Is Solar worth it? My Experience 2 Years Later

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0:00 Intro
0:20 System size and cost
1:33 2 years of data
4:32 Current electric bills
7:45 Time to break even
8:55 Unforeseen savings
10:20 Is it worth it?
11:34 Solar system
---------
MUSIC
Space Trooper by DivKid
Ending song is The End by EVA.
open.spotify.com/artist/6UIs5...

[@SmartHomeSolver]

So what do YOU think...is solar worth it? Compare solar quotes with EnergySage here: www.energysage.com/p/smarthomesolver/? Thanks to EnergySage for sponsoring a portion of this video.

[@thomaswilkerson9961]

Natl. driving mi. avg 15k Natl. car avg 25 mpg = 600gal x$4 gal fuel $2400 fuel saving - Elec bill $2400/ year $4.8k in savings/yr.!! So a $30k investment 6.25yrs to brerak even? Smart move my friend 👍

[@maxmustermann194]

As a European I can only dream of your surge prices. Our normal price here in Germany is 30 c/kWh.

[@jaap7374]

How can Home Assistant be used to further optimize your energy management? Could you pre-cool your house when there is a surplus of solar or pause charging and reduce cooling during price peaks to support the grid? Do you use window covers to improve isolation and reflect sunlight when/where it's most needed?

[@user-pn6qq1zr3x]

No

[@wheresswitzerland]

Can you go into detail about the batteries?

[@bennettmewes]

Of course your electricity bill is $0... you paid $48,000!!!!!!!!!!!!

[@traskth]

But one time. Pays for itself eventually

[@chulito1981357]

So 😂😅

[@traskth]

Just saw the clip, and i got sucked in. Nice job Reed

[@wojtek-33]

​​@@traskth At 48k, it would take me 26yrs to pay it off here in Texas, where electricity is cheap. That's assuming 0 maintenance. That ROI isn't very good. Texas isn't very solar friendly either, you know...big oil.

[@polymossimal]

@@traskththe word eventually is carrying a lot of weight

[@boblatkey7160]

I did my homework and invested in EFFICIENCY FIRST. Then I bought my own solar and battery system from a wholesaler and I installed it myself with my background as an electrician. I paid about $13,000, took the 30% tax credit on that, and my solar system with batteries saves me over $2500 per year. Return on investment is less than four years and I can go for weeks with the power out and the only thing that goes down is my hot tub.

[@UnCannyValley67]

AND you probably get laid more lol😂

[@natearrigoni]

This is a way better representation of solar. Costs will be a bit higher with added Labor but not Tesla levels. And his ROI is really high as well, 13 years is like what we got in 2005.

[@michaelsleen]

I’ve had solar for six months now, and am so happy with it. We have $0 electricity bills, and saved even more money by going solar through a co-op. Great to hear about your experience after two years!

[@DB-ek5kd]

Have any hail yet?

[@DaKooler]

Dude, Those numbers are crazy to me. I live in denmark, in an average house, and i use 2300kWh in a year! You use 30kWh at night, and thats almost a weeks use of electricity for me.

[@jasonpwright]

Most of his electricity use is AC. Does a typical home in Denmark even have AC?

[@Mistermaker09]

@DaKooler I thought the same thing D: @jasonpwright I life in germany and my flat has natural gas heater, but the consumptions is being converted to kwh. Last year I used about 4000 kWh natural gas. So I have to pay 3500€ per year for heating and electricity

[@JBoy340a]

Is it 90F at midnight and 110+F at 1PM at your house. It is in Arizona all summer long.

[@owenashcroft8167]

You've got to include EV charging, we have 2 Teslas and that makes a massive difference in the amount of electricity used, it's cheaper than a normal car, but the figures on the bills of kwh used is quite scary

[@sR1k]

In Arizona, temperatures are over 90F/32C for major part of the year. I'be been here for 2 years and I felt that summer starts April 15th and ends October 15th. This accounts for the majority of electricity costs.

[@Ziedo]

One thing people often forget is the opportunity cost of interest on the up front cost. If you invest the $31,000 (48k-rebates) at 6% interest you get $155 per month to start. By my calculations it's 25 years until break even. This assumes $200 savings/month with solar, compounding interest, and no maintenance or degradation. Of course it's difficult to put a number to the comfort of not worrying about electricity. Also possible rate increases in excess of inflation.

[@Olker8]

Rate increase is the kicker. I’m sure it goes up at a similar rate. If not higher to any interest you could get

[@ryanmattie974]

I love how the troll post in your video used Paul Hibbert's picture lol

[@donaldhoudek2889]

Bill Shock!!!! This is the first year in the last 12 that we are home during the summer months and not up in the GA mountains. My electric bill last month was $336 where as it never went higher than $150. We normally averaged between 18 and 30kWh on average, but last month we hit 54kWh on a lot of the days. I will be starting my DIY solar installation next month and it will be completed in 3 phases. Can't wait to get started! Great video!

