“Sunshine is free.” Solar panel sales companies hammer the point over and over; they know it’s an idea that resonates with potential customers.
That opportunity to harness a free and renewable energy source appealed to David and Kathryn Reed. The couple did some research, talked to several companies, and decided to install solar panels on the roof of their home in Hillsboro, where they are members of Lancaster-based South Central Power Company.
The Reeds wanted to save money, avoid outages, and “help keep the Earth green, too,” David says. And the solar companies they spoke with made the project — which would cost $30,000 to $50,000 — sound like a no-brainer.
Gary Kinzel has been pleased with the performance of his home solar panels, which are mounted on his barns.
“The first company made it sound like we would have instant savings, that we would have no electric bill at all,” Kathryn says. “It sounded good to start with, but when we really started digging in, we realized maybe it wasn’t right for us.”
Before they pulled the trigger, the Reeds reached out to Kyle Hurles, an energy advisor at South Central Power. Hurles met with them to review their goals and go over the results they could realistically expect.
“We realized right away we were going to have an electric bill, no matter what,” David says. “One company said the solar panels would provide 90% of our electricity, which might be true on a sunny day, but wouldn’t help us at night or in the winter. Unless we invested even more in batteries, we’d still be paying for electricity at night and when it’s not sunny — and we’d still be subject to outages.”
Once they and Hurles examined the numbers, including the initial investment and a realistic calculation of how long it would take to recoup their costs through savings, the Reeds decided against installing solar panels.
“For us, there were more cons than pros,” David says. “A big factor for us was our age. At the time, I was 70 and I realized I’d have to live to 105 to see payback on the investment. I probably won’t make it that long.”
“South Central Power helped us immensely, providing a lot of information the solar companies didn’t,” David says. “They didn’t push us either way, but helped us understand all the factors. It’s not an easy decision, but well worth your time to investigate before you sign on the dotted line.”
Peter Niagu, business development and key accounts coordinator for Paulding Putnam Electric Cooperative in Paulding, frequently assists members who are considering home solar projects.
“The first thing I ask is what their main objective is,” Niagu says. “Nine out of 10 times, they’re looking to lower their electric bills, so before we even get into solar, we discuss the many other ways to reduce electric usage. There’s a sensible way of figuring out whether solar is for you.”
Niagu walks members through a step-by-step process, starting with the low-hanging fruit of efficiency improvements: having a home energy audit, improving insulation and air-sealing, and then maybe even moving to more energy-efficient heating and cooling systems.
Many members have high bills in the winter because they have inefficient electric heat, Niagu says. “But in Ohio, solar generation is not great in the winter. If they’re hoping solar will reduce their bills, they’ll be disappointed. If they invest in a geothermal system, their investment will be about the same, but they’ll recoup their costs much more quickly.”
For homeowners with high energy costs in the summer due to air conditioning, refrigeration, or pool pumps, solar panels may make more sense, Niagu says. “In those cases, they’re offsetting high energy use when solar panels are producing the most.”
Home solar also can be beneficial for homeowners whose goals are primarily environmental — to reduce their use of fossil-fuel energy — rather than financial.
When Gary Kinzel built his all-electric house in the country near Lancaster in 2008, he designed it to be highly energy efficient and considered adding solar panels. “I was really interested in energy conservation,” he says.
At the time, the costs were prohibitive, but as solar panel prices dropped over time, he reconsidered. In 2021, after talking extensively with folks at his co-op (he, too, is a South Central Power member)and researching contractors, he had 20 solar panels installed on the south-facing roofs of two barns on his property. After about a year, Kinzel says, it was clear the panels weren’t producing the amount of electricity he had anticipated, so he added eight more.
His total investment was about $30,000, and he’s been pleased with the results. Any excess energy the panels produce goes onto the electric grid, and South Central pays Kinzel wholesale rates for that energy. He pays retail rates for any electricity that he uses from the co-op, mostly at night or on cloudy days. That setup, often referred to as “net billing,” is common among co-ops. “My bills aren’t zero, but in the summer, they’re close to it. During the winter, though, the solar production is low, so I’m paying more.”
Kinzel considered adding battery storage as a way to avoid outages, or even to go completely off the grid. He decided against it because it was “horribly expensive” — besides, South Central’s high reliability and relatively low kilowatt-hour costs made his current set-up more practical.
Kinzel took advantage of tax rebates for his solar project and worked with a good contractor, but he says it will take many years of savings to recover what he’s invested.
“The solar companies talk about payoff periods of about 10 years, but that’s not going to happen, at least for me,” he says. “Their estimations of production from the panels are really quite optimistic. You have to take what they say with a grain of salt, but the co-op was very honest about what makes sense and what doesn’t.”
Additionally, Kinzel says, as retail electricity prices rise, the value of his solar panels will also go up.
“This wasn’t necessarily a good investment, economically, but that wasn’t why I was doing it,” he says. “It feels great when I have really low electric bills, and I know I’m actually doing something for the environment.”
Rooftop reality
When it comes to home solar contractors, Brett Perkins has seen more bad than good.
Perkins, general manager of Tricounty Rural Electric Cooperative in Malinta, has counseled countless members considering home solar, including running calculations that inject a dose of northern Ohio reality into sunny-sky results promised by some prospective vendors.
“A lot of the solar companies tell members they’ll no longer have an electric bill, but that’s not the truth,” he says. “Our minimum monthly charge doesn’t go away when someone adds solar panels. And I have a hard time with the numbers many solar companies come up with. I have yet to see a residential case where solar will really save them money.”
It's not that a solar company is outright lying (though some do). A salesperson may well be realistic about the production capabilities of the solar panels they’re selling, but simply not have the local knowledge to account for other things like geographic factors or the actual rates the co-op charges and pays for energy. “I’m a numbers guy and I’ve looked at it over and over,” Perkins says. “I know if someone is telling you you’ll get your money back in five to eight years, that’s likely false.”
Here are steps members can take — before signing a contract — to avoid some of the worst pitfalls:
- Research solar companies, checking references from customers and the Better Business Bureau (Perkins noted one company he checked had 2,000 to 3,000 complaints per year filed with the BBB). Talk to multiple companies and get several quotes.
- Talk to your co-op to verify rules and rates; learn whether the co-op offers net billing or net metering for home solar panels — and know what that difference means.
- Use the rates to calculate realistic costs and savings. Include added costs like interest paid (if you’re borrowing money) or interest lost (if you’re taking money out of an interest-bearing account) and savings from tax credits or rebates.
- Discuss your plan with your insurance company. Some may charge extra or even cancel a policy when panels are installed.
- Finally, before signing any contracts, consider how long a company has been in business and think about how long they’ll likely be around to provide warranty coverage. A company going out of business can leave consumers paying for years or decades for panels that might not even work.
“There are good companies out there,” Perkins says. “Many people want to do solar for the sake of their kids and grandkids. I’m not against it, but It’s a huge investment, so do your homework, do your research, talk to several people, and ask the questions so you won’t be sold a bill of goods.”
