Dear Prudence: If Solar Makes Financial Sense for a CPA, Could It Make Sense for You?

Project: Harms Residence
Location: Monticello, IA
Installer: Energy Consultants Group LLC
Date Commissioned: February 2014
System Size: 60 250W modules
Module Manufacturer: MAGE SOLAR
Array Capacity: 15kW

Project: Bower Residence
Location: Anamosa, IA
Installer: Energy Consultants Group LLC
Date Commissioned: January 2014
System Size: 48 250W modules
Module Manufacturer: MAGE SOLAR
Array Capacity: 12 kW

 
This is a story of a solar installer and two of his customers – a man who imagined solar powering his residence and workplace – and his CPA, who ran the numbers and was inspired to follow his example. Upon recognizing that solar energy can help a household live within its means, these Iowans decided that going solar was not only a good idea, it was a prudent idea that made sound fiscal sense.

John Harms lives on a 120-acre farm in Iowa. He had considered installing a home-based solar system for years, influenced by his ever-growing energy bill averaging $250 per month and by his daughter Katie, a LEED-accredited architect who helped educate him on the benefits of solar. When Harms met Jason Gideon of Energy Consultants Group, consideration became action. He asked Gideon to complete a site assessment for his residence.

When he received the proposal, Harms was impressed with the relatively short payback period and compelling financial argument for investing in solar. But just to make sure, he asked his longtime CPA, Dennis Bower, to analyze the proposal. Bower considered how federal and state income tax credits might affect his purchase. ”We discussed the money John thought he would save, as well as the savings in fossil fuels,” said Bower.

Bower’s conclusion? Solar not only made good financial sense for his client’s home, it also made sense for his own home.

“If solar makes financial sense for a CPA, it makes sense for anyone,” quipped Gideon.

Gideon steered both customers toward an ACPV solution with integrated microinverters from SolarBridge Technologies: “This system offers safer, higher, and more reliable output than what any DC system can offer,” Gideon said. “We’ve been using SolarBridge exclusively for over a year now. It is simply the best product we have ever worked with. The system is so simple and so fast to install. Once I tried it I just fell in love with it.”

Gideon said the system’s warranty has been a major selling point: “You tell a customer you can offer a 25-year warranty on the whole unit – that’s a selling point for people.

“Always focus on quality, that’s what my Grandpa said.”

Gideon said both homes were producing more energy than what was modeled. In February 2014, a month with numerous cloudy days and several snowfalls which blanketed the array, Bower’s array still generated more power than he needed. In March, the electrical company’s net metering program allowed Harms to bank 129 kWh of energy to use at a later date.

The promised long-term financial returns made good sense to both Harms and Bower. “My goal was to eliminate a rising utility bill, and to do what was right from a sustainability standpoint,” said Harms. “I took our average electric bill and had Jason increase it by 15%. We wanted room for growth. Our goal was net zero or a little better.”

Bower’s goal was also net zero: “We could lock in today’s prices and in our retirement years not be at the mercy of the electric company.”

They got net zero and more. Harms estimated that his investment will pay for itself in five to seven years. Bower (“I’m a CPA and conservative”) calculated that in the worst case scenario his breakeven point might be 11 years. No matter which estimate proves more accurate, Harms pointed out that once the system is paid for, “everything after that is a treat.”

Gideon said that both men are like “proud fathers, comparing rebates, incentives and production data.”

“It was a good decision,” said Bower. “It adds to the resale value of our home too.”

Echoing Bower, Harms said he was “glad I made the decision to do it, and would certainly encourage anyone to take a serious look at it. Particularly if you believe in having a plan for our grandkids and great-grandkids.”

That’s the end of this particular Iowa tale, but there will surely be others to tell. After all, if solar makes good financial sense to two prudent Iowans, it’s bound to make sense for the rest of us.