PODCAST TRANSCRIPT EPISODE 3 : HOW TO PLAN YOUR SOLAR PROJECTS COST-EFFECTIVELY?

 

 

Transcript

Karellys  0:00 

Hello again, this is Nassau national cable podcast. This is Karellys, your host. And today with our new episode, we have Vita as our resident expert in anything, everything electric, we're going to be discussing how to plan your solar project cost effectively. Vita, hello, thank you for coming back with us. It's always a pleasure.

Vita 0:25 

Thank you Karellys, it's a pleasure to meet as well.

Karellys 0:28 

Thank you for taking the time again to discuss a little bit about this project. So today, we're talking about solar energy, and how we can convert that energy into electrical energy that we can use at home. So, I want to give like a very brief introduction about solar energy and I want to clarify that solar energy is any type of energy generated by the sun. So, the solar energy can be harnessed directly or indirectly for human use, and we can do this convert in sunlight into electrical energy, like I said before, through something called photovoltaic panels or something that we commonly refer to solar panels, and then we store this and batteries and so on and so on. So, this is a very, you know, general kind of description of how the project goes and Vita as our expert, she will discuss it a little further and with more detail on how we could make this project a reality. So, Vita, can you tell us a little bit more in depth as to how the solar energy can be transferred into electrical energy and what are some of the advantages of us taking the step or making the decision to change to from regular energy to solar energy?

Vita 2:11 

Yeah, sure. So, solar energy basically uses the light of the sun and its heat to generate renewable power. And the most common form of solar energy is harnessed by solar panels or we also call them photovoltaic cells. And in photovoltaic power station photovoltaic cells are arranged almost edge to edge in order to capture the most sunlight. And solar cells basically generate electricity by absorbing sunlight and using the light that and the light of the sun to create an electrical current. So, there are several advantages to using solar energy. And first advantage is that it is considered clean energy. So, it's mostly carbon neutral, we couldn't say that it's like absolutely carbon neutral, because sometimes fossil fuels are involved in some steps of creating solar panels, but mostly, in most stages of its operation, solar energy is free of fossil fuel inputs, and it causes no carbon emissions when it operates.

Karellys 3:40 

So basically, that's, that's why it's carbon neutral, because solar energy per se, the process of transferring it to like electrical energy is just carbon neutral. Yes, it involves, you know, in the process of making solar panels and cables and maybe the batteries might invoke fossil fuels, might, not 100%, might, this is why it's so good for the environment, because the solar energy is coming from a renewable source like Vita, I was saying the sun.

 

Vita 4:20 

Yeah, so for installation, solar energy causes no pollution. And it's also great because it serves as a great alternative to fossil fuels, because solar energy, it can help us to reduce dependence on traditional energy sources. And that's what we want. And both because for the environment, and because fossil fuels will end one day, and we need to think how to make our energy consumption more sustainable.

Karellys 4:56 

Right. Correct. So, all the advantages are more than anything for the environment, it costs a little bit a lot at the beginning, so the upfront charges are going to be a little bit high. But under long term, the it ends up being something that is cost effectively. So, I want you to discuss a little bit about what incentives are now in place for us to make the change from regular energy to solar energy at homes.

Vita 5:49 

Yeah, you're absolutely right. So, the upfront costs of solar panel can seem like a lot to some people. So, it is basically between $10,000 to $25,000 as per this year, but with incentives, this cost can be reduced up to 3%. And the most important, incentives that you should know about is further federal solar investment tax credit, and also state tax credits. So, a federal solar tax credits, it reduces the amount of federal taxes that you pay a link to purchasing photovoltaic systems. And in 2022, federal tax credit for solar systems is 26%. But currently, it is at its highest that we know of because each year as the incentives reduces, so in 2023, it will be 22%. And there is still no law for 2024 and upwards. That's why if you want to take the maximum most out of federal solar tax credits, you should buy your solar panels as soon as possible. But it's not the only incentive that you get, because we also have state tax credits. And they could be just as high for example, as of last year, as the state solar tax credit in New York is 25%. And as the states like Texas, and California also offer high state tax credits, and if you put state tax credit and federal tax credit together, it's somewhere in 40% range. So maybe, depending on your state, it could be like 45 or 47,48, or something like that. So, you shouldn't be afraid of the initial cost of the solar panel, because you will get a lot of money back.

Karellys 8:03 

Yeah. Right. So that is a good incentive if we're talking about money, because how much in average, does it cause, to go ahead with the installation?

Vita 8:22 

Yeah, just like I said, it's between $10,000 to $25,000, but it depends on different factors, actually. It's without it, I'm just saying is these prices without tax credits, so it's just right before tax rates are applied, but hard to tell, because it depends on a lot of factors, including the size of the panels you want to install, your electricity consumption in your home, type of panels that you choose, installation costs in your state you are, depending on different companies. And it also depends on the state of your house. For example, one thing that is important is the state of your roof. If your roof is in an excellent state, and you don't need to pay for its maintenance before installing solar panels, and you if you have some issues with your roof, you might have to pay a little bit more.