[@JoshsSmartHome]

Great video Reed! We installed Tesla Solar 23.085 kWh of panels and 4 Powerwalls this year. We've really been reaping the benefits since the install.

[@adstix]

Protection from the grid's unpredictable outage is, in itself, priceless especially in the era of cyberattacks and freak weather patterns! Also, I'm thinking the property value may be somewhat enhanced! But the overall peace of mind is, no doubt, incomparable! Thanks for sharing @SmartHomeSolver

[@quorn23]

I love the setup of it all, now all I need is a house, enough sun and a bit of money for it all

[@evlnte]

One thing not mentioned is when the utility and local government are ‘run by crooks’ factor. When I bought my system, the lowest my bill could be was $9.87. But since my State has a gov’nt authorized monopoly, they raised the minimum bill to $28.97 for everyone… and blamed solar customers for it. So check out how your local utility is run and how rates changes are approved.

[@ItotheCtotheE]

Vote in different people, or run for office on a platform of not being a crook.

[@CCCC-tq8yo]

A cook? ​@@ItotheCtotheE

[@leebannister3759]

Yeah, this is happening now everywhere. They are saying it costs money to transmit you solar energy into the grid. Total BS

[@knightlancer97]

​@@leebannister3759There is some truth to that. If you pay nothing to the electric company, less money is going to maintain the tranmission lines, add new ones, etc. The cost of maintaining those lines doesn't go away when you switch to solar. This shifts the cost to people who don't have solar which I don't think is fair as not everyone can afford solar.

[@jamesmonahan7872]

Great video - Thank you for sharing your experience. As someone just looking for solar this is very helpful

[@SmartHomeSolver]

Glad it was helpful!

[@Joseph-mu1zb]

My man is simply living the best days of his life.

[@TheDougOfTheNorth]

It's definitely worth doing the math. I bought a home with solar a few years ago and inherited a financing bill but also energy credits (Long Island, NY). However, since adding an electric heat pump to reduce 95% of my oil bill and a hot tub, I started burning through credits. So I had a talk, did the math, more talks, and am in the process of adding more panels and aim to be net positive with future proofing. Couldn't justify the Tesla walls but wanted one. All in all, once again, worth having a discussion and doing the math.

[@rivjr007]

Love the Hibbert ref!

[@brentkleinman6926]

Not stressing about paying to much for the electric bill is worth it IMO 🎉nice breakdown reed!

[@benhaze1010]

Always loved the humor in your videos! Very interesting; thanks for sharing. In the Great North unfortunately Solar does not cut it; we need way more energy to heat our homes than AC demands and we have obviously less sunlight.

[@ronm6585]

Thanks for sharing Reed.

[@lackr0073]

Great video Reed, my next big project is going to be a solar system, $350/month is painful, this video is really helpful!

[@SmartHomeSolver]

Thanks! Glad to hear it was helpful!

[@MisterWealth]

How long until the tesla battery storage starts degrading and those need to be replaced though?

[@SoCalVTR1000SP2]

Great Video for Newbies 2 powerwalls and 2 SunPower Solar systems (31 panels) over here We outgrew our 2014 system and installed an additional system in 2023. My only wish was maybe a 3rd powerwall and more panels? We're good for now. It took a little bit to coordinate with SunPower and Tesla to get the monitoring all dialed in. We love it. Our system covers 1 ev eeezy peezy. I don't use the Only Charge EV on Solar option, instead I already know how much the EV needs to charge every night so I set the reserve accordingly. I only use the grid to charge the EV and keep the 2 powerwalls just for the house if that makes any sense. Thankyou for the videos and keep them coming Reed.... What part of AZ are u at ?

[@SmartHomeSolver]

Thanks! Yeah that makes sense what you are doing and that's great. I'm in the south east part of the valley!

[@Phelper99]

I paid around what you paid, I only got 1 power wall. One thing about break even - now t hat I generate my own power, I use a ton more (for free). No more setting the thermostat to 80 when I'm gone. I use as much of my power as I can, I dont get credited for my excess.

[@adamjj85]

You also don't need a generator since you have battery backup. More savings right there!

[@JohnStraussmusic]

great video . Solid arguments. To me it sounds like you made the right choice. Thank you for explaining the numbers in a clearer more realistic way. Other videos get to complicated when it comes to the numbers

[@JBoy340a]

Great review. I wish our Tesla Solarroof generated what your panels do. But, we have a massive (50'+) tree in the backyard just South of the house and the tiles are not the as efficient as your panels. Still we get to net $0 for electricity all year round, even with the high PG&E rates. We find that solar with batteries is one of the best upgrades we did to the house.

[@obijuan-]

Reed, I am with you. Me too. I've generated 126 MWh and I have 4 Powerwalls. I live where a single Kwh is 42 cents

[@daneflanigan]

Great video, I always enjoy your breakdowns. One calculation you don’t have is home appreciation with solar.

