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Going solar part 1

In the latest episode of the Joe Knows Better Podcast, Joe Ducey explores the realities of solar energy with industry experts. Joe is joined by Chris Wood and Joe Cunningham, co-owners of Sunny Energy in Tempe, a BBB-accredited business with a decade of experience in the solar industry, and Adrian Keller from Solar United Neighbors, whose mission is to help people go solar and advocate for their energy rights.

Understanding the solar landscape

Phoenix, with its abundant sunshine, is an ideal location for solar energy. However, the solar industry is not without its challenges. Chris and Joe from Sunny Energy discuss the fluctuating nature of the solar market, likening it to a "solar coaster" with its ups and downs influenced by changes in incentives, utility rates, and interest rates.

Financing solar: The realities

A significant portion of solar customers finance their systems. However, rising interest rates have shifted many customers from financing to paying cash. While this is a positive shift for those who can afford it, it limits access to solar for many potential customers. It's crucial to manage expectations realistically. Promises of drastic savings can be misleading, especially when financing a system. Interest rates significantly impact the overall savings.

The importance of honest communication

Adrian Keller emphasizes the importance of honest communication from solar companies. Many complaints arise from misunderstandings or misrepresentations during the sales process. Clear, honest communication about expected savings, tax credits, and system performance is crucial.

Navigating tax credits and rebates

One common area of confusion is the federal solar investment tax credit, which covers 30% of the installation cost. However, this is only available to those who pay federal income taxes. Misunderstandings about eligibility can lead to disappointment and financial strain. It's vital to verify with your accountant whether you qualify for this credit before signing a contract.

Choosing the right solar installer

Selecting a reputable solar installer is crucial. Research and reviews are your best friends. Look for BBB accreditation, check customer reviews, and ensure the company has been in business long enough to establish a solid reputation. Avoid high-pressure sales tactics and take the time to compare multiple quotes. Ensure the installer handles all necessary paperwork and complies with local regulations.

Key questions to ask potential installers

Do you handle all aspects of the installation? Ensure the company manages everything from sales to installation to avoid miscommunication and accountability issues.
What is your cancellation policy? Understand the financial implications if you need to cancel the contract.
How do your financing arrangements work? Ensure the final payment is contingent upon the system being operational, not just installed.

Potential drawbacks and considerations

Solar energy isn't suitable for everyone. Factors like roof orientation, age of the homeowner, and financial situation can impact the feasibility of solar. Ensure you understand all aspects of the installation and potential savings before committing.

At a recent event in Chandler, a 90-year-old woman inquired about the long-term investment of solar given her age. Honest advice revealed that, depending on her utility and system size, the break-even point would be in seven to eight years. Her decision to proceed aimed to leave significant savings for her granddaughter. This highlights important considerations for potential solar adopters, such as how long they plan to stay in their current home.

Energy storage: A critical component

Energy storage allows homeowners to store excess energy produced during sunny periods and use it when rates are highest, usually in the evening. This strategy can significantly multiply savings. While every solar system sold is recommended to include battery storage, a smaller percentage of consumers opt for it, even though it can offer the same savings as a larger solar system without a battery.

Solar United Neighbors: Making solar accessible

Solar United Neighbors (SUN) is dedicated to making solar energy more accessible and affordable. They organize solar co-ops, group buying programs that secure bulk discounts on solar panels and equipment. In Arizona, these co-ops recruit about 100 to 150 homeowners and educate them on all aspects of solar energy, from how it works to tax credits and installation expectations. SUN remains involved even after installation, acting as a watchdog to ensure everything runs smoothly and addressing any issues that may arise.

Smart solar shopping tips

Get multiple bids. Leverage competition to ensure the best value and product.
Check reviews. Confirm the reliability of the company.
Talk to neighbors. Those who have had solar for a few years can provide a more accurate picture of long-term satisfaction.
Avoid high-pressure sales tactics. Reputable companies will provide clear disclaimers in their contracts and follow up with welcome calls to ensure consumers understand their commitments.

Conclusion

Solar energy offers significant benefits, especially in sunny regions like Phoenix. However, it's essential to approach it with a clear understanding of the financial and logistical aspects. By doing thorough research, asking the right questions, and choosing a reputable installer, you can maximize the benefits and avoid common pitfalls.

