Is Solar A Scam???

Is Solar a big scam? 

Ah the sun, nature’s way of giving us free energy. But are solar panels a brilliant money saving hack or just an overpriced scam? Spoiler alert, it’s not a scam but we do need to talk about the money. 

Hi, it’s your friend Eva, and I’m in debt. No savings, no retirement and absolutely no business giving financial advice. But here we are. If you're ready stop being shamed, to tackle your debt alongside someone who's there, with no judgment, no extreme crazy advice, just real, practical money strategies, then hit like, subscribe, and sign up for my weekly newsletter! Before we start, I’m not a financial advisor. When it comes to financial advice or any advice you find on the internet, do your own research.  

I have friends with solar panels on their roof. In addition to research, I did ask them lots of questions. Who better to ask than someone who has solar. 

Let’s first go over the pros and why people love solar.  

Lower electric bills. Say you’re paying $150 a month. With solar panels, that could drop to under $20 a month. I have one friend who pays $5 a month. That’s to keep the account active. If your bill is $20 a month, you will save $1560 a year. Live in the house 25 years, that’s $39,000 saved in electric bills. 

Tax credits incentives. Depending on the state you live in, you may qualify for federal or state tax credits and incentives. All my friends got tax credits when they filed their taxes. If the installation was $20,000, they got $6000-ish in tax credits. 

Increased home value. Homes with solar panels sell for at least 4% more. Sell your home for $400,000, that’s $16,000 in your pocket. It covered most of the installation cost you paid. 

Energy independence. Do you live somewhere that has lots of black outs? Not a problem for you. 

Environmentally Friendly. The switch to solar will offset about 3-4 tons of carbon dioxide a year. It’s like planting 100 trees each year. 

Like everything in life, there are cons. 

High upfront costs. A good system will run you $15,000 to $25,000 upfront. With the incentives and long-term savings, you will make that money back and more. 

Nighttime. Solar panels don’t work in the dark. You may have to invest in a battery system which can add an additional $10,000. That said, after sundown you will be back on the grid for a few hours. 

House location. If your roof doesn’t get enough sunlight, it’s a no. No sun, no savings. 

Solar is a marathon not a sprint. On average, it takes 6 – 10 years to break even. Once you do, it’s basically free energy. 

Shady Companies. See what I did there. The issue is that some companies overpromise and underdeliver. You need to research the installer. Read reviews, get recommendations, and get multiple quotes. Look for warranties on both the panels and the installation. Every business has shady people. You need to weed them out. 

Is solar worth it? Yes, yes it is. If your home gets good sunlight, you have the budget, you’re in it for the long haul, then do it. You won’t regret it.