[@SmartHomeSolver]

Thanks! That's a good point!

[@iansanchez1470]

There are SPAN Smart Circuit Breakers so you can control it on your phone and if the Powerwalls go under 20% Battery Backup during a power outage, you can turn off, for example, Air Conditioners or Refigerators to keep the house on

[@jaap7374]

That's a gigantic amount of electricity use per year. I didn't realize a single house could use that much, even with multiple electric cars. I know power is a lot cheaper in the states and there is more sun, but it still seems a lot can be done to improve the energy efficiency and reduce energy use. For reference, houses here in the Netherlands have triple-layer glass, wals, roofs and floors which are well over a foot think and have multiple layers of isolation.

[@ElectrcRadiation]

A large chunk of that cost goes into AC costs. It's lower in the upper states, but Arizona is known for being very hot for a long portion of the year, so the AC is running a lot.

[@BassLiberators]

Yeah I thought our bill in Australia was high at $90 per month, $200 per month is another level.

[@ericlancaster2889]

Arizona is ahem, slightly hotter than the Netherlands bro.

[@jaap7374]

@@ericlancaster2889 Netherlands is slightly colder. It doesn't matter that much if you need to heat or cool 20 degree C. Both have the same thermal and heat pumps are the same technology as AC. The main difference is the time between summer and winter which is pretty mild here. It's all more reason to build better insulated housing in Arizona.

[@shubinternet]

Yeah, it’s a lot harder to throw out virtually all the housing in the U.S. and replace everything with housing that is built to PassivHaus standards. You’re also much further north than most of the U.S. So, of course your houses are much better insulated, with much better windows, etc…. And you don’t have to worry about running massive air conditioning units throughout much of the year. But I lived in Brussels, Belgium, and in a house that was built in 1910. And if Europe keeps getting heat waves like some you’ve seen in the past decade or so, you might have a larger percentage of people dying from heat stroke than you have historically had.

[@raymondmichelo4016]

This has given me ideas 💡 thanks for the insights

[@BenMagargee]

I've been looking into solar here in Ohio while there's 1:1 net metering offered. It's interesting that I got roughly 13 years for the system to pay for itself as well(not factoring in probable electric rate price hikes). On one hand, there are definitely better ways to invest the money, but it would be nice to have one less bill to worry about. Thanks for sharing your experience!

[@tonyharion9816]

Doing the revert math pondering in my current monthly energy bill here in Brazil, the U$D 48 K would result in a 80 to 100 years payback time (not considering interest nor compound interest). What a whopping different world we live in. Thanks for sharing your rationals. ❤

[@rhspierings9011]

What is the average amount of Solar radiaton during Summer and Winter in your Region?

[@itswillcurran]

I’m about to move out to Glendale. Is there any SRP plan where solar makes sense without batteries? I was thinking about starting with panels and adding a FranklinWH battery later. I’ve heard they force you into that solar plan you have.

[@shen714]

Solar energy is a fixed cost in a world where everything is getting more expensive.

[@SmartHomeSolver]

True!

[@ThatsPety]

Exactly, this is the part everybody is missing. You're doing the math with today's electricity rates. But prices go up over time, and it just makes the math more and more favorable

[@whophd]

Whereas TIME SHIFTED solar energy is a dynamic INCOME in a world where home owners are allowed to participate in the real energy market. (I’m a bit shocked you’re still paying anything for grid access … with 3 PowerWalls it should be negative unless you are feeding an EV - outside of summer daytime charging)

[@Nosjamesmenzer]

Hey Reed I am wondering if your willing to do a video on How you can integrate Solar system into home assistant and be able to have it monitor your electricity usage and let's say you system was to go to a certain percentage during the night how home assistant would start turning things off that are not needed to run ?

[@SmartHomeSolver]

That could be a good video, I’ll see what I can do!

[@Appmyhome]

Good clear explanation. Here in California the PGE rates are insane. So maybe your system would pay off faster. Unfortunately the state may allow the power companies to charge a sliding connection fee to the tune of 30 to 100 dollars. Plus no net metering.

[@kiloy1006]

Thank you for all the numbers. Now I am clear that I dont need solar. 13.5yrs... since i wont be taking the system when I move to new house, it is hard NO. Again, great info!!!

[@JBoy340a]

Don't forget to speak to your real estate agent and see what additional price your get for solar in your area.

[@agentred8732]

It can add value to your home

[@kiloy1006]

@@agentred8732 it 'can' add value, sure. Realtor says the same thing. 30~40k is pretty big chunk to me to invest that 'can' add a value. Especially when I talk to people in my neighbor and think that all those inverters and battery packs are eyesore.

[@anekinoo7]

13.5yrs payoff doesnt include interest rates. Most buyers need loans and interest is 10%. $30k at 10% for 15yrs is $322/mo. Total cost of loan with interest is $58k. Payoff for loan will be 26yrs.

