Solar Panels - What a Bright Idea!

Christian: [0:00] Hello there, and welcome to another episode of the Awesome in Seattle podcast. This is Christian Nossum of the Awesome Nossum Group at Wilson Realty Exchange, Inc, and today we are talking about solar panels. For some homeowners, installing solar panels is actually a great option that has both environmental and financial benefits. And we hope to give you a better understanding of what to expect, and also dispel some myths around whether solar energy is a viable source of energy in a climate that is notorious for cloudy and rainy days, like we have here in the Northwest. But before we do that, let's say hello to all my co-hosts, the wonderful agents of the Awesome Nossum Group. First up, we have Reed Watson, the Seattle native.

Melanie: [0:41] That's me.

Christian: [0:43] We have Mel G, Melanie Ghadami.

Melanie: [0:47] Hello.

Christian: [0:48] And the data guru, Mr. Jason Saldarriaga.

Jason: [0:52] Hello.

Christian: [0:55] So before we get into- Shh, shh … the possibilities regarding solar panels, I wanna remind our listeners that our expertise lies in helping people buy and sell houses, not install solar panels or sell them. It's not what we are experts in, but with that said- We really do know a little bit about it, not a lot, but we know enough to explain to you some of the pros and cons, and kind of go over the general financial aspect. So I hope you're gonna find this to be very beneficial for you. One thing that I've heard over and over the last few years from people is that they assume solar just doesn't make sense in Western Washington because of our climate. And if I'm being honest, I kind of thought the same thing when solar first came out. Reed, what can you tell our listeners about the logistics of using solar power in the Seattle area specifically?

Reed: [1:45] Well, first off, I can tell you that it is a flat-out myth that our area doesn't get enough sun for solar power. The truth-

Jason: [1:51] Myth busted.

Reed: [1:52] Myth busted. Boom. The truth is, solar panels work more efficiently in cooler weather, and our long, cool, mostly sunny summer days give s- local solar panels the exposure to match other parts of the country as far as capturing solar energy. It might be surprising to know that we receive about 80% of the annual sunlight that Los Angeles gets, and by using a larger system of panels to compensate for a little bit less sunshine, some companies can install panels that produce the same amount of energy that a homeowner would get with solar energy down in Southern California. Since we're up here in the Northern Hemisphere, most of the annual solar energy production occurs between late spring and early fall, but energy will continue to be captured through the winter, even on those shorter days. And solar energy is still produced by solar panels during cloudy conditions. You just don't get quite as much. That said, Seattle is a very tree-lined city, and there are some site requirements that need to be evaluated, uh, relating to tree cover. So if your home is not a candidate for solar panels, it's most likely because of too many trees, not because of the conditions of the Seattle climate.

Christian: [3:12] Yeah, let's go over some of the costs and maybe some maintenance as well. So the cost of installing a solar system in Washington can obviously vary, but from the experts that we talked to and the estimates that we kinda got, it's on average between 7,000 to $26,000 or so, depending on the size of your home and how big of a system you need. Uh, the actual average is around $13,000. Before you decide that going solar is too expensive, though, we suggest scheduling a consultation to get an actual estimate for you A great thing is the lifespan of, of a solar investment typically lasts between 20 and 30 years, and the equipment doesn't really require much of any maintenance. Dust and dirt resting on top of the panels is the biggest issue, and often, you know, they, you can just spray it off with a hose when pollen or dirt gets on there. Um, and they actually do have some self-cleaning panels as well. Another thing, just like our cell phones or computers, is solar technology is constantly im- improving. So what was kind of the in solar panel last year actually is probably improved this year. So it's, it's just important to, you know, get, get a bid. If you haven't had one in a while, it might be wise to get another one now.

Jason: [4:25] Exactly, yeah. And installing solar panels can definitely be an expensive endeavor, to say the least. But if you are looking to save money in the long run, which sounds like a good deal to me, they can definitely make sense. You know, over a 20-year period, you can save anywhere between, I don't know, 10,000 to $30,000 on energy costs, but that really depends on the size of your solar array and your usage and how many trees are blocking your solar array. I think Reed commented on that.

Reed: [4:56] Mm-hmm.

Jason: [4:57] If you are producing more energy than you use, though, you can utilize, uh, something that is called net energy meeting, metering. Net energy metering. I wanna make that very clear. Um, you might have heard of this. This is when you basically sell the excess energy that you produce back to the grid. And this is not uncommon, especially during certain times of the year, like in the summer. You might produce more energy than you need. And so with net energy metering, you can be credited back the amount of excess energy your system produces, and then use those credits at no cost, the, the energy at no cost, during the, the winter months when you're producing less energy, but maybe using more.

