Florida solar water heating

[zooracer]

Had a guy come over to the house today to talk about installing a solar panel for the water heater (Allsolar Energy Inc. out of Lake Helen, FL)
Apparently Progress Energy gives a 500 dollar rebate, Federal govt. gives a 1500 dollar tax credit, and state of florida may also give 400 dollars if approved in the new budget.
Our average energy bill is about 160/mo and he estimates that 65 dollars of this is to heat the water.
So, the solar heating job is a 100% financing thing with 0 interest and the payment is 50/month.
Also, Progress Energy has announced a 25% price increase next year to fund the future nuke plants they will be building.

So, the fify bucks per month would be paid for plus some...meaning I will be making money each month...WITHOUT the various rebates.

I cannot find anything negative online about this company.
Does this sound like something I should go for? It sounds like a win-win situation with no downsides.

[zooracer]

forgot to mention, the whole kit costs 5 grand, but with the rest of the numbers I guess this isnt so important...no?

[kork13]

As a general statement, using solar panels can be extremely beneficial. Environmentally, it's obvious--it reduces the need for energy from coal, gas, oil, or whatever... So you get that warm fuzzy feeling for being "green". Economically, it reduces your energy bill, and it can pay for itself within 5 years or less (factoring in the tax credit). Overall, it's a pretty good deal.

Look into the company, and the equipment they use. Ensure the quality of their instrallation and subsequent service. Look at other options. Just because they're offering it, you may be able to get a similar/identical setup for a better price. You also want to make sure the solar components have a good history of performing well over the long term (at least 10-15 years, preferably longer). Also, where in Florida are you? You need to consider the risk of hurricanes--what can be done to protect the relatively fragile solar arrays?

Just some considerations.... personally, I'd very strongly consider this as an option.

[zooracer]

As a general statement, using solar panels can be extremely beneficial. Environmentally, it's obvious--it reduces the need for energy from coal, gas, oil, or whatever... So you get that warm fuzzy feeling for being "green". Economically, it reduces your energy bill, and it can pay for itself within 5 years or less (factoring in the tax credit). Overall, it's a pretty good deal.

Look into the company, and the equipment they use. Ensure the quality of their instrallation and subsequent service. Look at other options. Just because they're offering it, you may be able to get a similar/identical setup for a better price. You also want to make sure the solar components have a good history of performing well over the long term (at least 10-15 years, preferably longer). Also, where in Florida are you? You need to consider the risk of hurricanes--what can be done to protect the relatively fragile solar arrays?

Just some considerations.... personally, I'd very strongly consider this as an option.

the panels are rated for 180mph winds. The local building inspectors inspect it after the install to make sure it meets code.

The thing I guess I didnt make clear here was this :

From what I gather, if you live in a state that offers solar rebates (I know NC also does, and also Indiana I think) and if the local power company ALSO offers rebates you are a fool not to install this unit

If the water heater is responsible for 70 dollars of my monthly bill. And the solar water heater covers 90% of my hot water needs. And the monthly payment for the solar is 50 dollars. Then, this means you will SAVE MONEY IMMEDIATELY. Not have to wait years to see a return.

PLUS, you will get thousands of rebates on top of this!

So, if I were to tell you that I could install this solar dealeo and immediately save you money AND you would get thousands of dollars ON TOP OF THE SAVINGS...would you say....no?

Isnt this a forum about saving money? Has everyone on here checked in with their state and local power company to see if they have these programs?
This has absolutely nothing to do with feeling fuzzy and warm inside. This is about saving money AND getting a couple thou in your pocket.
Can anyone show me on this forum where you can make a couple thou by doing...nothing?

[MonkeyMama]

Solar isn't going to help us anytime soon. We pay $8/month for hot water and $15/month maybe during a few colder months. (Gas heat). Eh.

You can get a lot of the same benefits (rebates and lower utility bills) simply by changing to newer energy star appliances, which are a lot more economical than solar panels.

I've actually never seen an instance where going solar saved someone money. If it does in your case, great. But I don't think it does for most people. Solar panels are costly to install and to maintain. The rebates and savings rarely make up for these costs.

I would do it for the chance to use renewable energy. I think that is a worthy reason. But I won't be switching to solar to save money, any time soon.

[zooracer]

Solar isn't going to help us anytime soon. We pay $8/month for hot water and $15/month maybe during a few colder months. (Gas heat). Eh.

You can get a lot of the same benefits (rebates and lower utility bills) simply by changing to newer energy star appliances, which are a lot more economical than solar panels.