[@natearrigoni]

This guy bought the most expensive solar gear for his crazy power use. This isn't even close to representing what solar could save you or what even high energy users would need. 13 years is insane in 2024. 2-5 years is way more realistic.

[@llN3M3515ll]

Totally agree it's worth oversizing, especially if you have any inclination of additional use.

[@antasp9581]

Sooo how long will the equipment last before it needs to a costly repair or service? Im assuming this will happen before the break even period which would extend that period further. How does this affect your roof and your insurance on it if there are leaks?

[@natearrigoni]

IF you cycle your batteries between 80-20% they will last 10 years or more at full capacity, after that you lose like 20% capacity (maybe) for another like 5 years. The panels will last 30 years or more if you keep them clean, like most things. His ROI is also insane.13 years is so far out there for 2024. But it seems like he needed more power than most suburban streets do. My ROI is 2 years, my rates are also 2x his and I downsize my energy use. Look into it, solar is very regional but his numbers are out there for sure.

[@smallmj2886]

Here in Canada people say that a solar setup will usually break even in 10-12 years. But that is without the battery side of the equation. Things vary a lot from place to place though. In my area there are currently no time of day rates or demand prices so batteries only make sense for power backup during outages.

[@rasbe6863]

Thank you Reed for a good video. People just don't understand that aren't from Arizona. What the temperatures and what it takes to cool a house when it's 115° outside. I have Tesla power walls in my house also and they work awesome. My system cost me $15,000 up front but in the 3 years we've almost paid it off with savings. Keep up the good content

[@SmartHomeSolver]

Thanks! I’m glad you understand haha. Wow that’s awesome you’ve almost paid your system off with savings!

[@rmills678]

Have you added spray foam to your attic to use even less energy?

[@lowerleftside]

I would love to see the numbers that are not including the Tesla tax on the equipment. Going with a different system could be a significant benefit.

[@mrxmry3264]

would i be right in assuming that at night the outside temperature is lower than the inside temperature? if so, you could cut down on (or even eliminate) your air conditioning needs by using phase change material. during the day it absorbs the extra heat, and in the night all you have to do is bring in some cold air from outside to get rid of the heat and prepare the phase change material for the next day.

[@SmartHomeSolver]

Haha I wish you were right! In the summer here in Arizona the outside temperature doesn't go below 100 F until 10pm sometimes. And the temperature never gets below 90 F. So we have to run the AC at night. It's so hot here.

[@mrxmry3264]

@@SmartHomeSolver is that "F" for "Freedom units"? :-) but yeah, if it's that hot, PCM wouldn't work. but have you heard of those cooling panels from skycool systems? i keep hearing they radiate heat into space, and that they cool down several degrees below ambient even in direct sunlight. if my numbers came up, i'd check them out.

[@emmgeevideo]

Staying connected to your energy company is not "dumb". The only way you can sell your electricity back to the grid is to be connected to your energy company.

[@whophd]

Yep the grid NEEDS YOU! and will pay for it

[@dr.projectx5142]

So I do wonder was the solar and battery financed for that initial price before incentives? Or was the powerwall a later install that was later added to your system? I would be interested in know how it worked out. As I saw your video that not bad. Is all your appliances electric? Stove, dryer, water boiler, furnace?

[@ricgordon3716]

Paul, always enjoy your videos, thanks for the good work. I was actually chatting about this with some mates over the weekend and one of the big sticking points was the usable life of the batteries. Someone mentioned the batteries would need to be replaced every 7-9 years which would make a pretty significant impact on the economic analysis. How did you factor that into your calcs?

[@skaterdude14b]

What automations / systems do you have for food delivery?

[@redealexander8951]

So they charge you to be connected to the grid so you can sell them energy?

[@joebower1417]

That’s pretty interesting, I have a 12.4 kW system as well, but only one inverter. Do you know why you went with two? I wonder if that’s why you generate more power also. Last year I did 16.6 MWh. But I’m also in Ohio where it is measurably less sunny lol

[@SmartHomeSolver]

One of my inverters is 7.6kW and the other is 3.8kW I think. Your inverter could be bigger and handle more.

[@lasaldude]

Great video man but fuck living in Arizona. Living in southern Utah near Moab was hot enough. lol You got a pretty good system there. do you know the efficiency of each panel? Is it 20-ish% i'm guessing. Because the average 0.5% reduction in efficiency each year can add up after awhile. I'd like to know the amount that is projected to make after 10 years with the efficiency rating going down. plus keeping the dust off the glass too is a factor. Thanks again.

[@ericapelz260]

We put in a similar-sized array with no batteries our calculated payback is 6 years. 0$ bills from April to October in Northeast Ohio with two electric cars. It's kinda grey here in the winter, so we do pay a little for part of the year. (we saved a lot by installing it ourselves. The electrical inspector said he wishes the pros did as nice a job as I did.)

[@LoavesofBread]

If your break even is 11-13 years, when do you need to replace the solar panels? Are they still around 15 years?

