TODAY'S SOLAR FACTS

As a solar expert of 11 years, I’ve written this report to address questions and misconceptions about solar for homeowners and share facts with links. (Links at the bottom)

When someone makes a post about solar on social media, it seems that there are always a few people that jump in to say “it’s a scam!", “it doesn’t save you money”, “I know someone that got solar and it was a terrible experience”, “it doesn’t raise your home value”, “it’s too expensive”, “panels only last 10-15 years”, “the loan puts a lien on your home”, “there’s a lot of maintenance”, “when you replace your roof some day, you have to pay to remove the panels”, “you have to have a battery, which is expensive and doesn’t last long”, “I heard that it’s like $60,000 for solar”, and even sometimes a question like “how many solar panels did you get?” Many of these people are well meaning and they don't realize that their misleading information might be taken as factual by someone interested in saving money on their electric bill and considering solar. I want to address these things with facts and links that give you proof.

“Solar is a scam!”

Solar by itself is not a scam. Solar panels do produce electricity and the homeowner uses that electricity and therefore they don’t have to buy all of their electric from the utility company. Solar is on top of 5 million homes in this country, tens of thousands of big businesses have solar systems, and the utility companies have hundreds of thousands of acres of solar farms everywhere. Why? Because it works and it saves them money/makes them more money. Where the scam DOES come into play, is when you buy from a salesperson that either purposely lies to you or they don’t have enough training which causes them to not know what they’re talking about. Yes, we all know that there are sleazy/slimy/dishonest salespeople in nearly all industries. They are in solar also. I’ve seen way too many of them scam a homeowner and it makes me furious. When the salesperson lies, the homeowner is hurt and the industry is hurt. A person buying solar doesn’t know if they were scammed or not until their solar system has been on for a while.

What are a few actual scams?

A. The salesperson shows them a system that is too small, one that's not going to offset as much of their electric costs as they say. They might say that this size system is 100% offset, meaning that you won’t be buying any of your electric in the future from the utility company, that your solar will provide all of it. But, they may know that they purposely are showing you a system that is too small/undersized and might only be 70-80% offset. Once the system is turned on and the homeowner has had it in use for a year, they may say “I’m still paying the utility company X amount of dollars on average (20-30%) every month, it wasn’t the 100% I was told, so solar is a scam!” Because they showed you a smaller system, the price was less than a proper size system and the monthly payments were less than a proper size system, it’s an easy sale for the salesperson.

B. Another way a bad salesperson can scam you is to say “You’re guaranteed to get $$$$ back next year on your taxes!” The 30% federal tax credit is a tax credit, but not a tax refund, so a person does have to qualify for it. How do you qualify? By paying federal income taxes. As long as you have a job in which you pay federal income taxes, then you will qualify for the tax credit. It depends on your income and your tax liability level as to how fast you can take advantage of the entire amount. Some people get it all in the first year, while others with lower income or a lower tax appetite may take several years. The good news is that you do get it all, even if it does take a few years. Since not every person qualifies and not every person can get the full amount back in the first year, being told that you’ll get it all next year is a lie, unless the salesperson has looked at your taxes to see if that would be a true comment.

C. Another scam is to not inform you that the finance companies ask you to apply your tax credit towards the loan at 18 months to keep the monthly payment amount the same. If you choose to keep the tax credit, use it somewhere else and don’t apply it to the loan, then the loan is re-calculated at 18 months and the remainder of the loan payments are about 30% higher to reflect this. All too many people have been surprised at 18 months in to see that they now have a higher payment. All due to a bad salesperson. If you don’t apply the entire tax credit, let’s say half of it instead, then your monthly payment only goes up around 15%, half of the 30% tax credit. Note that the interest rate is fixed on all of our loan options. Also, the vast majority of people DO apply the tax credit to the loan, so their monthly payments stay the same, do not go up. In addition to scams, I’ve seen companies selling solar all the way up until the day they closed up to go out of business and try to keep people’s money without ever delivering any product. Some people that are out to scam you are those that knock your door. Not always, a few of them are good honest people.

“It doesn’t save you money.”