Christian: [5:43] Yeah, exactly. It's, it's actually pretty awesome. It's like you're producing and then selling off the power that your house generated, your solar power's generated, and you're selling it back to the power company and, or building up a credit base. And when you actually need that energy that your solar isn't producing, you get that back. It's, it's kinda cool. It's like your own little power plant. The cost of solar powering your home has definitely dramatically decreased over the last decade, and a part of that is because there are a lot of federal and state tax benefits available if you do go solar. Currently in the US, if you decide to install solar panels, you may be eligible to claim a 26% tax credit on the install costs, which obviously could decrease your cost by thousands of dollars. It is important to note that the rate of the federal solar tax credit is set yearly. So this tax, it's, it's actually called the Federal Solar Tax Investment Credit, refers specifically to installations during 2022. So in 2023, it's actually reduced to 20%, and in 2024 it's gonna expire completely. Um, so if you are looking to do it, the tax benefits are bigger this year than they're gonna be next year, and then the following year after that, it's supposedly going to be eliminated. But as with anything tax related, things could and probably will change, so definitely check with your accountant or your CPA to see how this could actually affect you Now, we may have buried the lead here a little bit, but another obvious reason that many people choose solar is because it's a way to lessen their impact on the environment. So let's go over that. Mel, will you describe some of these benefits?

Melanie: [7:25] Yes, definitely. So unlike coal or natural gas, the sun is an infinite power source. Many people choose to install solar panels because it makes them feel good about reducing dependence on foreign oil and fossil fuels. Solar power is a great way to reduce your carbon footprint because you are producing energy without dangerous emissions. The average American home produces almost 15,000 pounds of carbon dioxide annually. Your solar panels as your main energy source can reduce that by more than 3,000 pounds each year. So if you install solar panels and use that energy to charge your electric car, you can reduce your carbon footprint even further and charge your vehicle at no cost.

Jason: [8:12] Yeah, that's… There's definitely green benefits to, uh, solar arrays, and then there's, I guess, non-green benefits as well, one of them being, you know, Seattle as a whole has pretty stable electricity. Um, I've seen the headlines with, uh, California having some issues in recent years, but there are areas in Seattle that have blackouts, uh, here and there. Every once in a while we have a windstorm and the power might go out, and having a solar array with battery backup can definitely come in handy during those times. Really quick, I do wanna chat about loans. You know, I had mentioned earlier that the cost, uh, for these arrays can be quite expensive. Um, so there are loans available to help with the, the cost here. One option is basically a personal loan. This can be good if you wanna get the money quickly. Another benefit to personal loans generally is that they have fixed interest rates and payments. So not having to put your home up as collateral and having, uh, worrying about home equity to qualify for most of these can, can be helpful. A lot of solar installers or companies also have loan products that they can help set you up with. Another option, if you do have a lot of equity in your home and are comfortable borrowing against it, is a home equity loan or a home equity line of credit I don't know if y'all re- remember episode 50, but we discussed HELOCs, home equity line of credits, quite extensively. And, uh, these, this could be an, a great option if you're thinking of installing a solar array. So definitely refer back to episode 50 where we really dive in deep on HELOCs. Beat it to death.

Reed: [10:04] Absolutely. And if you can and are ready to make that purchase and buy solar panels for your house, there are a few other things to consider as well to select the best solar panels for you. So there are things like efficiency, price of course, warranties, and other things, like are they self-cleaning? How large are they? What's the aesthetic? There's a ton of information out there, and as the technology continues to improve, so do the systems, in both effectiveness and design. So if you're concerned with how going solar will affect the look of your home, one option is to install solar shingles that more resemble the look of a traditional roof, as opposed to putting a panel on top of your existing roof. Tesla has produced a product called Solar Roof, which gives you all the benefits of solar panels without compromising the look of your home, and those tiles all come with a 25-year warranty. Seattle is full of people looking for ways to help the environment, so there are a lot of great solar panel companies and solar roof installation companies in this area that are available to help you determine if solar shingles or traditional panels are gonna be the best fit for your needs and your budget.

Christian: [11:21] Yeah, and if you're ever looking for a recommendation on a great local solar installation company, just reach out to us at the Awesome Nossum Group. We would be happy to connect you with some that we have heard good things about. All right, so let's wrap up our discussion and break down some of the pros and cons for moving to powering your home with solar energy. Reed, let's go over the pros.

