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Depends on how much power you need and your access to sun. I'm in the Bay Area, installed solar panels about 18 months ago. Break even for the panels is estimat

Depends on how much power you need and your access to sun. I'm in the Bay Area, installed solar panels about 18 months ago. Break even for the panels is estimated to be about 6 years at current market rates. Now I also had to do a new roof, which roughly doubles the break even time, ignoring the fact that I'd have needed a new roof anyways. Currently I'm not taking into consideration decreased efficiency because the panels are warrantied for 90.08%+ at 25 years. Also something not taken into account on breakeven/cash positive is the fact that PG&E rates are always on the rise. As of March of this year rates went up 9%. The more rates go up, the faster I break even.

brianwawok 5y ago
You can take increasing rates , but then you also need to take opportunity cost. You paid say 50k cash for solar? Put that in SP500 for 6 years. It’s not 50k anymore.
- tkojames 5y ago
  I got solar in northern California with new roof that needed to be replaced. I got 30 percent tax credit on the roof as well. Paid for the roof in cash but took 10 year loan out for the solar panels at 3.0 percent. Break even at this rate is about 4 years already a few year in. With inflation right now I feel like I got good deal borrowing the money. Right now my loan payment plus then 10.00 monthly connection fee is less than my average monthly bill before 2019. Not sure I would do it with needing a new roof though. But everybody experience will be different.
- dap 5y ago
  You do, but it seems pretty good even taking into account opportunity cost? My calculations: https://news.ycombinator.com/item?id=31105389 https://news.ycombinator.com/item?id=31105389 Someone else said it better in a different subthread: https://news.ycombinator.com/item?id=31105120 https://news.ycombinator.com/item?id=31105120
  - brianwawok 5y ago
    Yah I’m not doubting it is good in Cali, I’m just saying you need to include the opportunity cost if going that route. I wish the break even was better further north for me.

brianwawok 5y ago

You can take increasing rates , but then you also need to take opportunity cost. You paid say 50k cash for solar? Put that in SP500 for 6 years. It’s not 50k anymore.

tkojames 5y ago
I got solar in northern California with new roof that needed to be replaced. I got 30 percent tax credit on the roof as well. Paid for the roof in cash but took 10 year loan out for the solar panels at 3.0 percent. Break even at this rate is about 4 years already a few year in. With inflation right now I feel like I got good deal borrowing the money. Right now my loan payment plus then 10.00 monthly connection fee is less than my average monthly bill before 2019. Not sure I would do it with needing a new roof though. But everybody experience will be different.
dap 5y ago
You do, but it seems pretty good even taking into account opportunity cost? My calculations: https://news.ycombinator.com/item?id=31105389 https://news.ycombinator.com/item?id=31105389 Someone else said it better in a different subthread: https://news.ycombinator.com/item?id=31105120 https://news.ycombinator.com/item?id=31105120
- brianwawok 5y ago
  Yah I’m not doubting it is good in Cali, I’m just saying you need to include the opportunity cost if going that route. I wish the break even was better further north for me.