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

[rsilvers]

The reason they would 1099 someone for the referral fee is so that they can tax deduct it. However, they don't need to 1099 someone for under $600 a year, as far as I know. I got a $100 Visa gift card from a car dealer for test driving a Cadillac.

Not sure why it is screwing your buddy if your buddy asks for a referral from you.

As for taxes - my state has a "use tax." So if anyone ever mail-orders anything, they are supposed to pay sales tax on it - self-reported.

[J.P.M.]

The reason they would 1099 someone for the referral fee is so that they can tax deduct it. However, they don't need to 1099 someone for under $600 a year, as far as I know.

Not sure why it is screwing your buddy if your buddy asks for a referral from you.

As for taxes - my state has a "use tax." So if anyone ever mail-orders anything, they are supposed to pay sales tax on it - self-reported.

Understood on the 1099 business. Most tax systems rely on self reporting as the first information source.

On the screw your buddy plan: My experience is that most owners of residential equipment are about clueless how well they did or badly they got screwed. That, in my logic, makes their opinion unreliable for use as a determinant of safety, quality or cost effectiveness. They may have warm & fuzzies about how pretty their system looks or how nice the salesperson was, and that may have some value depending on sensibilities. But since many, if not most solar owners don't know as much as the difference between a Watt or a kiloWatt, or the difference between a kilowatt and a kiloWatt-hour, I wouldn't put a whole lot of stock in the technical aspects of what they think with respect to what makes a PV system safe, fit for purpose, and have acceptably high quality and cost effectiveness. I'm sure they have an opinion, and I'm sure it's that they made a superior choice. My experience leads me to the opinion that there is often little correlation between what they think they got and what's on their roof.

I don't ask my gardener for referrals as to a good dentist. I don't make recommendations about areas where I'm ignorant - which means most everything. Seems a bit foolish to do that, particularly if I value a friendship. What if my recommendation causes a poor outcome ?

Also, believe it or not, there are folks who, getting a system installed,. actually solicit friends (?) and neighbors and act as shills for their vendor, pretty much solely for the referral $$'s. I know that's hard to believe, but I've seen it. For some of the systems I've seen installed and the recommendation from one particular owner to his neighbors, the phrase 30 pieces of silver comes to mind.

Absolutely NOMB, not my house/system/$$/life/whatever, but I might feel a bit more sanguine about referrals if a referral went from the person referring back to the person "requesting" the referral. Just opinion, but what else are friends for ? Seems like something like that might be nice. Maybe it happens all the time and I've just not seen it yet.

FWIW, putting my money where my mouth is, I've had ample opinion sought on vendors from neighbors. I separate that from the HOA duties of review and recommendation of action(s) by the ARC in my HOA. I have not taken dollar one and will not. I've also sent 2 unsolicited referral checks back to vendors marked "void".

Take what you want of the above. Scrap the rest.

[maximizese]

I stopped by the Sunrun booth at Costco a few weeks back just to chat. From what they're quoting you, I think you can do better. If I recall, Canadian Solar is really just a Chinese company and perhaps should be discounted as such. Down in Southern California, I've have a quote at $3.28/watt with Solar World panels and Enphase micro investors from a well regarded installer that has 30 years experience in roofing, 8 years in solar, and 8 years in general home efficiency design (heat pumps/mini splits, tankless/solar water heaters and pumps, etc). I will likely go with them rather than Costco.

[ButchDeal]

I stopped by the Sunrun booth at Costco a few weeks back just to chat. From what they're quoting you, I think you can do better. If I recall, Canadian Solar is really just a Chinese company and perhaps should be discounted as such. Down in Southern California, I've have a quote at $3.28/watt with Solar World panels and Enphase micro investors from a well regarded installer that has 30 years experience in roofing, 8 years in solar, and 8 years in general home efficiency design (heat pumps/mini splits, tankless/solar water heaters and pumps, etc). I will likely go with them rather than Costco.

he likely can do better install price, but Canadian is not a Chinese company and is deffinitly Tier 1. They make good quality products. It is an international company with production in many locations including some assembly in Canada.

[rsilvers]

On the screw your buddy plan: My experience is that most owners of residential equipment are about clueless how well they did or badly they got screwed. That, in my logic, makes their opinion unreliable for use as a determinant of safety, quality or cost effectiveness.

