Top 4 Reasons Why Going Solar Might Not Be Right for You (An extensive guide)

First, I want to start off by saying this particular blog post is unusually long. It is like this because I wanted to really debunk a lot of the myths and misconceptions that plague the solar industry. If you are able to read the whole article, you will notice the content in this post is unlike anything else you would be able to find online. This article is not long on purpose, it is just that for me to be able to provide actual truth, facts and details for all these scenarios, i had no choice but to be as transparent as possible which by doing so leads to an extensive paper. I hope after reading this you are able to leave having learned something valuable to you that could help you along your solar journey. So let’s get to it.

You may be asking yourself, does solar really make sense, or perhaps you’re asking if solar is a good investment or is solar even right for me?

It might seem counterintuitive for a company dedicated to facilitating the transition from conventional electric providers to solar energy solutions to broach this topic. Yet, after years immersed in this field, engaging with countless homeowners, and guiding them through the process, I believe I’ve earned the privilege to address it candidly.

It’s my genuine belief that individuals residing in owned homes with ample roof space, minimal obstruction from trees on their property or neighboring plots, and those that are patrons of utility companies prone to rate hikes, stand to benefit greatly from transitioning to solar energy. However, amidst this seemingly universal recommendation, it begs the question: are there scenarios for certain homeowners where making this switch may not be advisable? Let’s explore!

First, I’ll address four scenarios where it may not be advisable. Next, I’ll outline three reasons why, as a homeowner, you might initially believe solar energy doesn’t make sense, but contrary to common perception, it still does.

4 scenarios where solar may not make sense for you:

1. You are not home often
2. You plan on doing a major addition to the home
3. You do not have the proper roof orientation
4. You don’t often like change

Now let’s address each one of these in detail. Keep in mind, this is an extensive post going into great detail on every one of these scenarios. There are even more situations that homeowners may find themselves in that prevent them from going solar, but if I add them all in this blog post, it would be as long as a text book. So I will be writing a 2nd part to for this article. But for this article, feel free to scroll down to find the specific scenario that may relate to you.

You are not home often:

If you find yourself frequently on the go or spending most of your days at work, casting doubts on your ability to fully utilize solar power throughout the year, sticking with conventional electricity might seem like the sensible choice. Similarly, if you’re mulling over installing solar panels on a secondary or vacation property where your presence is sporadic, it’s natural to question the feasibility. Ultimately, determining the viability in such scenarios depends on your goals.

Suppose your primary aim is cost savings, a compelling reason for embracing solar energy. In that case, the answer largely revolves around your utility company’s policies, particularly regarding net metering (NEM). This complex subject warrants an article of its own, but here’s a nutshell version: 

Some states and utilities offer favorable NEM programs that heavily favor solar users, while others do not. Take the case of a major California utility like Southern California Edison, which used to credit solar-equipped homeowners at a 1:1 ratio. In simpler terms, if your solar system generated 1,000 kWh in August, but your home only consumed 800 kWh, you’d receive a credit of 200 kWh for future use—a straightforward arrangement. However, with the advent of NEM 3.0, these dynamics have shifted significantly, with credits now resembling a mere fraction of their former value. It’s crucial to recognize that while a major utility heavyweight like Southern California Edison (SCE) did indeed undergo a seismic policy shift, it’s important to view this as a localized adjustment rather than a sweeping statewide reform within California. These changes predominantly stem from utility-specific decisions rather than blanket regulations at the state level. Nevertheless, the landscape varies from state to state, emphasizing the need for nuanced consideration.

Also, the rise of NEM 3.0 signaled a significant transformation, completely reshaping the solar landscape in that particular jurisdiction. However, it’s worth noting that homeowners who had solar installations predating April 15th, 2023, were granted grandfathered status under the previous NEM framework, maintaining the advantageous 1:1 ratio. The impact was felt primarily by those transitioning to solar after that cutoff date. 

Contrast this with Northern New Jersey, where our operations are based, boasting a robust NEM policy. In New Jersey, any surplus credits remaining in your energy account at the year’s end are reimbursed at around 85% of the retail price, ensuring you recoup most of your investment. 

Essentially, if by year’s end you haven’t exhausted all the energy credits generated by your solar system, the utility company initiates what’s known as a True-Up process. In New Jersey, you will be reimbursed for any surplus credits that went unused. Although this reimbursement isn’t at the full delivery plus supply rate, it typically aligns with the supply rate, which translates to roughly 85% of the total electricity cost. In simpler terms, while solar-generated power throughout the year garners credits at the full (1:1) retail rate, any unused surplus is reimbursed at the supply rate during the True-Up, still presenting a financially viable scenario.