Karellys 9:26 

Got it. Okay. Well, 20,000 At most, could we say?

Vita 9:32 

No, I'd say 25,000 at most.

Karellys 9:35 

Okay, so 25,000 At most considering everything. And if you get a 26% tax credit just from the government, right? That's the federal government tax Grant

Vita 9:51 

No, it’s just the federal one, but you'll also get state one, so it's not just this.

Karellys 9:56 

Exactly!! So, imagine how much money you get back just for the installation. Now estimated savings that you could present, or that you could get over the use of the solar panels at home for about 20 years or something like that, it could, you could be saving as much as basically what $20,000 in, not just upfront, but like throughout the years of usage. This is, I mean, if we're talking about money, and if we're just going over the economical aspect of the project, this is a very cost-effective project, wherever you see it, especially with all the incentives that the government has given us, I definitely would go for it if I had a house of my own, not just because of the monetary incentive, but also because it's beneficial for future generations, which is, you know, my kids, my grandkids, etc, etc. And all the other kids that are coming to this world, I need to have a clean environment to survive. So, think about that, when you decide that you want to go through with this project. Definitely thumbs up. So, thank you, Vita, for all those Do you have anything else that you think might incentivize people to kind of go ahead with this project?

Vita 11:31 

Yeah, so actually, like, you can return the price of a solar panel in anywhere between three and nine years.

Karellys 11:39 

Oh, so that's even better.

Vita 11:42 

So, you don't even have to stay in your house, if you want to sell it, because the price of houses on the market grows if you have solar panels installed. So, you don't have to tie yourself to the house and live there forever if you want a solar panel, because it will benefit you even if you choose to sell.

Karellys 12:01 

There you go even more incentive. This is good wherever you see it. Okay, I mean, everything has two sides, right? Everything is having its good side and its bad side. So now that we have discussed all the incentives, now that we have discussed every benefit that we could enjoy from making this change, how about we talk about the costs of solar panels, and how much has changed throughout the years?

Vita 12:32 

Well, throughout the years, the cost of solar panels has changed for positive because with new technologies, solar panels keep getting cheaper. And if we compare the prices that exist right now to the prices of, let's say 2012, then the cost of the solar panels has fallen, maybe 70 80%. So, with new technologies, and with the growth of the solar market, we have some of the most attractive prices right now. But in the context of a few years, things may not be so positive because we are currently affected by inflation. And in 2022, the prices for solar panels had gone up approximately 10 to 20% Compared to last year. So, it's because of the inflation and also because of the increase in prices for raw materials and also some supply chain issues that existed because of the

Karellys 13:43 

current situation we're living off

Vita 13:46 

Of course, and COVID-19 has contributed a chain issues and we are still affected by it.

Karellys 13:53 

Yep, I can only imagine. And unfortunately, we also going through war. So that negatively impacts everything that happened.

Vita 14:05 

We have to look for positives here. And when we like discussing the prices of solar panels, we should remember that solar panels don't just exist in vacuum. And like you said, War and, other kind of crisis in the world, they also affect the prices for fossil fuels. So compared to traditional energy sources, solar can still be a good investment, independent of inflation and other factors because fossil fuels are also growing in price.

Karellys 14:42 

Absolutely. Yep. That's understandable. Well, those are factors that unfortunately we cannot control. We just have to live through them and make the best of it. Again, still a project that is cost effective like Vita was saying, the cost of the solar panels has decreased through time. Yes, right now we are seeing increases in prices on everything. But they're still cheaper than they once were when the solar energy came out as a possibility for homes. So still cost effectively so far. Now, Vita, I know, we talked about $25,000 and at the most, for the upfront cost of installation and stuff like that, but do you have any tip that could help homeowners or business owners to cut down on this cost of installation?

Vita 15:47 

Yeah, sure. So, first of all, you should use federal tax credit and state tax credit and do your research and make the most out of it. But also, there are payment plans that are offered by most solar companies. This form of financing is helpful if you're negatively affected by the initial installation code, because you can finance your system with deals like zero money down or some sort of percentage that solar company gives to you. So, you can just take the initial call cost and stretch it for a certain period of time, whether it's a couple of months or a couple of years. So do your research and choose the best solar companies that offers you something that will help you ease in the initial burden. And you'll be great. But also, additional incentives, not just from solar company and not just federal and state tax credits, sometimes there are different types of incentives from the government, for example, in some states, the authorities grant solar renewable energy credits to people who purchase solar panels for the first time and seeking to get a property tax abandonment for green property. For example, this is offered in Texas, also such thing as a net metering in states like California, North Carolina and Florida, you can be credited for any excess energy generated by your solar panel.

Karellys 17:45 

Well, on top of all the incentives and the credits that we're getting from the government and the states and stuff like that, they're going to pay you for the money that you generate it for that Yeah, I mean, let's talk about cost effective, guys. Like this is amazing, right? I don't see any negative side on us making this change. This is absolutely my to do list once I get my house. There's no question about it. And how does this work? Like, you use store the energy or you transfer transformed solar energy into electrical energy, you distributed through the house, and then whatever it is that you don't use, what in a month? You're going to share? Uh huh.

