click to home pageHOW TO MAKE MONEY WITH SOLAR ELECTRICITYclick to home page
With the state and federal incentives solar electricity is no longer a burden, in fact it is actually profitable.
First of all there is no doubt we have to take better care of our planet.
In the 8th grade I had a science teacher Mr. Yamamoto who was an advocate of ecology. His influence has affected me and ecology is high on my priorities. As a surfer and snowboarder I love the outdoors and take pride in trying to take care of it.
Solar electricity is not just a home improvment it is an investment and a way to help the ecology.
In business I have had to be an expert in investing. I started my business with $150 and that $150 has generated tens of millions in revenues. I try to put my money where it helps my business while helping the ecology. For instance if I’m going to advertise why not pay for litter clean up on the 210 freeway. I get a 20” sign and am paying for litter removal. It is not the most cost effective advertising but I feel good doing it. We have to pay for trash service at our shop so why not pay a little extra and have a dumpster for recycling. This allows us to recycle our paper and cardboard without the guilt I would fill putting it into the landfill. To install dual pane windows we have to take out parts of the old windows, we spend a great deal of time stripping the aluminum from the windows and take it to the recycling center. The recycling of aluminum almost pays enough to cover the labor. To me doing these things may not make me more money but even when times are tough I have a sense of pride in what I do.
Solar electricity power can give you a sense of pride, you may save a little money doing it or you may save a whole lot.
What is it? In the 1980’s solar water heating was big, this is not the same. Solar electricity is produce with no fluids and no moving parts. The solar electric panels are much thinner and better looking then the water heater panels. They don’t leak or need maintenance. They are required to carry a 20 year warranty and last longer then that.
The material that produces the electricity is Silicon Crystals. These crystals react to the irradiance of the sun. The sun shines on them; molecules in the crystals move and make electricity.
The power from the array of solar panels is produced in direct current. The DC electricity needs to be converted to alternating current so you can use it. This requires an inverter. Basically an inverter is the same as the little transforms we all use to plug in our lap tops and charge our cell phones. The difference is transformers change ac to dc and the inverter changes dc to ac. The inverters handle a lot of electricity and eventually need to be replaced. They last about half as long as the solar panels. The ones we use have slide out components so you just replace the part that wears out. The inverter also has a cool LED screen that shows you how much power you have generated. This information and other information is sent through the internet and is monitored by a company we use.
The power that the whole Photovoltaic system creates is connected to your house on your side of the utility company’s meter. When the PV system generates more electricity then you are using it runs your meter backwards. The sight of this always deserves a smile. Can you imagine if your fuel efficient car could run a gas pump backwards?
Here in Southern California our electric usage is lower in the winter and higher in the summer. If your PV system is the recommended size it will pump electricity to the utility company in the winter, spinning your meter backwards, this gives you credit that you will use in the summer.
The cost of the system obviously is the determining factor of weather to put a system on your roof. The perfect candidate would be someone who has a bill over $150 a month, has a south facing roof with no shade and has investment cash. If that person took the money to buy the system and spread it out over the life of the system they would see $100 in power for every $46 they spend.
If you have to use an east or west facing roof you lose just 15% of the efficiency. Shade from trees, buildings, power lines and vents, also reduces the power output. If you have shade a shade analysis should be done.
What about leasing solar? Leasing solar has become very popular. There usually is no down payment and your monthly payments are often less then what you would have paid to the utility companies.
It is very good if you stay in your home for 15 years, it is like buying a system with a 15 year loan at 8% apr. This isn’t bad since you saved more then that in electricity. Unfortunately unlike a loan if you want to pay it off early you still owe for the whole 15 years of lease payments.
Since most companies leases compound at 3.9% and are for 180 payments, on day one you owe 180 payments. Halve way through you still owe 90 payments. If you have a $100 lease payment and it compounds at 3.9% you owe $24,000 in the first year. Essentially you have up to 15 years to pay it or until you sell your house.
Our lease program is a little friendlier then other companies’ to those who want to sell their home. We recommend that you look at our spreadsheet so you understand the buyout.
If you buy the same size system instead of leasing it you can sell it anytime and you would have spent $11,000 (with current incentives).
Lease or buy, the system is worth $22,000. The reason you can buy it for $11k is because of the rebates and tax credits.
What is the investment value? If you can invest your money in a way that benefits the ecology would you like that? If it turns out to be the best investment you ever made would you like it even more? Buying the system for your home is a great investment. If you buy a pv system for your home the return is often 14% per year plus the value of the system. If you bough one today and sold it after the rebates and incentives end you would almost double your money and would have been paying less on your electric bill. Or if you just use it and stay in your house you still make 14% return on investment.
Before you buy you can get a print out that is used for the State rebate, this shows details such as projected use and power generated. In addition our proposal shows return on investment and how much ecological impact it will make, how many tons of pollution you prevent and other helpful information. The power output reports are often audited by the state, it has to be accurate or our company would be penalized by the state.
Buying solar is like no other home improvement or investment.
Owner D.P. Door Company and DP Energy Store Inc.
Claremont and Rancho Cucamonga 909 625-6000 License #562348
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