Conclusion:

Therefore, if your property sees limited occupancy and the credited power fails to match your utility’s rates, solar might not deliver the expected cost-effectiveness, especially if financial savings is your primary objective. On the other hand, if your aim is to embrace cleaner energy, then of course this may not matter as much. 

Remember, the main thing here is the critical importance of understanding your utility’s precise policy—a task your local solar expert is well-equipped to assist with. 

This serves as a compelling rationale for those residing in states with utility companies that strongly favor consumers to give serious thought to making the switch sooner rather than later. The dynamics of such policies inevitably shift, often to the detriment of consumers. If there’s an opportunity to secure grandfathered status, it’s highly advisable to seize it while it’s available.

For those contemplating the switch to solar, consulting a local solar expert is invaluable in deciphering your state’s regulations and, more crucially, understanding your utility’s NEM policy.

Plan on doing an addition to the home:

This is more about timing than anything else. Suppose you’re considering solar while also planning to expand your home’s square footage. The key question to ask yourself is: when do you envision making those additions? Timing holds significant weight here, as solar costs tend to level out over time while installation labor expenses rise in conjunction with electricity prices. Delaying a solar installation because you think you may expand the home one day five years later may not be the most financially prudent move if savings are your primary objective.

So, when does it make sense to hold off on solar if you’re planning home expansions? The first inquiry your solar sales rep would likely pose is whether your plans involve vertical or horizontal expansion.

If you’re merely extending your home’s footprint without altering its existing structure, you’re in the clear to kickstart your solar journey whenever you please. Solar installations typically don’t interfere with construction efforts, usually wrapping up within one to two days. The lion’s share of the project entails administrative tasks, like securing permits, which happen independently in the background. Your solar installer can pause the project to synchronize with your home addition timeline if necessary. Concerned about increased electricity consumption due to the expanded living space? Fear not; you can always add more panels post-addition completion. It’s advisable to wait a year to gauge your new usage pattern post-expansion before deciding on additional panel requirements.

Consider this hypothetical scenario:

July: Initiate discussions with your solar rep and commence solar planning.

August: Begin home construction.

September: Solar permits secured! Complete installation in a single day.

December: Home construction wraps up.

January: Utility permission granted; solar system activated!

Enjoy reduced electricity bills with your new home addition. Monitor consumption over a full winter and half a summer; if usage spikes, contact your solar provider to expand your system accordingly. Reputable companies streamline this process seamlessly, given the increased prevalence of electric vehicles. .

Now, if you’re opting for vertical expansion—adding another story—the strategy would change. Given the likelihood of altering the roof structure, it’s impractical to install solar panels only to remove them shortly after.

Conclusion:

My rule of thumb: if your second-story addition is slated within the next two years, hold off on solar. While you may sacrifice some incentives and potentially pay a premium for solar down the line, it’s a practical move from an expert standpoint.

Unless you have architectural blueprints allowing for solar integration prior to construction, it’s wise to postpone consultations with a solar professional. Roof orientation, pitch, material type—these variables may encounter significant changes post-addition, directly impacting solar panel efficiency. Waiting until the addition is complete ensures a tailored solar design aligned with your home’s final layout and energy needs.

You do not have the proper roof orientation:

This one is pretty straightforward. I know it may not seem that way if you were going down the rabbit hole and trying to research everything there is to know about tilt and orientation and angle and all that solar stuff, but If trees were not a factor on your property, the only thing that really matters is which way your home faces. 

South facing roofs get the most sun exposure. Since the sun is always in the southern half of the sky (in the northern hemisphere), solar panels that face south will receive the most direct sunlight and, therefore, is the best direction for solar panels. This is not to say that if you do not have a south facing roof, you cannot go solar. However, if you only have a south and north facing roof and for some reason decide you do not want panels on the south side because the south side faces the street and you feel as if solar panels do not compliment the home’s aesthetics, then you really are not in a position to do solar. Panels on a strictly north facing roof will just not get enough sunlight and therefore will not be cost effective for you. 