There are many variables in solar and it takes quite a knowledgeable salesperson to understand it through constant training and experience. We look at shade, roof direction, geographical location/closest airport weather historical data, and more in deciding what size system you need. It also depends on which utility company you have as some have full 1:1 net metering (FULL 1:1 Net Metering is when the utility company gives you a credit per kWh you send them that is equal to what you buy it from them at. If your utility does this, you’re getting maximum possible savings with solar.) and others credit you less than that for the excess electricity that your system sends in to the utility in the daytime. When you have an honest and knowledgeable solar consultant, they will take everything into account and properly size a system for you.

When you get a properly sized system, you will definitely save money. The savings over 25 years, even when adding in interest/financing costs if you don’t pay cash, is much more than you paid for the solar system. Example: $30,000 solar system. First, there is a 30% federal tax credit, so as long as you qualify for it, you get $9,000 savings making your net cost be $21,000. In this example, let’s say that the total savings to you over 25 years is $60,000. $60,000 minus $21,000 gives you a net savings of $39,000, so the solar system saved you enough money to pay for itself, (the $21,0000), plus put additional money ($39,000) back in your pocket to use however you want, plus it raised your home value, which for most systems is usually between $15-25K, depending on the size of the system, of course. If you financed, deduct what you paid in interest for the exact number.

If a person can’t take advantage of the tax credit because they don’t have any taxable income, or if there are big trees putting shade on the roof that they would never cut down, etc., I’ve told these people that I do not suggest they go solar as it may not save them money in their particular situation, except for the increase to home value. Sadly, I’ve seen solar systems with huge trees hanging over the home and wonder if the homeowner has enough savings. It comes back to having an honest and knowledgeable solar consultant again. But, the final word is that as long as your system was sized properly for your particular situation, you can take advantage of the federal 30% tax credit, you will save money.

“I know someone that got solar and it was a terrible experience.”

It does happen. I’m sure that most people also know someone that bought a car and it was a terrible experience. I can definitely say that happened to myself. Or someone bought a home and it was a terrible experience. Just now, a close friend of mine bought a home and about a month later, it rained hard and they had 4 inches of water in the house, causing $100K in damages. The previous owner didn’t disclose that this could happen or has happened.

When you go solar, there is a lot that has to take place. First, of course, there is getting you approved for financing and signing those docs. Then there is a site survey, where we take photos and get measurements. There is engineering done with 3D CAD equipment in order to be able to submit for a local electric and building permit. We then submit to the local permit office and wait. For my customers, I’ve seen as fast as 8 days to get permit approval, but I’ve also seen 3 months, with at least 2 months being average. That wait gives some people anxiety as they want the solar installed as fast as possible. The good news is that as soon as they approve it, we’ll call you to schedule the actual install. Depending on the size of the system, if it’s a 1 or 2 story home, it may take only 1 day to install, or it may take 2. Ground mounts, which many of my customers like, take 4-5 days usually because of the complexity of doing concrete work and building a strong metal frame, as well as trenching to put the wiring underground. Once installed, the system has to be inspected by the local authority and those people are extremely picky, which can be both good or bad. It's good they’re picky, because if something wasn’t installed properly and could be a hazard, you want them to catch it so that it gets fixed. But, sometimes, they seem a little overzealous and will fail an inspection for the tiniest of things that don’t really impact anything, but perhaps inflate the inspectors ego a bit. (Like some HOA’s). Once inspection is passed, we submit to your utility company for interconnection. Interconnection is the name of the process in which the meter on the side of your home is replaced with a new net meter. This new meter can measure the flow of electricity coming into your home, like the one you have now does, but it also measures the flow of electricity going out from your home and into the grid. That’s how they measure how many kWh’s to credit your bill for the excess energy you’re sending in to them. When they have completed interconnection, we can legally turn your system on and it’s done remotely via software. That software is also what enables you to monitor the entire system yourself, as you get the see the actual kWh’s produced by each individual panel. Also along the way, there will be additional items that will need your signature, such as interconnection agreement, notice to proceed, etc. And some utilities now have added extra steps to their process such as sending the docs to the City’s attorney for his signature, and having the utility send documents to the permit office saying that they have signed off on the design. These things add some extra time. Each of these steps gives the possibility for a miscommunication by someone.

