Are you on the fence for Solar ?
The President signed Inflation Reduction Act 2022 in fourth quarter of 2022 and that is a game changer for many people like me who is on the fence and have been thinking whether to go for Solar or not.
I have recently gone through the entire process myself and got Solar installed and I am quite impressed with it so far. I am in no way suggesting anyone to get Solar installed or not and I will let you decide yourself based on the factors I have learned during the entire process which happen to be 3-4 months process.
Here are some of the questions everyone should ask to himself or herself before thinking of going solar:
Why do you need solar installed?
- To reduce your monthly electric bill
- To avoid getting electric bill increased every year
- To reduce dependency on electric companies
- To have a backup plan for electricity
- To remove dependency on non-renewable energy source
Factors you should consider before jumping on the ship to get Solar:
- How long you are going to stay in your home ?
- Does your HOA allow to install solar panels on your roof ?
- How much roofing space you have for solar panels ?
- What is the direction of the roof you are considering to have solar panels?
- How many hours of Sun do you get on your roof ?
- Is your roof new or too old - older than 5 years ?
- How much electricity you consume per month ?
- Whether you have an electric car or planning to have one ?
- Is your electrical wirings and panel upto the city code ?
- Do you have any trees which can obstruct direct sunlight ?
- Temperature rating of the Solar panels & inverters
- How much your electric company allow for Net metering ?
If you are ready to go for Solar now, use my referral to apply if you think this has helped you: https://estimator.enphase.com/lead?referral_code=63EC9D33R
What are the rebates/credits available?
- Federal is giving 30% tax refund as part of Inflation Reduction Act.
- Every state has its own plan of providing rebates, IL has SREC.
- Even City or Village might have their own rebates.
- There might be additional rebates available for installing EV charger.
Frequently Asked Questions
How long it takes to get Solar panels installed on roof ?
Depending upon what time of the year you start the process and which brand of solar panels you wanted to install - it can take anywhere from 6 weeks to few months. There will be quite few back and forth of contract signing before actual process begins, so its important for you to not delay from your side.
If you start the process in October, getting solar installed by year end is almost impossible.
Do I need to read the contracts for Solar ?
Even though contracts are standard its our responsibility as a consumer to read the contracts and you never know there might be a type or additional clause your Solar installer has added or even the Solar supplier has added any clause.
What is the upfront cost of installing Solar ?
The total cost of getting Solar panel installed might be anywhere from $20,000 to $60,000 depending upon the electricity usage, home size, number of panels, direction of panels, panel and invertor type you choose, company you choose to install Solar and the details of financing company.
Ideally you should be paying 0% percent APR with $0 financing fees for 18 months to be safe, few financing companies allow only 12 months.
How long it takes to get the rebates?
- Federal rebate is when you file taxes next year, IRS will refund.
- State rebates (if any) can take anywhere between 4 months to 12 months depending upon many factors.
- City rebates (if any) can also take anywhere between 4 months to 12 months.
What are the important steps in chronological order?
- Choose a Solar panel installation company
- Get the quote for your home from the selected company
- Solar installer will visit the home to check electric panel, grounding etc.
- Update the quote based on the Panel and Invertor selection
- Finalize the quote based on any changes in orientation and/or direction of panels
- Get the pre-approval from Financing company
- Sign the contract with Solar company and Financing company
- Get the HOA approval for Solar installation
- Get the Solar permit approved from local City/Village
- Updates needed on Solar panel orientation/placement/capacity asked by City (if any)
- Based on updates, new quote will be provided, new contracts need to be signed
- Get the permit approved from City
- Solar installer will schedule the installation date as per your convenience
- Installation can take 1-2 days max
- Solar installer will schedule the City inspection
- City will come and inspect the electrical, grounding, installation etc.
- City will approve if everything is in order, else Solar installer need to fix it.
- Solar installer will come and fix the ask (if any)
- Solar installer will schedule the City re-inspection
- City will approve this time assuming all OK
- Solar installer will remotely turn on the solar generation same day or next day
- Solar company rep will guide you about the app and login for you to monitor the generation
- Solar company will need to send you documents so that you can file the rebate with city
- Solar company will initiate the process for State rebate processor (SREC)
- SREC company will send you contract to sign
- Once contract from SREC is signed, they will prepare to file the SREC rebates
Does Solar panels come with warranty?
Yes All Solar panels and inverters come with some kind of warranty and it includes manufacturer warranty, installer warranty, roof leak warranty, Solar Insure warranty etc.
Make sure to ask about all the warranty questions and these should be part of the contract.
How long it takes to payoff the final cost of Solar?
Depending upon what was the final cost and how much electricity it generates, after all the rebates (Federal, State, City etc.) your final cost should be anywhere from $5000 to $12000 for a 8-9KW system.
