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Where History Meets Sustainability

Solar Array 1 Year Review

8/8/2024

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We did it! It's been two years since we went gas-free, a month since our meter removal, and now it's been a year since we installed and fully integrated our solar system into the network. Overall, I'm very happy with the results of these choices.

The first year we went gas-free, our regional gas prices increased by 40%. Since I wasn't on gas any longer, that didn't touch us. Electricity prices increased as well, but not as dramatically. Now, we are paying the loan on our solar system, and we have eliminated much of our financial dependance on the energy we purchase by selling back most of our energy in the summer.
The West side of the house showing solar panels covering the majority of the roof.

​Solar Loan + Tax Incentives

In order to install solar on our house, we took out a fairly substantial loan to make it happen. Solar financing is a secured line of credit, so these are generally easy loans to qualify for. The justification the solar companies make is that the amount of energy savings will cover the cost of the loan once energy costs surpass the loan amount. It makes sense: spend more now, save in the future.

The other nice thing about getting solar last year (or now, for those considering it) is the 30% tax credit. All we had to do on our taxes was submit the amount of our system into IRS Form 5695, and we are getting that money back. Since our system credit + other returns is larger than what we paid in taxes, we're spreading the return over 3 years instead of one lump sum (our tax prep didn't give us another option on that).
​
*I recognize, too, that this information is mostly applicable to folks living in the United States.  Ideally, this technology would be available to everyone.
The Rapid Shut Down module for emergency disconnection of the solar system.

Solar Cost

One thing that is really misleading in marketing and pricing for solar panels is the cost per kWh is calculated with the tax credit already taken out. The rule-of-thumb is that a system typically costs around $3/kW... except before the 30% is figured in, it's closer to $5/kW.

Our solar system was just over $82K. Over 3 years, we're getting a total of around $25K back on our investment with the 30% IRA tax credit. So, our out-of-pocket is $57K. We have an 18kW system that currently covers a little more than we use a year. Since we're all-electric, that also makes our 103-year-old house net-zero.
Our system is also about 3x the state average, and our cost reflects that.

There is some nuance with solar loans: there are two payment options.
  1. Keep the tax incentive and take a slightly higher payment, or
  2. Pay the incentive in a lump sum to the loan.
Because our tax incentive is incremental and we have other loans with higher interest rates, we're taking option 1. It's giving us a way to consolidate higher interest rate debt (some of our student loans) with a loan that has no penalty for early payment.
Data showing total energy produced and used during one year.
The total energy includes data from months not shown in the bar graph covering 1 full year of data.

​What Does Net-Zero Look Like?

I doubt anyone driving down our block would really think we were net-zero, or even think it's possible... but net-zero doesn't mean free either.  There are still some operating costs with our system. Largely, we pay the power company metering and maintenance fees. Since we didn't have net-metering for most of last year, we also paid a little for energy over the winter.

Without a giant battery-array, there isn't a good way for us to go completely off-grid in winter. We have such deep cold and far less sun to sustain us. Eventually though, we'll add a battery back up system to help us out when the grid goes down. Our solar system is able to keep us running on sunny days without the grid, but night and winter coverage would be the perfect supplement to what is already a great system.
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    Katie Swanson

    I am a parent, creative spirit, and old house lover.  My big passions are sustainable design and preservation.  Bringing these together is key to moving existing homes into the future.

    There is definitely a mix of seasonal craftiness and old house projects with some major technology changes that help make preservation possible.  Along the way, I'm not afraid to share the ups, downs, and budgets.

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