Reed: [11:43] Absolutely. So there are definitely a lot of pros. Installing solar panels is a great way to reduce your electricity bill while investing in your home and in the environment. Although there is that upfront cost, in the long run, you're going to reduce your energy costs and save money. As mentioned, going solar will also reduce your carbon footprint and give you more energy independence. And if you have a Powerwall or battery included in your system, you'll have power even during a power outage, day or night. Powerwalls and batteries store excess energy so that even when the sun is down, you'll have power during a blackout because you aren't relying on the power grid.

Christian: [12:22] Yeah. A funny story to add on to that is I have a client that had a house that had solar on it, and they had two Tesla Powerwalls that were basically batteries that stored the energy that the solar panel was producing. And they didn't even realize it, but the power had gone out during a snowstorm, and they had no clue because their power just stayed on, and it didn't make any noise or, like, some crazy thing happen to make them realize that the power had gone out for the whole neighborhood. And all of a sudden, they look out their front neighbor- or their front window, and all their neighbors are just staring at their house going, "What is going on?" And granted, this was probably six years ago, so solar wasn't as popular and people didn't realize, you know, solar Powerwalls, um, or Tesla Powerwalls were much of a thing yet. But it was just interesting that, you know, it, it was such an, a seamless switchover from- The power going out to their house just continuing to operate like nothing happened. It was pretty cool.

Reed: [13:21] That's a great advertisement for it, honestly.

Christian: [13:23] Mm-hmm.

Reed: [13:24] Yeah. Yeah, so the bottom line is if installing solar panels is within your budget and your home fits site requirements, it just feels good to do something that promotes sustainability and is great for the environment as well as your wallet. Powering homes with clean energy will hopefully be the norm in the future, and if you have the ability to help move in that direction, then it's really a gift to you and your community. Also, if you decide to sell your home, installing solar panels may increase the value and appeal of your property. I know I've had buyers, uh, be really excited about homes with solar panels, so hopefully get a little equity as well.

Christian: [14:00] Yeah, I've definitely seen, uh, homes that have solar sell for more because they're much more appealing to that buyer- Mm-hmm … 'cause they understand that they're gonna have that savings from, you know, what it, what would normally cost to, to run their house.

Reed: [14:14] Yeah.

Christian: [14:15] All right, let's go over some of the cons, Mel.

Melanie: [14:17] Yes. For some people, even if they really want to help the environment, solar panels may not be possible in their current home. Even with tax breaks and available funding, it may be fiscally impossible to install solar panels, and sometimes the cost is greatly increased because of prep work that needs to be done on a home before installation, such as modifications to your roof or panel layout based on current ventilations on your roof So if you don't plan on living in the same home for the next 20 years, you may not want to make such an investment because transporting your solar ener- energy system is almost impossible. Though it can be done, it is discouraged because for moving, y- the system will likely cause damage to the home, which will probably end up costing more than just installing a new system in your new home.

Christian: [15:09] Yeah, that's a really good point. I mean, it's always important to, and the solar company should and probably will, um, check out your roof and make sure that your roof isn't nearing the end of its lifespan. Because if it is, you're gonna probably wanna put a brand-new roof on before you install the solar because it's laying over the top of your roof, and it's such a pain to, and more costly, to remove your solar, p- put on a new roof, and then reinstall your solar panels. So just something to keep in mind. But that brings us to the end of today's episode. Thank you everybody for joining us. Thank you Reed, Mel, and Jason for tag-teaming this with me. Um, hopefully all of you listeners are walking away with a better view of the possibilities around moving to solar energy in your home. Uh, I know from experience that it's actually not that hard to get a bid for solar. Uh, generally they pull up your house on, like Google Maps, or they have other proprietary software where they can use like Google Earth-type technology satellite photos to see if your house is a good candidate to add solar. So it can be a very simple fill out the form on the website type of, uh, estimate to get a general idea of if your home will work or not. They don't always have to come out. You don't always have to listen to a big spiel or sales pitch. Um, you might be able to just get a general idea if it works for you or not just by, you know, completing some paperwork or forms online. But that is it for today. If you did want some recommendations for solar, don't hesitate to reach out. You can find all of our contact info at AwesomeNossumGroup.com. And as always, if you're ever interested in buying a home, you can always come to one of our free home buyer classes. They are generally once, sometimes twice a month, and you can find those at beersandhomebuying.com (opens in a new tab). That is B-E-E-R-S, beersandhomebuying.com (opens in a new tab). That's it for this episode. We'll see you next time