/w ). The other thing is that it is not a lease, it is bought so I own it after I either pay the loan or pay it cash. I did had another offer a little while ago where it was a lease and did not like that, specially if I were to sell the house but I have no plans on selling anytime soon.

That sounds better but I still feel you need to determine how much money you are really saving and if a solar pv system is worth the expense.

Unfortunately for me I am going to be 69 next month and most of the estimates I have gotten calculate out to 12 or more years before they pay for themselves. That would put me over 80 and I keep thinking what the money I spent on solar would go to other things that would make my life better which come out to a few things so solar just does not make financial sense to me even if it continues to save money on my electric bills which averages less you what you pay each month.

[aranala]

How much would that be if you pay cash and keep your credit? You can get the financing yourself. At least you would now how much they are charging you.

[Ampster]

........
Unfortunately for me I am going to be 69 next month and most of the estimates I have gotten calculate out to 12 or more years before they pay for themselves. That would put me over 80 and I keep thinking what the money I spent on solar would go to other things ........

Fortunately I made it to 78 and I recently installed solar on a recent home purchase. I might not see the cash payback but my wife or a subsequent purchaser will. It all depends on where you are standing.

[foggysail]

Here is the deal. Solar companies that provide loans jack up the cost of a solar system and decrease the interest rate to max the tax credits. The monthly loan payment still looks good to you as it is less than what you are paying the power company. They are going to make bank on this deal and leave you with crumbs. What you need to do is shop for cash deals and then get financing on that if you want to. $46K on a 11.4kW system is over $4/watt when quality solar panels (the most expensive part of the system) are going for about 60cents/watt. I don't know what a fair price is for Florida, but around here it is less than $2.50/watt. I'm not recommending SolarEdge inverters either.....

I thought it was only the purchaser who got tax credits unless it is a lease system.

[foggysail]

Hey thanks for the responses. So I clarified a few things and the $46k is the total amount including all fees and including the interest on the loan as well, the total I would end up paying at the end of a 25 year loan. The actual price would be almost $34k (about $3/w ). The other thing is that it is not a lease, it is bought so I own it after I either pay the loan or pay it cash. I did had another offer a little while ago where it was a lease and did not like that, specially if I were to sell the house but I have no plans on selling anytime soon.

I highly suggest you download a money lending app so you can see the interest charges over time

[Ampster]

I thought it was only the purchaser who got tax credits unless it is a lease system.

It is. That is why they jack up the price to buy down a lower interest rate. Finance 101. "You can pay me now or you can pay me (more) later.