[@NateBraska]

Most panels have a 25 year warranty. The inverters are 12.5 years for Tesla (at least it's are).

[@venom5809]

@@NateBraska I assume it's a pro rated warranty. No way anyone is straight warrantying something for 25 years.

[@NateBraska]

@@venom5809 it's pretty much a "if complete failure". Technically it's supposed to have a expected loss each year. I don't think it's prorated, why would it be? I expect them to replace them, pending the manufacturer and specific warranty. For panels/modules went with QCell but considered REC. I also went with the Tesla Inverters to keep them at ground level (vs micro). The Enphase have good ratings, and micros their own set of pros/cons, but at least 2 legit installers didn't recommend them because their 25 year warranty is only for the part. They only have 2 years for labor included in that, and since they are installed under each panel, the labor will likely not be trivial. The String vs PO vs Micro debate is a big one, and unique to each install, so I don't mean to bring that up. There's just a lot of factors when deciding. My estimated payback in ATX was about 13 years as well (Austin Energy has a really dumb billing/credit setup). Signed my install contract before the end of 2023 but only just had them enabled about a month ago. Partially on the installer, mostly on the local utility (shutdown, inspection, etc lead times)

[@NateBraska]

@@venom5809 I had typed up something longer and thought it sent. I choose between QCell and REC panels. Pretty sure both have a 25 year performance warranty. Easy to look up online.

[@ThatsPety]

​@venom5809 I don't remember exactly, but i think they guarantee a certain level of efficiency for a certain period of time. For example, they might say "30 years from now it will be no worse than 70% of the efficiency it had when it was new" or something like that, and that's the promise backed by warranty I'm just talking from memory though so I could be wrong

[@Bigglare]

Can you easily add a small wind turbine or two to your system?

[@SmartHomeSolver]

I could be possible but I don't know if it would be easy for me. I would probably have to get approved by the city/power company and HOA. If I lived somewhere else like way out in the country it might be less of a hassle.

[@pletcgm]

Certainly! Here's an improved version: --- The $48,000 estimate is probably from a solar company handling the entire installation. However, based on my firsthand experience, installing solar panels isn't difficult. We have solar panels at our weekend house in West Tennessee. Initially, it took some time to get the local utility to permit individual homeowners to install their own solar systems and connect to the grid after an inspection. Now, it's possible. I'm planning to install solar panels at our main house near Nashville within the next two years. Doing the installation yourself can lead to significant cost savings. It's not as hard as it seems.

[@Luisp_1024]

Did the $48K include the battery packs? That’s actually not bad. I ended up paying about $48K and no battery backup.

[@SmartHomeSolver]

Yes it includes the 3 Powerwalls.

[@stevenshircliff393]

Outstanding, well put together video! I live in KY. Don't think feasible for me. We don't get near the sunshine you do.

[@JBoy340a]

You don’t need clear skies to generate power from solar. Some of our highest peaks are partially overcast days where the sun peaks through broken clouds. I would likely have solar if I still lived in Virginia with afternoon thunderstorms

[@Jay-Dee]

It's easy when you have net metering. Here in Belgium I pay €0.48(incl tax) per kWh used and retrieve prox €0.04 per kWh for pushing energy on the net. Above that we are taxed on our peak bandwith. So, if your peak demand is 5KW you pay prox €250 extra than if you have a 2.5kW peak demand. I have my rolling average peak demand atm at 3.2kW due to solar panels and 10kW battery

[@bulzaiguard]

Yes it's a pain here in belgium

[@patrickd9551]

The only reason they have net metering at the moment, is simply because they can upcharge the non-solar customers premium for the over production. So it's a net win for the energy company. This changes however when more and more people are going the solar route and decreasing the value for the energy company. And guess what, they don't like to see their profits vanish :) Not that it's any better above north from you :) we are currently dealing with all kinds of upcharges to the point that I'm not going to invest in solar any time soon.

[@thomaswilkerson9961]

I will no longer complain that my price increased to $0.14.

[@scotthall1381]

@@patrickd9551 SRP doesn't have traditional net metering. You only get it if you agree to a Demand plan where they charge you a fee for your largest 30 minutes of energy demand in a given month, if you don't get batteries Solar in the SRP territory is almost worthless because with demand charges you bill doesn't change from prior to solar. So with solar in SRP you get batteries to get access to net metering and super cheap energy rates. But SRP still comes out golden because either you pay the high demand charge or you use your solar and batteries during peak periods and SRP has one less home to worry about during major energy demand periods.

[@dannelson6980]

If we had those rates in Arizona, my power bill would be over $2000 a month in the summer (May through October) . The only good news would be my payback would be under a year.

[@WFORacer]

If the neighborhood has a power outage are you immune or does system default to batteries?

[@SmartHomeSolver]

Completely immune. The system switches over to batteries immediately. What’s really cool is the internet runs on a different power supply so my house keeps on running like nothing happened.

