Solar Panels Installed and Operational

Yesterday we finally got our solar panels installed. The timing was great because today has been really sunny. It is like the sun is beaming me down money. The purpose of the solar panels are threefold, to save money, to help the environment (part of loving our neighbors), and to enjoy the technology. 

Technical Specs of my solar panels 

• 18 Panels for a total of 5.76 KW 
• This is 24 amps at 240 volts. 
• My Nissan Leaf has a max charge rate of 6.6 KW or 27.5 amps at 240 volts
• This should provide 2/3 of my electrical needs for the year. 
• 18 Panels fit nicely on our south facing roof
• I can expand the system if I want. I might build a solar pergola in the future especially if we buy a second electric car.
• Ohio Power Solutions estimates the panels to produce 7972 kWh annually 
• Ohio Power Solutions installed the system in one day.

Location

• I live in Xenia, Ohio. The math behind solar panels varies greatly by state, no only for the amount of sunshine but the way your electric utility bills you. Ohio residence are billed a flat rate per KwH or electricity as simple as that. Other states have variable rates depending on the time of time. Ohio also allows net billing so any electricity generated by my solar panels that I do not use runs backwards through the meter and into the grid and is credited to my account. My neighbors will use my solar energy and the coal and natural gas powerplants will run less. 

Finacial

Solar panels are a bit pricy this system cost us $16,468. But there is a 26% solar federal tax credit for 2020, this will bring to cost down to $12,363. The tax credit is not refundable but can be spread out over several years, so most people would be able to adventually use the whole credit. I was able to work with payroll and recude my taxes from my paychecks soon after I signed the contract. I have already saved $1000 in taxes. 

• Investment numbers
• Save roughly $60 a month on the electric bill
• Break even in 12 years
• 8.6% IRR 
• 5.8% if I spend the money on something fun and didn't reinvest it.
• Assuming 10 cents a kilowatt hour and 4% electrical inflation. Ohio has had really low electricity rates for the last 10 years. I feel we are overdue for some upward price adjustments.
• The panels should last 30 years and going into retirement it is always great to have lower expenses 
• A quick google search shows that the stock market has an average return of 10% so I take about a 1.4% hit with solar panels, but I gain consistent returns and increased cash flow. The stock market does have considerable risk. I also help reduce the amount of carbon in the atmosphere which is so very important to the well being of our neighbors and all the people of the earth.

This is a quick overview of the panels. In the following days, I hope to post more about the technology and the environmental impacts of the panels. Thanks for reading.