Vita 18:36 

Depends on your plan there. It's not a federal plan. So, each state can have different kind of incentive for net metering. Also, these programs are not stable in times they're offered for short term periods. So, the conditions may change. That's why you just have to check what's offered right now and make your purchase and go from that.

Karellys 19:04 

All right, absolutely. So, the best tip that Vita and I can offer you right now is do your research before you go into any project. This one, remember, is a very expensive project upfront, that is going to be cost effective to you because of all the tax credits and incentives that are currently in place, with the government and on each state. But it changes very drastically as we are currently in a very unstable economic world. So, we got to do our research and make sure we take the right approach on this project. Um, okay, that's good. I still don't see any negative side to it if you asked me, but again, don't go with what we're saying. Do your research. Google is a very powerful tool, the internet, as well as magazines, newspapers, books, read all about it. And always make sure that you're going with a certified solar energy company and your electrician knows how to do this kind of projects. It's not easy, and it's not for everybody. So always make sure that you're going with certified companies and workers that can guarantee a good service, a good installation, otherwise, this all these cost-effective tips that we have been given you are for nothing, because you're going to end up paying more for your repairs.

Vita 20:50 

Right, so you have to choose a company that offers you warranty. Basically, the average one is 10 years, and this is what I would recommend. So do not choose the company that doesn't offer you at least 10 years of warranty for its services.

Karellys 21:09 

So, we can say that minimum, the solar panels can be good for 10 years, minimum, but how long,

Vita 21:18 

Like absolute minimum, but depending on maintenance, depending on the panel, it can be anywhere between 10 /25/30 years.

Karellys 21:30 

There you go. So, I'm going about long term. Anyways, um, you know, a lot of our listeners might find this interesting. So, for all those listeners who stay with us till the end of the podcast, we have a little surprise for you guys so stay on the podcast until the end it I'm pretty sure that you will not regret staying through the whole show today. So, Nassau National Cable is a distributor of electrical wires and cables. We have wires and cables for everything and anything, you would like to do any project, electrical project. So, what cables, Vita, from our vast list of products available on our website, can we recommend for this project?

Vita 22:29 

Yeah, so, we have special PV wire- photovoltaic and those for photovoltaic cells and we can use them with aluminum conductors and with copper conductors, so aluminum photovoltaic cable is going to be significantly cheaper than copper ones. So, you can also choose which one is most suitable for you they both are great for photovoltaics cells, but if you want to cut costs, you can go with Aluminum one, and, we have different voltages, we have 600 volts Aluminum and Copper photovoltaic cables and we also have 2000 volts photovoltaic aluminum and copper cables. So, depending on the voltage of your system, you can choose either of those and also, we offer you SE2 cables, which are not exactly photovoltaic cables, but they are also used regularly in photovoltaic panels. And they are considered a cheaper alternative or they can be used only in grounded low voltage, six hundreds walled systems with a temperature rating of 90 degrees Celsius. This is like a standard system. So, a lot of people will find these cables useful for their project as well.

Karellys 24:01 

Okay, so basically you decide what fits best to your budget. But we have everything you need on our website; you just have to go visit us it's www.nassaunationalcable.com You can see all our products available there. You can also go and hear our podcasts on our website as well as read all the different articles that we have available for your information so that you are more informed and more up to date of what's going on in the electrical field. So just go visit us and choose whatever is best for your current project. We have it available there. Vita, I would like to thank you very much for your time. Well before I say that. Do you have anything else that you think it's important for our listeners to know or to have or keep in mind about this particular project.

Vita 25:03 

Well just like to summarize everything that we have already said, I will just say, do your research. And don't be afraid of the upfront costs, because it's an investment that you're doing there.

Karellys 25:16 

Correct. It's a long-term investment. So, we also have a couple of articles on our website that talk a little bit more about these critics, you can just go ahead and go visit our website, again its www.nassaunationalcable.com. Don't forget to visit us there. And you'll see all the information we have available for you. And Vita. Well, thank you very much for your time. Again, thank you for all this very helpful information that you have helped us split available for everybody out there. And definitely looking forward to see you again, on our next episode.

Vita 26:14 

Of Course, My pleasure, always happy to be here.

Karellys 26:18 

Thank you, thank you. So um, those faithful listeners who stayed with us through the entire episode today, we have this surprise of a 3% discount on your purchase of more than $2,000 and wires and cables. Just go to your website and use the code, GARRIE3, that is g a r r i e three to put the code on your checkout and you'll see that 3% discount on your purchase if you're purchasing more than $2,000, all at once. So don't miss this opportunity. This is not for everybody. This is only for you who stayed with us till the end of this episode. And there's no one else to think but Garrie. So go ahead and enjoy. I would like to thank you very much for staying with us all this time. And until next time, see you. Bye Bye.