[@kartik_sinha]

I recently got silar installed at my house in India about 3 minths ago, and here are a few dufferences I noticed between the cost breakdown of your system vs mine A few things to note Our homes are much smaller than those in the states In my city we need aircon only about 4 months a year, plus it doesnt get very cold so heating costs are not a factor for us We also dont own any electic vehicle Ee went for a 3 kW on grid system so no batteries involved. The total price of the entire system was 178 k INR and after 79 k in cash subsidy it cost us 99k INR (1,200 USD). Thats pretty cheap. The system can not cover our demand in the summer but the idea is since our electimricuty usage in winters is next to nothing (only lights and other daily use appliances), we plan to build up credit in the winter months and use them in the summer months to be net zero over the course of the entire year. Based on our electricity rates and consumption, i expect out system to break even in 4 years. With a 20 year warranty on panels, thus is a steal. Free electricity for atleast 16 years maybe more. And when we switch away from petrol, installing more panels isnt that difficult so yeah, solar for the win😂

[@michaelsd284]

Thanks for the video. A couple of questions for you. Does your ROI include maintenance/upkeep fees, warranty fees, finance costs (interest) that would occur over the life of the system or just the initial costs (i.e. one time $48k or $31k after rebates)? If you paid cash are you including the potential lost income (interest or investment growth) from that cash (min of 2% compounded over 13 yrs = $9k where as max of 12% (S&P) over 13 yrs = $110k). Just want to ensure your ROI model includes all the "hidden" costs and opportunity losses. I suspect the ROI is either a lot further out or not existent.

[@SmartHomeSolver]

There are warranties for the Powerwalls, solar panels and they just come out and fix it with no extra cost. So yes it’s included. The logic of lost interest doesn’t work like you mentioned. That money would slowly go away as I pay for electricity.

[@michaelsd284]

@@SmartHomeSolver That true, so lets adding in your average monthly elect bill which you mentioned was around $200/month or $2,400 annually. After 13 yrs if you had invested the $ 31K in the S&P you would have accumulate a total of $56k while spending $2,400 of the gains each year. Of course, we do have to assume a couple of other things like the fact that you probably are consuming more elec now that you have the solar capacity and we would have to account for some form of rate increase. But then again, I would assume after 13 yrs your solar system would be rather antiquated. All this being said, I applaud you for getting mostly off the grid but as far as a financial investment going solar I do not believe you are there yet.

[@ianseiuli]

How many payments for this? Or did you pay in full?

[@AK-ox3mv]

How much is cost of changing tesla battries with new one

[@lawrencedavidson6195]

With my small DIY 2000 watt solar power, having power during and after a hurricane here in Jamaica is priceless.

[@ItotheCtotheE]

Like other solar videos, this is only helpful for people who live in Arizona, and I guess near Reid. Still appreciate the video and hearing about the experience but everything is always apples to oranges.

[@glenfaulkner8498]

Great vid, one thing that bothers me though, your array isnt symmetrical!

[@SmartHomeSolver]

Thanks! I know right! Luckily I can't really see that it's not symmetrical without flying the drone.

[@Richard_GIS]

You have also other factors like power outages that you should calculate in, so the price is high but the benefits are also these factors which speaks for the system

[@markkempton4579]

Thanks for the transparency, Reed. Do you also have a charge for electricity transmission, or does this "connection fee" replace that? Here in Ohio, we have two charges: one for electricy generation, which you can buy from multiple companies on an open market, and one for transmission, which comes from your traditional electric monopoly to cover the delivery and wiring to your home.

[@SmartHomeSolver]

No we don’t have separate fee so the connection fee must cover it.

[@tonylin6708]

Can you tell us your 2 inverter sizes and brand?

[@couzin2000]

You have a great understanding or Net Metering and how it works. I do wonder however, once you break even, will you still have the same panels and Powerwalls? If you put that much mileage on these, do you have a replacement cost factored-in? I'm reading "estimated system lifetime: 30 years" for the panels, but what about the Powerwall units? Also, something must be said about solar in AZ, which is QUITE different from solar in MA, NY or even Canada where sunshine hours are way different (about 1200hrs a year here in QC). Great video! Perfect for getting people interested in solar!

[@SmartHomeSolver]

The Powerwalls will degrade over time but I don’t drain them every night so hopefully degradation shouldn’t be too bad.

[@natearrigoni]

Batteries are the biggest issue with all solar backup systems. If you cycle them between like 90% and 20%, they last 10 plus years at max capacity. After that they lose 20% capacity and hold that for like 5 years or so. You size a system with that in mind and you should be fine with battery and panels for 15 years or more. You don't want to think of a 100AH battery have the max 1200Wh of power, it's more like 900wH. I do think a 13 year ROI is insane though.

[@taniksambo1969]

So I was told that even it's 0 dollar for the monthly bills there's a charge of the end of the year due to some kind of balancing cost? Not sure but they were not completely free with solar. This is in San bernardino CA

[@ChrisThomas-xq1ft]

LOL @3:13 - 'I use alot' as he shows numbers about 55% of what my yearly usage is.

