Buying Solar Is Complicated: Solved! will help give comfort to anybody considering going solar. This article will provide the information you need to know about going solar for wholesale. Even better is you don’t need any expert knowledge of home solar.
The main reason home solar is a bit complicated is because it’s so new. Home solar in Florida became a thing in 2017 when the voters defeated the power companies in November 2016. See Florida Statute 163.04.
Florida Statue 163.04 set into motion the home solar revolution in the state of Florida. Actually, it’s more like set into slow motion the solar revolution.
The advantages of home solar are quite numerous, with very little down side. So why hasn’t the solar industry flourished like so many other revolutionary Ideas in the past?
Working inside the solar industry for a company that installed over 500 solar systems in one year revealed one single flaw? That single flaw is without question is the cost of a home solar system. Companies have been marketing home solar using high-pressure sales techniques and taking advantage of people’s lack of knowledge and misunderstandings of home solar.
Home Solar Is An Excellent Investment
Home Solar as an investment into a small power plant that you own. So the key to home solar is to buy low and sell high, the same as you would investing in a companies stock. Investors want to know what their return on investment will be? and it’s no different with solar, the lower price you pay the better the ROI.
What makes investing in home solar unique from all other investments is your using the power companies money not your own. So let’s go ahead and get into Buying Solar Is Complicated: Solved!
Avoid The Pitfalls of Home Solar and You Will Make One of The Best Investments of Your Life!
The Following Are The Pitfalls You Want To Avoid
A lot of people have made millions of dollars using slick sales methods. Here’s a list of the type of methods used by solar companies.
1. The Federal Tax Credit Abuse
The companies use the Federal Tax Credit in your deal as a down payment. The slick parts are as follows, they say no money out of pocket, not no money down. They structure the deals as if you’re going to get the tax credit in the full amount when you may not qualify for the tax credit. This is very important to understand because they use your tax credit as a down-payment so your payments are lower.
Qualifying for the tax credit requires that you owe or prepay income taxes to offset the amount of the tax credit.
Example: You owe or prepaid $10,000 income taxes and you have an ITC credit for $10,000. In this example, you owe $10,000 income taxes the tax credit would mean you don’t have to pay the $10,000 in taxes. If you prepaid your taxes then you receive $10,000 refund.
Example: You owe or prepaid $4,800 in Income taxes. Your tax credit is $10,000 you do not qualify for the entire $10,000. You only qualify for $4800. You can carry forward the tax credit for up to five years until you reach the amount of the tax credit.
Know The Facts Before You Buy
Many people who have bought solar didn’t understand these examples of the tax credit. They didn’t put any money out of there pocket and had solar on the roof so they think there wasn’t a down payment in the deal.
But then the reality hits them in the face 12 to 15 months later. That reality is they may not be getting a tax credit at all or they get a very small tax credit. Unfortunately you agreed to pay that money to your finance company whether you realized it or not.
If you do not pay the tax credit money to the finance company your solar payment will be $70 to $100 higher than what you thought. In essence, the solar system is 100% financed. When you remove the tax credit money from the deal your solar payment is higher than your power bill.
Leave The Tax Credit Out of The Deal
The tax credit is your money to do what you want with it. The Investment Tax Credit ) (ITC) should not be included in a solar deal because it’s an unknown quantity. It’s separate from the cost of a solar system, it’s a rebate only if you already have a tax liability. If someone tells you that you’ll get the money they have to be lying because they don’t do your taxes. Those taxes during the year of purchase are based on that calendar year which is not over yet and income is subject to change from the previous year.
The way these companies disguise this abuse of the tax credit is interest-only for the first 12 to 15 months. Your payments start out below the quoted solar payment and the tax credit is buried in there to quote an even lower payment. But when that 12 to 15 months is up the reality hits them and they have a solar payment substantially higher than their power bill was.
These are unsuspecting folks who have excellent credit so they bite the bullet and make the payment to protect their credit. These abused customers become the spokespersons for the home solar industry.
Now we know why the growth and popularity of home solar has been so slow with only 2% of all homes in Florida having solar in 2020.
2. 20 Year Low Interest Financing Doubles The Cost of Solar
The 20-year term is used as a way of getting your solar payment at or less than your power bill.
This 20 Year loan creates several dramatic cost increases. The most obvious being the interest over 20 years at roughly 5% doubles the total cost of a solar system. So if $30,000 is financed then with interest it will be $60,000 at the end of twenty years.
One more big issue with financing that’s not so obvious, companies pay $2,500 closing costs and hide it in the deal. They pay high closing costs to get lower interest rates but they don’t tell the customers about any of this. But we are smart enough to know the customer is paying all additional costs, not the solar companies.
The bottom line is to get your own financing and pay off your system ASAP. Banks don’t do loans for solar systems so it’s best to do a refinance, a home equity loan or even a credit card purchase. All these methods can either lower the cost of the loan and or lower your mortgage payment because of record-low interest rates. Although the interest is high using a credit card there aren’t any closing points involved. Each situation is unique to itself and that’s why it’s best for the customer to be in control of financing.
3. All The Other Additional Costs That You Want To Avoid
The Cost of Salesperson averages $3000 a Deal, Sales Manager $1500, Proposal Builders and Permitting Department $1000 a Deal, Overhead: Rent, Auto Insurance, Vehicles, and Utilities $1000 a Deal, Cost of Leads and Marketing $1000 a Deal.
That’s a total of $9500 Per Deal and that’s in addition to the cost of equipment and installation.
The majority of these companies are using the same business model and has led to inflated costs. But now there’s a better way to go solar.
“Your Solar Advocate”
“Your Solar Advocate” is a step by step expert consulting firm. The name speaks for itself, we are “Your Solar Advocate” through the entire process. we arrange for all your equipment to be purchased at the same wholesale prices as the solar companies.
We do it all but make the purchases, you buy direct for everything. What we do is assist you with expert knowledge of the laws and rules and all the contacts. We arrange for the very best installation and the purchase of solar panels and equipment at wholesale. The optimal system is going to cost you an absolute minimum of $6000 Less including our consulting fee. See “Your Solar Advocate“.
If you would like to speak with an expert solar advisor simply fill out the basic info form below and we will contact you within 24 hours or Call 813-312-6027
Provide “Your Solar Advocate ” With The Average Monthly kWh’s and Get Your Free Cost Estimate
“Your Solar Advocate” does not share your information with anyone under any circumstances without your consent. Personal information is not required throughout the entire process of going solar. “Your Solar Advocate” does not require your social security numbers, driver’s license numbers or Credit Checks!
“Your Solar Advocate” uses your information for Advocacy purposes only, to serve you better. We do not Sell Solar we provide expert knowledge about Solar to assist you in Going Solar for a lower cost! Assistance with purchasing equipment, permitting & Design and Installation.
Because we are your solar advocate, we do not make purchases, we make the arrangements for you to make the purchases. All for one fee regardless of the size of the system.
We act strictly as an expert solar advocate for you. We inform you of the most important things you need to know such as the size of the system, the best location of the system, wholesale prices on different size systems and expert installation.
The list of services goes on, but the bottom line is the bottom line. Including our advocacy fee, you will save a bare minimum of $6000 for any 7K home solar system or larger.
The larger the system the more you save because we do not raise our fee regardless of the size of the system.