Thinking about purchasing a roof-top solar system, but not sure if it's worth it? Are solar panels truly an alternative energy solution and money saver or just one big scam?
The national consensus on solar panels is that they're an alternative energy source for your home, that's highly efficient to use due to its infinite energy resource, the sun. This is partly true. The function of a solar panel is to generate energy from the sun and efficiently convert it into your home, saving you lots of money from having to use your local electric company that basically charges whatever they deem is fair.
However, in today's competitive energy resource industry, the solar panel function is practiced more in theory, as we're seeing more and more solar panel companies being ousted for homeowner fraud and illegal business practices. With an uprising of shiesty, unaccredited alternative energy companies lurking sidewalks and door steps, in hopes of taking advantage of homeowners; using tricky contracts filled with broken promises as bait, one must stay thoroughly informed. If you're still stuck on fence about solar panels being a energy saving investment or an investment catastrophe, here are the pros and cons of owning a home with solar panels.
Let's first take a look at the pros:
When it comes to the addition of rooftop solar panels, ownership is key. Particularly in the long-term financially. Although there are three ways of financing your home solar panel system( fully purchasing a Solar System, Solar Leasing and Power Purchase Agreements), purchasing a solar power system outright fully maximizes the financial benefits for your home. With full ownership, you keep all the profits. Currently, with the average cost of a solar panel system being $17,500, homeowners are estimated to receive a return on their investment in 6 to 11 years.
Not only are there financial benefits to outright ownership of a home solar power system, there are money saving benefits as well.
Depending upon your location, owning a home solar power system can really pay off. Areas such as Louisiana, Maryland and New Jersey rank among the highest($3500-8,500) in affordable home solar power systems, with reduced cost up to 70%; making solar power ownership in these states a payoff that can yield return savings within the first 6 years.
As previously stated, solar panels draw energy from the sun, a totally free, never-ending infinite source of energy that runs in daylight hours. If the solar panels that you have installed on your roof are fully functional, they will able to transfer that energy from the sun and convert it into electricity for home usage; just as if you were using electricity from the electric company.
In a process known as "Net Metering", allows you to sell your unused electricity back to your local energy providers. Although the price range for selling excess energy back to the energy companies varies from state to state, there are areas throughout the U.S. where you can end up generating more energy than you can utilize, forcing the local electric companies to cut you a check. Keep in mind, as the price for energy increases, so do your prices when it comes time to selling back your unused energy.
Again, collectively solar power systems are considered a positive commodity. In terms of property value, adding a solar power system only increases the value of a home. According to research conducted by Lawrence Berkeley National Laboratory, studies show that "Home buyers consistently have been willing to pay more for a property with PV(photovoltaic home solar system) across a variety of states, housing and PV markets, and home types." In most cases purchasing a home solar power system can end up paying for itself in overall property value.
Now let's breakdown the cons:
Most homeowners aren't aware of the scamming and fraudulent behavior running rampant within the alternative energy industry. The typical scam involves non-utility third-party contractors and affiliates making promises they don't intend to keep, hoping they get you to fall for their "free installation" with a 20 year sign-up lease agreement. Aside from the outrageously long-term lease agreement, not outright purchasing the solar panels puts your house more at risk.
With no full ownership of the solar panels, you're essentially just paying for another kind of electricity, along with your standard electric company, with no real benefits.
Taking on a 20-year lease agreement for a solar panel system is especially a bad idea for homeowners in states such as Nevada, South Dakota and Wyoming, where owning a solar power system costs well over $20,000.
To make matters even worse, when a homeowner agrees to one of those predatory leases, the solar company ensures the contract by placing a lien on the property of the homeowner. Now the company's contractor not only has legal ownership of the solar panels, but also legal claims to the homeowner's property.
The vicious cycle continues, as those faulty energy companies sell those liens to other third-parties at a discount, only after being exposed for using illegal contractual obligations in their lease agreements. The third parties will continue to hold on to these liens until they either collect on those bad contracts or seize their properties.
Having a lien on your property makes it very difficult to sell your house, and very expensive to remove, due to the legal actions that must be taken before you can do anything.
These bad contracts force you to pay or lose your home.
Several factors certainly come into play when deciding whether or not to purchase a solar power system. Outright purchasing a solar power system is your best bet. Otherwise, you can find yourself dealing with serious legal ramifications that could lead you to financial ruin or even end up losing your home. Scammers can appear disguised as alternative energy representatives or non-utility third-party contractor/installers, preying upon your gullibleness, in route to place a lien or other contractual property obligation on your home.
So be sure to research the alternative energy company you're interested in and all of their claims. Thoroughly read through the contract(s) before signing up for anything, and make sure to check their customer reviews for unbiased opinions. Your home is one of the biggest investments you'll ever make. It's imperative in understanding that your current investments can directly affect your ability to make future investments. Solar power systems are no different. Jump to top
Author:Amber Anderson Phone: 702-343-1424 Dated: March 14th 2018 Views: 164 About Amber: ...
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