Solar Panels in San Diego

[jlima1]

I'm considering installing solar panels at my home but undecided because of the payback. In my case it works out to about 5.5 years assuming that I break even with SDGE. My understanding is that most solar users in SD end up paying SDGE annually because of their high rate during 4 to 9 pm. Can anyone share their experience wit this issue? Thanks

 

[bmms8]

I'm considering installing solar panels at my home but undecided because of the payback. In my case it works out to about 5.5 years assuming that I break even with SDGE. My understanding is that most solar users in SD end up paying SDGE annually because of their high rate during 4 to 9 pm. Can anyone share their experience wit this issue? Thanks

Yes you are hitting it about right and a 5-5.5 payback sounds good. My high level thought is to get the bill to as close as $0 per true up year as possible. Even if you pay $500 a year, your payback stays the same compared to if you had a true $0 bill.

 

[wwu123]

I'm considering installing solar panels at my home but undecided because of the payback. In my case it works out to about 5.5 years assuming that I break even with SDGE. My understanding is that most solar users in SD end up paying SDGE annually because of their high rate during 4 to 9 pm. Can anyone share their experience wit this issue? Thanks

A ~5 year payback period on an investment that will continue generating returns for 20-25 years (typical life of solar panels) is pretty awesome. One way to look at it is after 5 years, you've recouped your cost. Another five years, the panels have generated another 100% of your investment. By year 15, 200% of your investment. If it reaches 25 years, you've not only recouped your money, but made another 400% return!

Or, after recouping the initial investment in year 5, starting in year 6 it generates a 20% return on your capital annually. 20% return guaranteed, for another 15 to 20 years. What other investments give you 20% ANNUAL return?

Of course this is simplified, doesn't factor opportunity costs, inflation, fluctuating utility rates, and so on. But the only real risk that might substantially undermine this ROI is if you get on current NEM 2.0 and the PUC and SDGE collude to eliminate the 20-year grandfathering, or you wait too long and end up on NEM 3.0 or no NEM at all, with substantially worse conditions.