In another situation where it’s the same north-south type of home, but in this case you are open to panels on the front (south side) but you have giant trees obstructing the majority of the sunlight, then you should not put any panels on that side. Unless of course you are willing to remove that tree. The cost of tree removal can be expensive but if it means getting near perfect sun exposure to create optimum solar production, the money made back from electric bill savings will be well-worth the tree removal investment.

Conclusion:

Panels can be installed on west and east facing roofs as well. It’s not only south that works. But if a north facing roof is your only option, it does not make sense to install solar panels. 

You don’t often like change:

If you are the type of person that is usually not comfortable with embracing new norms and getting away from the status quo, then it is certainly possible that solar may not be right for you. 

While getting your energy from the sun using solar panels installed on your roof vs. getting your energy from the grid is really not that different aside from the cost, it’s possible that the savings do not outweigh the fear of change for some people. 

One of the most popular solar programs available which is called a PPA (power purchase agreement), is actually quite synonymous with how you get your power traditionally so the change is really not dramatic at all. But again, to some folk, it may seem like a significant change.

A story about my grandmother and her resistance to change:

Take for instance my grandmother. I remember when she refused for years to purchase a microwave because she was not ready to embrace new technology. She didn’t get a microwave until the early 2000’s which by then was at least 2 decades after microwaves rose to popularity.

The point is, no matter how easy the switch is, no matter how synonymous it is to how you’re already getting your power and no matter the money savings it reaps, for some people it just won’t ever make sense. At least not for quite a while, like my grandmother with the microwave. 

If you feel that you are this type of person, I would recommend holding off exploring the possibilities of solar for you and your home with a solar professional until you are 100% ready to embrace it.

Conclusion:

If you are curious about it, but know that no matter what, you will never want to install panels on your roof because of all the perceived fears, then my recommendation would be to do lots of research online and read reliable sources before scheduling a consultation. You must first need to be open and willing and almost excited to make the switch. If you are like my grandmother who is closed off to new technology no matter how much it can improve your life, then it’s best to approach the idea of it slowly at your own pace.

Here are 3 scenarios where it still makes sense to go solar, even though you may perceive it as a barrier:

1. Not going to be in the home forever
2. You want to wait for more advanced technology
3. Electric bills are low

Let’s now look at each one of these a bit closer.

Not going to be in the home forever:

Many homeowners believe that if the home they’re in is not their forever home, then solar wouldn’t make sense for them. Some think it’s only worth it if they’ll be there for at least a decade. Others worry about potential moves or unforeseen events, believing solar isn’t a viable option. Either one of these is true and it’s time to debunk this myth once and for all.

The truth is, you don’t need to stay in your home for an extended period to enjoy the benefits of solar. You could have solar panels installed tomorrow and move two years later, still reaping some of the advantages. The process of transferring your solar system when you sell your home depends on how you acquired it. Either way you acquired your solar, whether flat out purchase or a finance, the method of transferring are all very similar.  But let me assure you, if your solar provider offers hassle-free transfer options, no matter how you acquired it, it’s much simpler than you might think.

I’ve helped numerous customers install solar on their first homes, only to assist them in getting it for their second homes later on. If it were overly complicated or hindered home sales, people wouldn’t keep coming back for more.

The topic of solar system transfers deserves a detailed article of its own which I placed below this topic under Related Articles.

Homeowners are understandably curious about how the process works when they sell their homes, and I can’t cover all the details here. But I want you to know that if concerns about moving are holding you back from solar, it doesn’t have to be that way. Nowadays, especially with popular options like Power Purchase Agreements (PPAs), selling a home with solar is often easier than dealing with utility companies. Please read article below.

Story of a friend and his experience moving:

I can recall a recent story that highlights this fact. I was in the car with a friend recently when he had to call his electric company to let them know that he had moved. Because he moved a week or two before he called his utility to let them know he is no longer living there, it was a huge ordeal. My friend ended up having to pay hundreds of unnecessary dollars because his timing was off, but to his defense, he was not aware that he would be charged fees and other penalties for having some sort of lapse in his account.

This might have been an isolated incident, but the point is that when he tried to let the electric company know that he was moving and going to a different part of town with the same energy provider, it was to my surprise, a much more difficult and frustrating process than I imagined. 

I’m not saying every utility company makes it difficult and I am not saying every solar company makes the transfer easy, but I will say the right company will make it painless. 

The point is that the remote possibility of moving in a few years should not be a factor in your decision to go solar.

If you opt in for the program that lets you get solar for zero down, and the monthly payment for your solar is less than what you are currently paying to your electric company, then that is immediate savings.