Based on your monthly electric bill you can calculate how many months it will take to break even the cost.
If you are ready to go for Solar now, use my referral to apply if you think this has helped you: https://estimator.enphase.com/lead?referral_code=63EC9D33R
What are the main parts of Solar panel system?
Solar panel, Inverters, Solar tracks, Roof Mount, Panel wirings, Inverter Combiner
Does it generate any electricity at all in cloudy days ?
With good quality of solar panels and inverters, it is possible to generate electricity even on cloudy days. It may not generate enough for the day but it will generate some.
Is there anyway to find out if my roof is good enough for Solar?
Yes, You can use https://sunroof.withgoogle.com/ to check if your roof is a good candidate for Solar panels. Based on number of hours your roof gets and area on the roof for solar panels - you can get the info even before contacting any Solar installer. Ideally 1200+ hours of Sun is good to get enough Solar electricity generation.
Feel free to post your questions if you have any and I will answer to the best of my knowledge and experience.
Here is how REC 405AA Alpha Pure solar panel looks:
Other factors you need to consider:
- Federal rebate is 30% of total Solar amount
- IL State has a limitation of 10KW system to purchase Renewable Energy Credit (REC) for a single family home, please research and compare the SRECs if you are going for more than 10KW
- Naperville City has a max rebate of $3000 for a single family home
- Naperville City has EV charger rebate as well of $700, upto a max of 50% provided the funding is not depleted.
- Comed
For Naperville City specific Solar information visit: https://www.naperville.il.us/services/electric-utility/powering-our-community-for-the-future/solar-panel-guidelines/
For Comed specific Solar information visit: https://www.comed.com/SmartEnergy/MyGreenPowerConnection/Pages/SolarPromo.aspx
Net Metering & Solar Credits
From ComEd website: When you have a solar system and are being billed for net metering, you are charged only for the net amount of energy you use during each billing period (i.e., the amount of energy we deliver to you minus the excess amount you send back to the smart grid). And, if you send more energy to the grid than we deliver, you can receive credits on your bill. This program allows you to make full use of your own solar energy system, giving you more control over your energy costs. For more details on Net Metering, view our Frequently Asked Questions.
Similarly Naperville City also allows Net Metering 100%.
For details about Net Metering in other states and local government bodies:
How long it takes to get Solar installed ?
For few friends I know it took 3 months to 5 months, starting from the day contract was signed till the day when it was turned on. There are lot of steps involved in it, more like a guided tour.
How long it takes to get Naperville City rebate ?
From the time of submission of all the documents asked by Naperville City, if everything is correct and in order, rebate might get approved in 1-2 weeks and actual check will be sent by mail in next 4-6 weeks.
Few of my Naperville friends have got their rebate check within 6-8 weeks after they have submitted the rebate forms.
Who files Naperville City rebate ?
Solar panel owner (customer) files the rebate with Naperville City. It's fairly easy process, all it needs is to complete the questionnaires and send via email.
How long it takes to get SREC rebate ?
SREC rebate processing times vary state to state. IL has three stages to go though for final payment.
Residential Solar installation is categorized under "Small Distributed Generation Part 1".
Currently IL SREC handler companies are saying that it can take anywhere between 12 to 18 months until consumers get the SREC payment check.
Official IL Shine website tracker: https://illinoisabp.com/project-application-reports/
Who files SREC rebate ?
Every Solar installer company has contracted the SREC handling part to a third party who takes their cut and files for SREC rebate with state. Consumer in this case has nothing to do other than tracking with Solar installer and the SREC handler. Some Solar installers are handling this by themselves and their selling point is that they don't charge SREC processing/handling fee but they do jack the total Solar installation cost. For RxSun, Carbon Solutions Group is SREC handler and their rebate/refund processing time is anywhere from 12 to 15 months to process and send the SREC check to customer.
As of 23 March 2024, I came to know about one of the Solar customer who got from RxSun and SREC was handled by Carbon Solutions Group, it took 14 months to deliver the SREC check, so its well within the range of 12 to 15 months.
How long it takes to get Federal tax refund ?
Federal tax refund timeline totally depend upon when you file your personal tax return with IRS. IRS federal refunds usually sends the refund via ACH transfer directly to the bank account linked (this is fastest) or via check.
For Solar panels installed in 2022, you will get federal tax refund in 2023 few weeks after tax return is filed and accepted by IRS.
Assuming that tax can be filed by April 15th, standard federal refund timeline is 2 weeks.
Who files Federal refund ?
Solar consumer or tax accountant who is handling consumer's tax returns files the tax return in upcoming tax year and it comes as a federal refund, currently 30% of total solar value.
Last updated: 23 March 2024.
...and I will keep adding as I learn through the process...so keep visiting.
