So, ADT Solar is offering solar panels with no upfront cost and doesn’t start charging until two months post installation.

Fed Tax break is at 30% of the cost of the system.

By not withholding any federal taxes I will make about an extra $1k per month for 13 months.

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BE AWARE that the debt for the solar panels is a lien on the property behind the existing mortgage(s). they will subordinate the lien if you sell the property but sometimes that can be an issue for the buyer because their loan has to have a 2nd lien behind the loan they are getting for the purchase if you are transferring the debt.

For example if you sell the property and accept an offer with a 5% down payment the buyers lender has to add the solar payment to their liabilities and the lien amount to the loan to value. So in some cases that buyer will have a hard time financing the property because now they are at like 101% CLTV including the panel lien. This happened to a buyer of mine once, we were able to work it out but it wasn't easy. The solar companies aren't great to work with when it comes to removing the lien.

Also, if rates dropped and you refinance, the new mortgage now has has another lien behind it which will increase the rate on the first mortgage for the refinance.. Doesn't mean it is a bad idea by any means but from what I see the solar companies don't really explain this to you when you get the panels.

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Did you end up going Solar? I work there and would love to help you get more info if you're still interested.

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I assume this is a financing deal and not a lease. The federal tax credit doesn’t pay for leases. I was an early adopter in solar. I paid cash for my system and I’ve generated 149MWHs to date. Hard to know exactly how much that has saved me but probably around $40k given time of use peak rates in California.

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Yes this is a financing deal. There is a plan to raise electric rates by 6.6% where I live and I suspect it’ll only get worse.

I don’t know how long I plan to stay in this house. Trying to sell the house with my debt (passing along my monthly payments) may be difficult. It will take about 6 years for the value added from the panels to appreciate past the debt at that time.

This is assuming 5% home value increase annually. Depending on inflation of electricity it could be worth more down the line.

Not sure if i take the risk if I end up moving earlier than the 6 year mark.

You would need to payoff the outstanding debt at closing as there would likely be a lien on the house from the finance company. Aka if you have $15k outstanding on the loan, they will pay that off when you sell so the next owner is free and clear of that liability.

How are you getting a 30% tax credit? I thought federal was only 26% for systems installed in 2022

https://news.energysage.com/solar-tax-credit-explained/

New tax credit for 30% cost of system

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