So if you move 3 years later, who cares. If you went with a reputable company, you didn’t spend any new money, you only saved some, and you get to sell a home with a low cost of energy, environmentally better, and with energy price protection. A home like that will typically sell faster than a home without solar.

Here is a link to an article CNBC released a few years back describing in great detail how solar can raise the value of your home. This was an extensive study done by Zillow. The 10 states where solar power can boost a home’s value

Conclusion:

Will there be some people who do not want to adopt a home with solar pre-installed? Of course there will be. But for every one person that does not want a home with solar, there are 3 more who do. You are opening up the pool of buyers. No matter how you look at it, when you put your home on the market with solar assuming the company you positioned yourself with used great equipment and has transferable warranties, and the home is properly marketed boasting its lower cost of ownership due to having lower cost of energy, you will not have a problem selling the home. Compound that with rapidly rising utility costs in the next few years, more adoption of electric vehicles and the increasing popularity of solar panels, the odds of you having a hard time selling your home is pretty slim.

Related Articles:

Realities of Selling Your Home With Solar

You want the most advanced technology:

I often encounter this perspective in casual conversations about my work. When the topic of solar comes up, I frequently hear, “That’s cool, I’ll do it once the technology improves.” It always triggers an internal chuckle because it reflects an amusing mindset. Because if we applied this logic universally, we’d never make any technological purchases. After all, technology is always progressing. So, where do we draw the line? How long are we willing to wait? Admittedly, it’s not the most rational approach. Imagine waiting indefinitely for the next big technological breakthrough before making any purchases. You’d never buy a car, a TV, or even a phone! The truth is, while we may dream of flying cars or brain-implanted phones, we need practical solutions for the present. So, while we wait for these futuristic innovations, should we resort to using rotary phones or stick to walking? Should we continue using fossil fuels and natural gas until solar panels become invisible? Or should we embrace the alternatives available now? It’s worth considering.

When it comes to solar technology, it’s a whole different ball game compared to consumer electronics such as cell phones, computers, and televisions. Unlike these rapidly evolving gadgets, solar technology progresses at a much slower pace. Its progress is primarily gauged by efficiency, a metric that hasn’t seen significant change over time. In simple terms, solar efficiency measures how effectively solar panels convert sunlight into usable electricity. Think of it like the efficiency of a machine in turning fuel into energy. Higher efficiency translates to greater electricity output from the same amount of sunlight, making solar panels more adept at powering your home.

Consider the past decade: solar panel efficiency hasn’t seen significant leaps. Ten years ago, the average efficiency hovered around 18-19%. Today, with top-of-the-line residential panels, we’re nearing 23-24% efficiency, with average panels falling between 20-22%.

While each percentage point does contribute, waiting for higher efficiency could mean delaying your transition to solar for another decade, only to potentially install a few less panels on your roof. Not the most prudent move, especially considering the money spent on electric bills during that time—the money spent on electricity bills over the span of a decade could likely cover a substantial portion of the cost of a solar system.

The truth is, solar panel technology has reached an impressive plateau. While panels may be growing in size to accommodate greater power output, it doesn’t necessarily equate to technological advancements. The technology available today is robust enough to power your home for the next few decades, with minimal degradation. Tier one solar panels, for instance, degrade at less than half a percent per year. Over 25 years, that’s a mere 10-15% loss in original power—a remarkable feat compared to earlier iterations. Let that sink in: current solar panel technology enables you to invest in a system that guarantees a steady power supply for the next 30 years, freeing you from grid dependence. It’s truly remarkable! 

Conclusion:

So, here’s my advice: if you’re in a state with favorable net metering programs and incentives for solar, seize the opportunity. Invest in the best solar technology available now while capitalizing on government incentives. The government is basically throwing money towards homeowners in certain states to transition to solar. So if you have the foresight to do it now in 2024, and the conditions are ideal for you and your home to be qualified for solar, it would be wise to take advantage of it.. Because in another decade, while solar tech may have improved, it’ll likely come at a steeper price, with incentives dwindling and favorable policies disappearing.