The good news is that we assign both a Project Manager and an Operations Manager to your project to help guide everything along as smoothly as possible. These people actually get paid a bonus if they can get your system turned on fast enough for you, so they do have incentive besides hourly pay to work hard on your behalf. I tell people that going solar does require some patience. It takes longer now than it did 5 years ago and that’s all because of the utility company, the local permit office and the inspectors. Most solar installs go flawlessly, but some do have hiccups along the way, which frustrates the homeowner. I don’t like delays any more than they do, as obviously I want my customers to have the best possible experience, but there are many parts of the process that are out of my control and out of the solar company’s control. Everyone involved in the sale/install/turning on of the system wants it completed asap so they get paid.

“It doesn’t raise your home value.”

Sometimes this comes from a well meaning realtor who had a home sale or purchase in which the realtor felt that the solar didn’t add value or that they felt the solar was a hindrance to selling the home. Note: when you have solar and you sell your home, be sure that you retain a realtor who is “Green Certified”, as they have taken special training for solar equipped homes, understand the value it adds, know that solar loans are easily transferred to the next homeowner, and have been certified by the National Association of Realtors (NAR). There have been many extensive studies by the government and third parties about the value that solar adds to a home. At the low end, Zillow says it adds about 4% on average. Of course, that depends on if your home is worth $200K or $800K to begin with. Another study by the National Renewable Energy Laboratories shows a 17% additional value. A huge famous study at Lawrence Berkeley National Laboratories in California that’s now 8 years old, says each kw of solar adds about $4,000 of value, (typical solar system in FL is around 10-11 kw) which is much more than solar is priced at now, so I don’t give their valuation much weight today.

Government studies also show that a home with solar sells much faster and websites for home searches indicate that people are using search terms like “solar”, “energy efficient”, “green”, to find their next home. Personally, while I know that solar adds value, I see the value not so much in the physical equipment of solar panels and inverters, but in that the home comes with a lower cost for electricity. If someone looking to buy a home sees 2 similar homes, and one says it comes with a $50 a month electric cost while the other one says their electric cost is $300 a month, obviously one has more value.

“It’s too expensive.”

I could write a book on this subject alone. First, 10 years ago, cash price for a watt of solar was around $5-6, today it’s closer to $2 a watt when paying cash. That’s a dramatic price decrease. Some people that heard the price of a solar system 5 or 10 years ago heard a very high price, because yes, solar back then was much higher, more expensive, and most of the people buying it back then were people who got it because they wanted to help the environment or lower their carbon footprint, etc. Most solar back then was sold in California. For them, it wasn’t all about the savings, because they may not have even received any savings. The price of solar panels and inverters have continued to come down some more in the past year, but not dramatically enough that would make it worth waiting to go solar in hopes that a future lower solar panel price will save you more. This is because you’re paying a high and rising price for electricity now, so waiting to shave a little off the total price does not make financial sense.

NOW, let’s talk about what IS too expensive! Your electric utility company. They raise their price every year. You have no control over how much they raise their rates. In the past 6 years, Duke has gone up 32.5%. Ocala Electric Utility went up 29% last year alone! (Online media said 23%, but by my calculations, it was 29%). I’ve done extensive searches around the entire country, and it amazes me how many utilities went up between 40% and 70% last year. Some came back down ever so slightly this year, just a couple of percent, so they’re still up quite dramatically. And once they’re at a new higher price, they will never come all the way back down to the previous price. They HAVE to raise their rates.

Utility companies such as Duke, FPL, and TECO are investor owned and as such, their first obligation is to take care of their stockholders. They want to make as much profit as possible. Fortunately, they are regulated by the Federal Energy Regulatory Commission, who very occasionally limits how much they can raise rates. Example, this year, Duke requested to raise rates 20%, but FERC limited them to about 8.5% for residential customers. That was actually rare, as these investor owned utilities normally get the full amount of price increases that they request. They also have to raise prices annually due to paying higher wages, retirement funding, higher prices for their vehicles and gas, high prices for wiring, transformers, maintenance of the lines especially after hurricane damage anywhere in the state, etc.

HERE IS THE SINGLE BIGGEST REASON PEOPLE GO SOLAR!