I've actually never seen an instance where going solar saved someone money. If it does in your case, great. But I don't think it does for most people. Solar panels are costly to install and to maintain. The rebates and savings rarely make up for these costs.

I would do it for the chance to use renewable energy. I think that is a worthy reason. But I won't be switching to solar to save money, any time soon.

I dont know if you read my post or not....but, you will save money immediately. Everything is right there in the posts above. The rebates are simply icing on the cake. Even without them, you will be saving money IMMEDIATELY.

You are paying 8 dollars a month in gas to heat your water?
What kind of water heater do you use? What does your local gas supplier charge?
Do you use hot water when bathing?
What is your total monthly utility bill?

Switching to newer energy star appliances will not save you money for quite some time. If you figure the cost of the appliance...say 400 for a water heater...it would be some time before seeing any savings.

[zooracer]

so, I spoke with the sales guy further and it turns out the loan is not 0% interest. I think he said 9%.
But, since you can write the interest paid off on your federal tax return this essentially makes it 0%.
Still sounds like a complete win-win for me at this point.
If nobody has any negatives on this, I'm going to pull the trigger on monday (told him I needed the weekend to research).

[zetta]

Writing the interest off does not make it 0%.

If you are in the 15% tax bracket, for every $100 of interest you pay, you get $15 back.

[MonkeyMama]

I dont know if you read my post or not....but, you will save money immediately. Everything is right there in the posts above. The rebates are simply icing on the cake. Even without them, you will be saving money IMMEDIATELY.

You are paying 8 dollars a month in gas to heat your water?
What kind of water heater do you use? What does your local gas supplier charge?
Do you use hot water when bathing?
What is your total monthly utility bill?

Switching to newer energy star appliances will not save you money for quite some time. If you figure the cost of the appliance...say 400 for a water heater...it would be some time before seeing any savings.

How is it going to save me money to spend $50/month on something that costs me $8/month??? You lost me. (& this is being simplistic. The total cost would take me like 50 years to recover assuming I cut my hot water bill in half. From like $8 to $4).

Secondly, there is no tax deduction for the interest. (Salesmen will tell you anything - I am a tax preparer and my clients have fallen for some doozies).

Last month we were charged $10 (taxes and all). Summer rate was $1.67 per Therm. Fall rate is apparently $1.33/ Therm. I allocated $1 to the gas stove for the month. This could be generous.

We take lots of long/hot showers. It is not something we scrimp on in the least. Plus we do laundry and dishes almost every day. (Kids, and lots of cooking on the gas stove).

We have an Energy Star water heater that was installed with our house in 2001. I don't there is anything particularly special about it. I can't figure out exactly what model it is. IT does have an insulation wrap. I am not convinced buying one and placing it in an older house would have the same results. The builder did a lot of things to make the house energy efficient. It is the gas that I can't get over and am not sure what all they did to make our bills so cheap...

Our electric is billed by another company. Our electricity bill is why we have considered solar, but even that only averages us $50/month.

[zooracer]

How is it going to save me money to spend $50/month on something that costs me $8/month??? You lost me. (& this is being simplistic. The total cost would take me like 50 years to recover assuming I cut my hot water bill in half. From like $8 to $4).

Secondly, there is no tax deduction for the interest. (Salesmen will tell you anything - I am a tax preparer and my clients have fallen for some doozies).

Last month we were charged $10 (taxes and all). Summer rate was $1.67 per Therm. Fall rate is apparently $1.33/ Therm. I allocated $1 to the gas stove for the month. This could be generous.

We take lots of long/hot showers. It is not something we scrimp on in the least. Plus we do laundry and dishes almost every day. (Kids, and lots of cooking on the gas stove).

We have an Energy Star water heater that was installed with our house in 2001. I don't there is anything particularly special about it. I can't figure out exactly what model it is. IT does have an insulation wrap. I am not convinced buying one and placing it in an older house would have the same results. The builder did a lot of things to make the house energy efficient. It is the gas that I can't get over and am not sure what all they did to make our bills so cheap...

Our electric is billed by another company. Our electricity bill is why we have considered solar, but even that only averages us $50/month.

so you have kids and your electric bill is 50 dollars. How much is your gas bill? 10 bucks? So 60 total to power you're home?
I'm just fascinated with your low bills as the average nationwide for gas water heaters alone is about 35 bucks a month.
Heck, even a tankless gas water heater is average of 20 bucks a month.

So, your 8 bucks with kids is amazing.

And 60 bucks utility bills per month is also very impressive.