Additional resources

For more information and consumer education on solar energy, check out resources from the Better Business Bureau, the Solar Energy Industries Association (SEIA), and organizations like Solar United Neighbors. These sources provide valuable insights into how solar works and what to look out for when considering solar energy for your home.

Make informed choices before you hire!, check out reviews at bbb.org. Also check for BBB Accredited Businesses that agree to operate at a higher ethical standard. And check out Joes podcasts and videos helping businesses and consumers get it right. Go to joeknowsbetter.bbbcommunity.org and to the JoeKnowsBetter Facebook page.

Going Solar Part 2

The Rise of Solar in Arizona

With 39,000 solar installations in Arizona alone last year, it's clear that solar energy is experiencing significant growth. However, this surge has brought about numerous challenges, especially for consumers seeking reliable installers. On this episode of Joe Knows Better Podcast, Joe Ducey discusses the intricacies of the solar industry with Joy Seitz, owner of American Solar and Roofing, a company that's been a pioneer in the field since 2001.

The Early Days of Solar

Reflecting on the past, Joy notes that when solar technology was first introduced, it was met with a mix of curiosity and skepticism. Early adopters, often inspired by the technology's presence in places like the White House and NASA, were eager to embrace solar despite the bulky appearance of the initial panels. These early systems had a similar footprint to today's panels but produced significantly less wattage.

Current Industry Landscape

Today, the solar industry is undergoing its third major phase. Joy explains that after a decade of development and another of rapid growth driven by financing entities, the focus is now shifting towards consumer protection. This change comes in response to aggressive and sometimes unethical practices by some companies, which have led to numerous consumer complaints.

Finding a Reliable Installer

One critical step for consumers is finding a reputable solar installer. Both APS and SRP, Arizona's leading utilities, have established qualified solar installer programs vetted by the Electric League of Arizona. This initiative aims to ensure that installers meet rigorous standards and maintain ongoing communication with customers to uphold quality and transparency.

Common Consumer Concerns

Joy highlights several key issues consumers face when dealing with solar installations:

Misleading Sales Tactics: Door-to-door salespeople may make exaggerated claims about utility bill savings and disconnecting from the grid. Consumers should be wary of promises that seem too good to be true.
Understanding Savings: It's essential to understand that savings estimates can vary based on lifestyle changes, such as increased energy use from new appliances or electric vehicles. Homeowners should discuss their energy use habits and future plans with their installer.
Tax Credits and Financing: Consumers need to be aware of the tax implications of their solar investment. Those who lease systems do not receive tax credits, and it's crucial to consult with a CPA to understand potential benefits.
Installation Delays and Loan Payments: Issues can arise when systems are installed but not connected, leading to delays while loan payments have already begun. Consumers should ensure clear communication between the installer, lender, and utility to avoid such problems.

Tips for Prospective Solar Customers

For those considering solar, Joy offers several recommendations:

Evaluate Your Energy Use: Understand your current and future energy needs. Solar systems should be designed to match your consumption patterns.
Research Installers: Use resources like the Better Business Bureau (BBB) and utility company websites to find accredited installers.
Consider Your Roof’s Condition: Ensure your roof is in good condition before installing solar panels to avoid future issues.
Understand Financing: Carefully review loan terms and understand any hidden fees. Get multiple quotes to compare options.
Trust Your Instincts: If something doesn’t feel right during the sales process, don’t rush into signing a contract.

American Solar and Roofing’s Commitment

Joy emphasizes that her company’s mission is to drive revolutionary change through a commitment to employees, customers, and the community. By staying educated and involved in industry and local advisory boards, American Solar and Roofing aims to protect consumers and uphold the integrity of the solar industry.

Conclusion

While the solar industry in Arizona is growing rapidly, it’s essential for consumers to navigate it with caution and informed decision-making. With proper research and by choosing reputable installers, homeowners can enjoy the benefits of solar energy while avoiding common pitfalls. As the industry continues to evolve, initiatives focusing on consumer protection and education will play a crucial role in ensuring a sustainable and trustworthy solar market.