So, overall, utility companies in Florida traditionally raise their rates around 6% average per year. Most people don’t realize this, nor do they realize that this means that their electric costs DOUBLE every 12 years due to it being compounded. So, if you’re paying $200 a month right now for electricity and in 12 years, you’re consuming the same amount of electricity, your bill will be $400 a month based on the averages. In another 12 years, it will be $800 a month. When you go solar, you are LOCKING in your price for electricity for the period in which you’re paying for the loan and after that, you’re paying nothing for your electricity that your solar system makes. This means that NOT going solar costs you more and more every year, for the rest of your life. Going solar means locking in today’s or a previous years price per kWh and because you have a monthly loan payment that stays the same, like a car payment, you do not pay the rising annual rates of the utility company. So, each time the utility company raises their rate, yet you’re still paying the same amount for your own electricity provided by the solar, you save a larger and larger amount each passing year.

“Panels only last 10-15 years.”

Once upon a time, quite a few decades ago, this was true when solar was in experimental stage. Now, solar has fully matured, with technology making them stronger, more efficient, and last much longer. Right now, 5 million homes have solar and there are tens of thousands of businesses with solar and of course, utility companies have huge solar fields all over. In the past several decades, solar panels have improved in all ways. Even in price, as mentioned previously. Tens of billions of dollars has been invested in research and development by huge manufacturers to make solar panels better and last longer.

When I started selling solar over 10 years ago, most panels were close to 200 watts output. 400 watt panels are now an industry standard. This is due to efficiency increases. Higher wattage are available, but cost more per watt. Now, about the lifetime of these panels, they should last 40-50 years. Even if you’re only 30 years old and getting solar, this means that the system you get today will likely last you for your entire life.

Further, the solar company that I chose to represent, Powur PBC, has the best warranty I’ve seen and that warranty is for 30 years. What does it cover? Of course it covers the actual solar panels and inverters, but also includes labor and roof penetration. And the way the warranty is setup, even if Powur ever goes out of business, funds are still there to take care of customers warranties long term. This is because each project has funds transferred from Powur, PBC, the solar company, to Powur Care, a separate entity entirely that is the warranty company. Both companies would have to go out of business to lose the labor and roof penetration warranty, but the homeowner still has the manufacturer warranty on the panels and inverters, which are 25 years. So, for 30 years, any failure of the system costs you nothing.

“The loan puts a lien on your home.”

Not true. Nothing that I do puts a lien on your home. The loan is signature only based, does not use your home as collateral. There is what’s called a UCC-1 fixture filing, which only means that until the loan is paid off, the finance company still owns the system. Just like your home or car, etc. It is a lien ONLY on the solar system itself. Not your home or any other property. So, if you stop making the payments on the solar loan, technically, the finance company could remove them from your roof, but I have never heard of a solar repo team doing such a thing. What they do instead is report it on your credit, just like if you stopped paying a credit card. So, again, no lien on your home. You cannot lose your home if you didn’t make your solar loan payments.

“There’s a lot of maintenance.”

There are no moving parts in a solar system. It's all electric/electronic. For the vast majority of solar system owners, there is zero maintenance. For some that may live on a dirt or sand road, or that has heavy construction nearby or a tree that deposits a lot of sticky pollen on their roof, they may need to occasionally wash the panels. That’s the worst case scenario. A ground mount system is super easy to wash, while a system on a 2 story roof is best washed by a pro who typically charges $100-200.

“When you replace your roof someday, you have to pay to remove the panels.”

This is true. However, we like to put solar on as new of a roof as possible to make this far down the road. I am also the solar manager at a 5 star roofing company and can put both a new roof and solar into one loan/transaction that can save you further money. Also remember, your savings pays for the solar system itself PLUS puts additional money in your pocket. That additional money is a large amount compared to what it costs to remove/re-install the panels to put on a new roof. If you need to get a new roof, your solar savings, even after the solar panel removal/re-install likely more than covers you getting an entire brand new roof.