[@adampreiser]

There is also an opportunity cost with your cash. $30k at 5% interest per year is $1,500 per year which covers a lot of the electric bill. But having solar is cool. I am waiting a bit since I am in California, and they just got rid of net metering last year. Also, they want to bill you based on income here in crazy California, so you would still have an $80 per month bill.

[@SmartHomeSolver]

That's true about the opportunity cost. One of the biggest reason we got it was to not be so reliant on the grid. We hear about some of the energy restrictions and that kind of scares me. I heard about that bill in California and it's crazy!

[@percy9228]

I actually wrote a comment above on exactly this. I'm not sure why you have 5%, index funds on average have given 10% consistent for decades. It cost him $30994, his bills are $2,273, at 10% he's actually increased his index fund to $31,820 after one year with free electricity. in ten years (for simplicity keeping the electricity price constant) he would have $42,216 in his index fund and still paying zero for his bills. In ten years his solar system would be worth half what he paid for it so say $20k. he can't really sell it. Its not without maintenance either, so he has take that into consideration. Solar panels last between 20 to 30 years. so in 20 years he should easily have over $50k in his account which keeps giving him free electricity for lifetime effectively, whereas he has hardware he needs to pay to take down and is worth nothing. He also had to do pretty much nothing to set up a direct debit to pay his electricity bills. and he's not tied down to the house to make it worth while. He's pretty wealthy and 100% has investments and knows fully well how bad of an investment this is for anyone that doesn't make money from KZbin videos on advertising this money pit. I would put in $30k into bitcoin in a bear market. in 10 years, I would be surprised it's not worth $300k

[@jasonpwright]

It’s not a good investment from a purely financial perspective. But he’s insulated from large electricity price fluctuations, gets to play with solar as a “hobby”, is probably far ahead in terms of net CO2 output, and gets to make KZbin content that makes money. I’m sure it adds up for him. My worry is about system longevity and maintenance/repairs over that projected 20-30yr lifespan. The system also depreciates. New solar and battery tech will be cheaper and more efficient, so it could be that the same size system costs half as much in 10yrs. So many variables to consider. It is nice to see some real numbers though, will help others decide for themselves. Hopefully anyone making this kind of large purchase understands the opportunity costs.

[@MusicMonkey5555]

We did ours when we did because of both the tax rebate incentives and that net metering still being offered. I know it will quickly fill up and it's the lifetime of the house/system so even if we add panels later it will still be covered. Also why we didn't pay extra for the batteries. Our bill used to be about the cost of the loan most months between AC in the summer and heat for ever colder winters. So for us it worked out to be instead of paying the power company we pay a bank until we pay it off. That shouldn't be long and will be even more worth it once energy prices keep increasing.

[@BassLiberators]

@@percy9228 I'm not surprised that someone who's into bitcoin doesn't realise why you would use 5% to estimate bonds rather than 10% lol

[@rikachiu]

Beyond the $0 bills, it's fantastic knowing you are helping the planet, reducing pollution, and relieving stress on the electrical grid, so thank you for upgrading.

[@waltertoki1]

This was a very nice video. I live in San Francisco and have 9.1 kw of solar panels installed at a cost of ~$21K after tax credits. I estimate that I will get 10,000-12,000 kwh per year. Since PGE utility costs are ~$0.50/kwh this is a return of $5K/year or ROI of ~20-25%. Furthermore, if PGE increases my utility costs, then my net returns do not change. One other item worth mentioning is that the return on investment is tax free. If I put $21K into CD bonds and got 5% interest, I would be paying 30-40% income taxes on the income from this investment. Note this assumes, that I have no future failures and expensive repairs on my solar panels.

[@vyraz]

My country has a 1 for 1kw points system, they don't buy as monetary value. But we are not allowed to have batteries and there is an anti islanding rule, so blackouts still mean blackouts for us (legally I mean)

[@richardmiddleton5984]

No batteries?! That sucks. I don't know if I would even bother with solar, if I couldn't have a battery.

[@vyraz]

@@richardmiddleton5984 thems the rules.. Pretty much u get a 10 year contract renewable but after that it's up to u.

[@Phelper99]

My gas compan;y has a $25/mo "monthly customer charge" regardless of usage. I just switched that over to electric. Edit: i've got the only house in the 'hood with no gas meter now.

[@jefftucker9225]

When you buy a car, how long does it take to pay itself off?, the answer is never, same with almost anything else you purchase, solar is one of the few things that can actually pay for itself, for me solar is more about being self sufficient, I have an off grid system and I never think about how long it's going to take to recoup the money I put in to it, just like when I buy a refrigerator or some other appliance

[@owenashcroft8167]

I'd have liked to get a few more panels, but we couldn't fit any more on our south facing roof, our peak/off peak difference is pretty extreme, so being able to fill the power walls with cheap power overnight power, and then sell back at more than that during the day has hugely reduced our payback period of a 5.8kwp and 2 power wall system to around 7 years. But ignoring the payback period we've knocked about 250 a month off our bills, because despite still using gas for heating and hot water the returned solar is paying for that over summer. I've only had a few months with the system, but logging onto my utility and seeing our bill being close to 0 for electricity and gas is great, next step is to ditch the gas!

