One problem I found in my research was that there was a lot of predictions and payback calculations from those interested in selling solar, but not too many detailed cost-benefit reports from users. I decided to start this blog to record the calculations and predictions I made, as well as actual costs I am paying, and actual savings I am receiving.
I'll get into more detail in later posts, but I wanted to highlight a few points here. First, solar generation and savings are not constant over the year. I'll generate more power in the summer due to both the length of day and angle of the sun. Plus, it will be worth more to me during the peak summer days when I am paying "time of use" rates. However, my costs are constant over the year due to monthly payments on the loan I took out to finance the installation. Accordingly, I expect my costs to exceed my savings for the first five months of the year, but I hope to earn enough between June and September to more than make up the difference. Annually, I expect about $2320 in direct savings (reduced electricity bills). My loan payments are $229.16/month totaling about $2750. But that includes about $1780 in tax-deductible interest in the 28% tax bracket, giving me about $500 of tax savings and lowering my annual costs to $2250, which is $70 less than I am saving... just based on generation. But in addition to the utility savings, I will be earning "carbon credits" that I can sell (worth approximately $100 per month.) Plus if I ever sell my house, the appraised value should be higher (some sources say as much as the cost of installation!)
Will I actually realize these profits? Time will tell. Follow along this year as I see if my calculations match reality!
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