“You have to have a battery, which is expensive and doesn’t last long”

No, you don’t have to have a battery, but it is an option that some people want. They want a battery to run their home when the power goes out. Up until now, I have discouraged everyone from doing so, as I felt that batteries were too expensive and didn’t last long enough. However, as expected, batteries have been getting much better, mainly driven by huge investments in development for electric cars and the solar industry has benefitted as well. This past year has seen some great breakthroughs in battery technology that has given them more power, more initial motor start up capability, longer warranties and at the same time, lower prices. Also, the 30% federal tax credit applies to batteries for residential use.

One 10 kWh battery is basically an “essentials” backup, able to run 120 volt appliances, approximately 4-5 circuits that are 15-20 amps each and it runs those items for part of a day, needing charged the next day by the solar if the grid is still down. When you get 2 - 10 kWh batteries, now it can add the capability of running 1 - 240 volt appliance such as a well pump or a small central AC system and might be able to run most of the home for most of the day. If a person only cares about running one refrigerator and a few lights, charge cell phones, etc., a small gasoline generator is still the better decision. Batteries with solar is mostly for people that want quite a bit of their home backed up. A battery can also help with savings with a utility that doesn’t offer a full 1:1 net metering and instead offers as an example 4 cents per kWh credit for what’s sent in to them. In that scenario, the solar charges the battery each day and at night, the battery automatically takes over certain circuits in the home instead of sending energy in to the grid for the lower compensation. In that case, a battery can pay for itself with the savings and also be there as backup for when the grid goes down. Most people don’t need a battery, though. It’s an option, with perhaps 20% of homeowners purchasing it.

“I heard that it’s like $60,000 for solar.”

Solar systems are all different prices because they’re different sizes. Some may also include additional items in the price like a new main panel or upgrade, a sub panel, attic run instead of metal conduit running across the roof, a ground mount which is a higher price, etc. Also, the price someone is saying may have been an old price when solar cost a lot more. Additionally, most people forget about the 30% federal tax credit, which is essentially a 30% discount, so the price they say doesn’t take into account they got that. Further, cash deals get the absolute lowest price, and there are currently over 200 options for finance plans. With different finance options comes different lengths of the loan in years, different interest rates and varying finance fees.

In my presentations, I always show several options based on questions I ask the homeowner. Some people want to pay it off as fast as possible, while others may want to pay just the minimum monthly payment over a 25 year period. The TOTAL amount on a system financed at 7 years for 7.99% vs a system financed at 25 years at 4.49% is vastly different and part of my job is to help you know which one is best for your specific financial situation. I have options between 7-25 years with different interest rates. A person really has to see the numbers in person on different finance options to fully understand how it affects the monthly payment, total amount paid and savings. If someone tells you that they paid a certain amount for solar, that really doesn’t tell you much. The price may not be recent, they may not be taking into account the 30% federal tax credit, they might be adding interest for the full 25 years when most people pay it off in 8 years, they may not have the right size system or they may have been scammed. Very few people are actually paying $60K for a solar system, that would be a huge system for a huge home with a huge electric bill and even then, the savings would be huge as well.:)

“How many solar panels did you get?”

The answer is actually meaningless to others, as everyone uses a different amount of electricity, has different roof space and directions, shade, panels come in different wattages and therefore needs a different size system than you do. Two identical homes side by side will not have identical electric bills. There may be more or less people in the homes, some may go on vacation a month every year, one might cook at home while the other orders food, one may have a dirty job and do more laundry, the list goes on and on. So, this question is not a good way to judge anything.

Political: Solar is unfortunately political. Some news channels are against solar because they say it’s part of the “Green New Deal” of Alexandria Ocasio-Cortiz (AOC), climate warming, etc. So, you may hear very biased information about solar from places like that which is more their opinion than fact.

About Adam Schmidt

I took the time to write this to educate people about solar because there are so many misconceptions, lies, etc., out there. I don’t really consider myself a salesperson, but rather an educator. I thoroughly enjoy meeting new people, looking at their situation and seeing how I can help them. I am blessed to love what I do. I really do believe that it’s not if you go solar, but rather when, as solar is getting adopted more rapidly each year.

I have always been 100% honest in business and have the utmost ethics, even telling a person they shouldn’t do it when that means I make no money. Money is a requirement to live, but it isn’t my main priority, rather helping people and treating them as my family is what this is about for me. I get satisfaction from my customers becoming life long friends. And these people are happy to recommend me to their family and friends, referrals are actually where most of my business comes from.