[@idkflycasualtoo]

No issues when the internet goes out? I've heard of that being something with Tesla power

[@gayanll]

Generation is 85 Units per day? Thats amazing. What's the brand of your inverter?

[@SmartHomeSolver]

It’s just the one from Tesla.

[@sallyharris1093]

What happens when you have to repair or replace your roof?

[@michaelbillups4186]

Resale value.....I have solar panels on my house. I tried to sell it a couple of years ago, and our realtor told us most of her clients walked because they didn't want the panels. We also have cameras inside the house that were recording during the open house days. Even though we laid out informational FACTS about our solar, the other realtors that showed the house lied to their clients about the system. Why they'd sabotage their own sales is beyond me, but I'm glad they did. The house we were going to buy ended up having a termite infestation. *WHEW*

[@mesodan]

In Australia it is a selling point. 1 in 3 homes have solar so everyone knows the benefits.

[@Ziedo]

That's insane. I imagine it will change in a few years as solar becomes more common/understood. I'm in California and can't see it as anything but a positive.

[@michaels5167]

13.6 years... But what is the warranty on each component? And degradation of the panels, inverters and batteries?

[@allthiscrap1476]

for a person that is doing this to save money, why would you use the old style air conditioner. mini splits use way less energy, and other options for home appliances. Also tesla as a option cost more too,,, I thought this was about saving money? was this a tesla commercial about tesla solar and tesla cars?

[@pauljenkins6877]

There is lots of interesting data and calculations here. I have one remaining question: what is the expected service life of your system?

[@skaterdude14b]

Ecobee thermostat i installed this week. First time i’ve ever thought maybe those anti-capitalists are onto something

[@halvo265]

No mention of your average (because it will change year to year) cost per kWh. Your initial outlay ($48k - credits) amortized over X years (30? Unlikely) divided by your actual annual production, or the estimated production values provided by Tesla. BTW, a 13.6 year payback reflects a rotten ROI made slightly more tolerable with a battery operated AC during a summer power outage. Far cheaper to install a transfer switch, easy start box on the heat pump or AC unit and a propane generator.

[@mybootscamewithoutstraps]

Here in Missouri, I just got a quote from an installer for $34k for a 5.9kw system. I think it's wild that your system is twice my size and has batteries included for only 14k more than my quote. I feel like maybe I'm getting a bad deal if I were to commit to it.

[@natearrigoni]

That's really expensive without batteries, those are the biggest cost of systems. I don't think anyone's time or experience is worth that much, lol. You can set up your own off grid and build it over time. You just want to buy the batteries that are in the same bank within like a month of each other. I just split it into 3 systems and built them as needed. Not as slick as a central grid tie but for $25k less that's fine. I have a 3.5kw system with 1,600AH battery bank and it cost like $6k. It's not grid tied like I said, but I have an automatic transfer switch when needed. Make friends with an electrician and butter them up to help you. ;)

[@TheSkepticSkwerl]

in colorado springs, 1/6th of my electric bill is "staying connected"

[@Amoux_Fang]

Would off gird be cheaper?

[@SmartHomeSolver]

It's difficult to say. Basically the grid acts as a large battery that I can use at night. If I did only use the Powerwalls, then those batteries would degrade faster. So I only use the Powerwalls as little as necessary.

[@WestCoastinSupply]

What’s the monthly on the solar cost

[@bigredwag]

Crank that AC up!!! As long as you're happy with it, that's all that matters🎉👍. Thanks for the great content

[@MrAlucardDante]

You could also say "As long as you are happy heating up the planet even more"

[@OpOp-rl9wb]

Pluto will always remain a planet in our hearts!

[@axl-dnu]

That cost is insane, i assume because you used tesla powerwall, in Romania a solar pannel kit of 12 kw of solar + 20 kw of storage + 10 kw inverter costs you around 7500 US dolars, yes 7500. without any incentives . You can also get incentives around 3000 $, bringing the cost of the sistem to 4500 $.

[@Squeeonline]

Charging the car during the day only works if you work from home though.

[@scotthall1381]

He has Net Metering and charging the car at night on SRP solar plans is like 4 cents a kw

[@Jonathan_O]

You have a home that big with two a/c units and your bill was only about $200 per month? I like in Tampa, FL and are rates are fairly reasonable (about $0.11 pre KWh). My bill is nearly $200 for a condo. Also, we don’t have that demand pricing BS… yet.

[@tristanbased-af2159]

hahahah the comment easter egg collab ;)