Oh - for sure. The only proof I need to believe that is that when I told some friends I was going to go solar, they said I was making a mistake paying for it because their father or their friend got it for free.

I was just wondering if I was screwing my friends that asked me for a referral when I gave them two companies that had the best online ratings and/or seemed the most knowledgable when they visited me and gave reasonable quotes. Since I spent dozens of hours learning and working getting seven quotes, and I knew they would not put as much time into it, I felt like I was saving them that work and only helping. Now true, I don't know for sure that what I picked would end up being the best for me or them, but at least I was steering them away from PPA and Leasing. So I think I was only helping.

[J.P.M.]

Oh - for sure. The only proof I need to believe that is that when I told some friends I was going to go solar, they said I was making a mistake paying for it because their father or their friend got it for free.

I was just wondering if I was screwing my friends that asked me for a referral when I gave them two companies that had the best online ratings and/or seemed the most knowledgable when they visited me and gave reasonable quotes. Since I spent dozens of hours learning and working getting seven quotes, and I knew they would not put as much time into it, I felt like I was saving them that work and only helping. Now true, I don't know for sure that what I picked would end up being the best for me or them, but at least I was steering them away from PPA and Leasing. So I think I was only helping.

FWIW, only, steering anyone away from leasing or PPA's sure counts for a gold star in my book. (Meant only slightly tongue in cheek.) As for the rest, no offense, but opinions vary as to worth. Seems like one perhaps better referral might be to a free for download copy of "Solar Power Your Home for Dummies". Better, faster and more information. Then, the person referred can ask questions for which they already have answers and maybe get a better read on vendors. Knowledge is power.

[NYHeel]

This was discussed on a different thread but the referral fee that installers pay for a referral doesn't increase the cost of the system and likely decreases it. Solar installation is a very high margin business with a huge cost to acquire a customer. A company saves a ton of marketing/advertising money when they get customers from referrals. Far more than the $500 or so that they pay for a referral.

With that said, when I refer any company to a friend I'm as open and honest as possible. I tell them that I get a referral fee of $X and that while I was happy with them you should check them out in more detail. Also, I always tell them to get multiple quotes. That's for any service referral, not just solar.

And yes, I definitely would steer any friend away from leasing or a PPA.

[rsilvers]

Seems like one perhaps better referral might be to a free for download copy of "Solar Power Your Home for Dummies". Better, faster and more information. Then, the person referred can ask questions for which they already have answers and maybe get a better read on vendors. Knowledge is power.

I downloaded and read most of the book, but was surprised at how little of it was for PV systems.

[J.P.M.]

I downloaded and read most of the book, but was surprised at how little of it was for PV systems.

It tells folks a lot of what they need to know in the first 99 pages or so that many will probably find helpful BEFORE getting quotes. It helps avoid the "ready, fire, aim" syndrome, and includes many things that are probably more or less necessary to make an informed decision as to acquire solar or not, and if so, what to do before solar. As Solarix points out, solar is not a slam dunk. I'd add an opinion that cost effective system sizing and layout take a bit of background information. That's what the book is for. It can't hurt and it's free. I don't agree with all of it, but it's better information than about 90+% of what most neighbors and friends have, which usually amounts to repeating what they've heard from peddlers or folks no more informed than they are.

[ktran1]

I got the quote from Sunrun with Costco, ~6.6KW (not sure Q-Cell panel) for $27000, if I paid by costco credit card I got 1% cash back $270 plus 10% costco cash card $2700. Final cost $24030, $3.6/w. Tax credit based on 27000 is $8100. After tax $2.41/w. Conclusion: Sunrun with Costco is not a best price.

[cebury]

As stated above from other folks, the 30% ITC is based on net cost, after discounts and credits.

As with almost everything tax related, the onus is on the taxpayer... The system relies on voluntary compliance and the fear of tax audit, back interest and penalties (rare cases jail time) is the pressure that encourages said compliance.

[huge]

10% cash card is only towards the price of the equipment, not on the total price, so much lower than your calculations. Also, similar calculations were already done in the first post

[ktran1]

huge: then sunrun with costco is worse. Thanks