I love solar so much that I have also trained dozens of people how to sell it honestly and ethically. I will only train someone if I can tell they’re a good and honest person. If you are interested in selling solar, get in touch with me. As of this writing, I am 59 years old, have been self employed since age 18 with the exception of a couple of years when I did both my own work and was also an employee at the same time. I’ve owned numerous businesses, employed many people, and absolutely love it!

I’ve been married 21 years to my incredible wife, Ellen, who is also a cancer survivor. We have an adult son, Clayton, that we are very proud of. And we have 5 cats in our home! Lol. Yes, I absolutely love all animals, but especially cats.

I am the owner of Adam Schmidt Solar, LLC. in Florida. This is a solar consulting business and allows me to choose the best solar install company for my customers. And after representing 6 solar companies in previous years, leaving 5 whose ethics didn’t align with mine, I have been with Powur, PBC. for 5 years now and plan to be representing them for the rest of my life.

About Powur, PBC.

Powur is a Public Benefit Corporation and a B-Certified company, which basically means that they balance profit with helping others. Powur helps many organizations around the world with clean water, planting trees, even building several homes each year in Mexico for good families with low income and puts solar on it. The executives at Powur are always involved with building the homes in person and Powur pays for the top salespeople to go there to help as well.

Powur has over 7,000 solar consultants nationwide. I currently rank 123rd in sales out of those more than 7,000, putting me in the top 2%, and I got there by not being pushy or lying, but rather educating people and always with total honesty. I am truly blessed and humbled with all of this. I believe in Powur so much that when opportunity came to invest in the company, I put my own money in. The company plans to go public in the near future and recently topped a billion dollars in total revenue, most of which has been from the past 3 years of the 11 years they’ve been in business. Powur is currently in 25 states plus Puerto Rico.

Powur has grown so fast in recent years, that it is currently the single fastest growing residential solar company in the country! And on the Inc. 5000 list, it was number 43 last year out of many millions of privately owned businesses. I attend several national conventions each year and continue my solar education by joining in on several company webinars every week. The solar industry is always changing and I want to be sure that I know the latest. I’ve met top executives in the company and have seen up close what good humans they are. I don’t want to ever retire, I want to keep helping people go solar as long as I am physically and mentally able.

By the way, I pay $1,000 for referrals and have more than 100 people currently that refer me. If you want to be paid $1,000 for each person you refer that goes solar with me, simply register at my website www.easy1000dollars.com and enter their info there. I help families in 25 states go solar, so if you know anyone in another state, I may be able to help them and you also get your $1,000.

My main website is www.yes2solar.com and I'm always happy to talk solar with anyone and put together a solar savings report for your specific electric needs at no charge, no obligation, no pressure, but always with 100% honesty.

God bless,

Adam Schmidt

352-502-4395 - best to text me first

Adam@adamschmidtsolar.com

And as promised, here are links you can check out for yourself so you can see facts...

Ocala electric rates increased 23%. (Actually 29%, by my math)
https://www.wcjb.com/2022/05/18/utility-rates-are-set-increase-up-23-ocala-residents/

Duke, FPL & TECO all raised rates.
https://news.wgcu.org/section/business/2023-03-08/rate-hikes-approved-for-tampa-electric-duke-energy-florida-and-florida-power-and-light

Duke raising rates.

https://www.fox13news.com/news/teco-duke-energy-customers-face-higher-bills-as-utility-companies-ask-florida-to-approve-more-rate-hikes

More rate increases for TECO customers.

https://www.baynews9.com/fl/tampa/news/2023/01/25/another-increase-possibly-coming-to-your-power-bill

Texas utility rates up 70%.

https://www.chron.com/news/houston-texas/article/Texas-power-grid-electricity-cheapest-plans-rate-17217426.php#

Connecticut utility rates up 40%.

https://ctexaminer.com/2022/11/03/eversource-customers-to-see-40-price-hike-for-electricity-20-for-gas/

New England rates up.

https://www.wbur.org/news/2022/09/08/new-england-electricity-prices-natual-gas-utility-auctions

How long do solar panels last?