Electric bills are low:

Despite popular belief, even if you have a low monthly electric bill, it still makes sense to go solar. Now, what qualifies as “low” can vary greatly depending on perspective. For some, a $300 electric bill might be considered low compared to other monthly expenses, while others might deem a $90 bill as high. Interestingly, many solar companies tend to disqualify homes with an average electric bill under $85. Why? Well, the minimum monthly payment on a solar system, particularly if you’re financing it or opting for a Power Purchase Agreement (PPA) or lease, typically equals or surpasses this threshold due to a minimum panel install count. Consequently, homeowners may fail to grasp the benefits of transitioning to solar when faced with a solar payment similar to their current utility bill.

This is where understanding the principles of the actual benefits of solar really needs to come into play here. Yes, maybe you have a “low-to-you” electricity bill, but the first thing that needs to be considered here is not necessarily the monthly electric bill amount, but the cost of the actual power that the utility company charges. That is the number that needs to be analyzed. If the cost of the unit of electricity, usually the “price per kwh” is less than the equivalent cost of solar price per kwh, then you would need to figure out just how much lower? And also, if it is lower than what solar price per kwh is, how long will it stay lower? Because we all know electricity is a commodity, and electric prices do always go up. How fast it rises and by how much is just a matter of your utility company and the politics of your state. Let me recount an actual scenario i once encountered where analyzing the homeowners electric bill was crucial and then we will get back to this in detail:

A story about a NJ family with a low electric bill:

I once met a family in a small town in northern NJ that was interested in pursuing solar. When I looked at his bill, my immediate question was, “so what exactly do you hope to achieve by going solar?” I asked this because of how low his monthly bill average was. It was $60 a month. But I also knew he was still a candidate because I didn’t actually look at his price per kwh at that moment. I just thought maybe he was doing this for clean energy reasons. He said his goal was “savings”. So I took a deeper look at his electric bill statement and noticed that his price per kwh was about a quarter of what the average cost is in northern NJ. It was about 6 cents per kwh. That is unbelievably low compared to the rest of the entire state of NJ. It was because in the town he was in, they had a private utility company that only serviced this small town. I had never seen anything that low before. So I told him that unless he doesn’t mind spending more money per month on solar because maybe he is also doing this for environmental reasons, then this wouldn’t really make sense for him. Unless of course he was planning on purchasing the system out right. In cash. Turns out he didn’t have the cash to purchase a solar system but if he did have it, it would be the only way that going solar would make sense for him. 

This was one of those scenarios where it really wouldn’t make financial sense to do a solar loan or ppa because of just how cheap his electricity was. And the fact that his utility company raised rates very slowly. 

I wanted to illustrate this point because even though it is a rare case, it emphasizes the importance of comparing the price of your utility company’s electric costs vs what solar power costs are. Not just your monthly bill amount. 

Conclusion:

I have met with thousands of homeowners over my career in multiple states, California, New York, New Jersey, Connecticut, in multiple towns and jurisdictions and this was the first time I encountered that. A very rare scenario. So for the majority of us who are with a major public serving utility company, even if your bill is “low”, it’s not because of your price per kwh, but because of the amount of electricity you are using. And for that scenario, no matter how low the bill is, it still makes sense to go solar. And that is because the cost of the energy that the solar panels produce is cheaper than the cost of the energy that the utility company sells it for. And even more importantly, the cost of that solar energy is locked. It is fixed at a certain rate that is not subjected to or vulnerable to traditional utility rate hikes that we see time and time again. 

It’s all about understanding the principles of solar:

This is the basic principle of solar that needs to be understood. The monthly cost savings you receive by switching to solar is more of a by-product of going solar than anything else. The main benefit is price protection. Inflation is a constant, almost like taxes, death and gravity. Even if inflation is low, prices on almost everything go up year after year. And that is especially prevalent in today’s climate with record high inflation. Not to mention electricity is the most in-demand commodity in the world. So combine those two things and you would be hard-pressed not to believe that energy prices are going to go up exponentially in the coming years. This is where solar especially shines. You are protected from that. And that is the main value proposition that is provided by utilizing solar energy. This is why it is important to meet with a professional to analyze your electric bill. It’s the cost of the power that matters more than the amount of your electric bill. 

To wrap it all up:

The next time a solar professional comes to your home and presents the idea to you, don’t turn your nose up at it just because you believe your bill is low. It will not stay low forever. Some states’ electric prices doubled overnight, while some other states have a steady annual increase of well above inflation. So while the incentives are still high and the federal tax credit is still available, capitalize on the opportunity to lock in your cost of power. At the very least, schedule a consultation with your local professional, have them analyze the bill to make sure you are qualified and learn how this can help you.