New Costco System, is it worth it to go solar?

[huge]

Hi. I'm fairly new to this so I need a lot of help. I got a quote from Costco/Sunrun for 6.89 kW system for basically $25000 after cash backs, which comes out to $3.62/Watt, which includes Canadian panels and solaredge inverter. The equipment comes out to less than $8,000. Is it worth the extra money to pay the premium for Costco /Sunrun name backing, or should I find an installer to do it for cheaper? I would have to finance the amount and I'm not sure if the money saved over time would be worth the risks. Also, would it be better to wait until next yer so that prices go down further for better equipment? This is a long term investment that can have a 20 year impact so I want to make sure I make the right decision.

Thanks for any advice, This is a great resource

[solarix]

Not a bad price assuming you are in CA. Sunrun quality is not so great but ok. Prices probably won't come down much in the next year. If you are financing it, you really won't save much on your energy costs until the financing is paid off.... I like SunnyBoy inverters better - does Costco offer those? The new models just released have built in monitoring and have reduced pricing.

[rsilvers]

What do you mean "After cash backs?"

Price quotes should be listed as what you pay the installer. That is the only meaningful way it can be compared to other quotes.

[J.P.M.]

What do you mean "After cash backs?"

Price quotes should be listed as what you pay the installer. That is the only meaningful way it can be compared to other quotes.

FWIW, +1. Rebates, cash cards, etc. are all B.S. clutter that gets in the way of comparison, wastes time, and only increase the price in the end - or at the very best, does not decrease it.

[huge]

What I included was the price to use for comparison. Cash backs actually decrease the price. You get a federal rebate on the pre Cashback price. Basically, you end up getting a 30% extra decrease in cost after the cash back. If you don't understand, let me know and I'll try to explain better.

Thanks for the useful advice solarix

[ButchDeal]

What I included was the price to use for comparison. Cash backs actually decrease the price. You get a federal rebate on the pre Cashback price. Basically, you end up getting a 30% extra decrease in cost after the cash back. If you don't understand, let me know and I'll try to explain better.

Thanks for the useful advice solarix

Not really. You should read the federal incentive more closely. The 30% should be calculated after any upfront incentives including cash back.

[J.P.M.]

What I included was the price to use for comparison. Cash backs actually decrease the price. You get a federal rebate on the pre Cashback price. Basically, you end up getting a 30% extra decrease in cost after the cash back. If you don't understand, let me know and I'll try to explain better.

Thanks for the useful advice solarix

I think I understand the tax code in these matters. Fed. tax credit is on the net balance of sale. NOMB, but not declaring any rebates could possibly be considered tax evasion.

[silversaver]

What I included was the price to use for comparison. Cash backs actually decrease the price. You get a federal rebate on the pre Cashback price. Basically, you end up getting a 30% extra decrease in cost after the cash back. If you don't understand, let me know and I'll try to explain better.

Thanks for the useful advice solarix

I cannot read your mind, but I do think you need to read/reseach more

[ncs55]

Federal rebates are calculated on installation costs and after any cash incentives. These guys are correct. Also the 30% rebate should only be factored into your equation if you can actually use the said incentive. For a price comparison, start with the actual costs of the install vs the system components used and what the predicted output is. Just my opinion, but other companies like to muttle this up and it always ends up confusing the customer.

[huge]

Thanks for clearing that up guys. That would definitely make more sense than what the installers are pushing around

[huge]

I looked at the rebate form, and I can't find any specific information regarding cash backs. Is it possible that they're using a loophole?

Here is what I looked up

https://www.irs.gov/pub/irs-pdf/i5695.pdf

[huge]

To clear it up a little more, they're not offering straight cash back. They offer rebate gift cards, if that makes any difference

[rsilvers]

To clear it up a little more, they're not offering straight cash back. They offer rebate gift cards, if that makes any difference

I see, this is a financing incentive - I forgot about those. When it is done with a car - you are just financing the cash they are giving you. You are borrowing the money:

http://www.realcartips.com/newcars/258-decide-between-zero-percent-cash-rebate.shtml

Dollars-per-watt should really be stated on the up-front-cash price.

If there is a taxpayer-subsidized solar loan, or for the purposes of the 30% credit, it should be illegal, as they are misrepresenting what you are paying for the system. Take it to the extreme - what if they got you the loan for $20,000 more than the system costs, and then gave you back $20,000? You would be getting a solar loan or tax credit and not using it for solar.

[ButchDeal]

To clear it up a little more, they're not offering straight cash back. They offer rebate gift cards, if that makes any difference

They are attempting to, BUT it does not make a difference. If you get any rebate or value back then it either reduces the cost of the system or counts as income (either way works the same on the federal tax forms)

[ButchDeal]

If there is a taxpayer-subsidized solar loan, or for the purposes of the 30% credit, it should be illegal, as they are misrepresenting what you are paying for the system. Take it to the extreme - what if they got you the loan for $20,000 more than the system costs, and then gave you back $20,000? You would be getting a solar loan or tax credit and not using it for solar.

It is the homeowner that is doing the miss-represinting if they fill out their tax forms as suggested. It is illegal.
You can only count what you paid for the system less any upfront incentives. Cash back would clearly count as up front incentive.

so you pay $20k and get $2k in cash back then the federal incentive is (20k-2k) X 0.3 .

[J.P.M.]

To clear it up a little more, they're not offering straight cash back. They offer rebate gift cards, if that makes any difference

Doesn't matter. It's an incentive that reduces the cost of the solar equipment. The onus is on the taxpayer to report it. As a practical matter, do you think the IRS cares what it's called ? Slightly off topic: According to some, vendors ought to be sending 1099's to customers who participate in the screw your buddy referral plans. I know of few who do.