Solar 101: The Good, The Bad, and What It Means for You

The Truth About Solar:

What You Need to Know

Solar is a great investment—but only if you understand how it really works and how to avoid the common financial traps that many homeowners fall into. Most solar companies prioritize sales over service, pushing financing deals that inflate prices and limit your options.

We’re here to break it down so you can make an informed decision.

How Solar Works

Solar panels capture sunlight and generate direct current (DC) electricity. However, your home runs on alternating current (AC)—the same type of power supplied by the electric grid.

✔️ The inverter (or multiple microinverters) convert DC into AC, making it usable for your home.
✔️ If your system is grid-tied, the inverter synchronizes with the utility grid, ensuring smooth power integration.
✔️ If your system includes battery backup, the inverter manages the charging and discharging of stored energy for power during outages or peak demand times.

Key Components of a Solar System

  • Solar Panels – Capture sunlight and generate DC electricity.

  • Inverter(s) – Convert DC to AC power and sync with the grid or battery.

  • Battery (Optional) – Stores excess energy for backup power and peak demand savings.

  • Net Metering (Grid-Tied Systems) – Sends excess electricity back to the grid in exchange for credits.

The True Cost of Solar & Financing Traps

Solar is often marketed as “zero-down” and “a guaranteed way to save”, but the real costs are rarely explained upfront. Many solar salespeople prioritize commissions and financing markups over real savings for homeowners.

Breaking Down the True Cost of Solar

A residential solar system can range from $30,000 to $50,000+, but the real cost includes more than just panels:

✔️ Base System Cost – Standard systems start around $30,000, but most cost $50,000+ after financing fees.
✔️ Battery Backup – Adding a battery can increase the price by $15,000–$30,000+.
✔️ Electrical Upgrades – Panel upgrades or rewiring can add thousands to the project.
✔️ Roof Replacement Considerations – If your roof is aging, you should replace it before installing solar, or you’ll pay an additional $5,000–$10,000 later to remove and reinstall the panels.

The Hidden Costs of Solar Financing

Many solar financing companies inflate system prices with fees and markups that erase any real financial benefit for homeowners.

✔️ Initiation Fees & Markups – Fees range from 0–20%+, but they’re rolled into the loan and accrue interest, drastically increasing the final cost.
✔️ Contractual Pricing Restrictions – Many solar installers can’t offer a cash price because they are bound by financing contracts to only sell at a fixed financed rate.
✔️ Zero-Down = Paying More – Sales reps push financing because it’s easier to sell a low monthly payment—but the total cost is often far higher than staying with your utility.

🚨 Common Sales Tricks:
✅ Overpromising tax incentives – Not everyone qualifies for the full tax credit.
✅ Selling on unrealistic energy savings – Projected savings don’t always materialize.
✅ Hiding finance fees in the loan – Many fees are buried in fine print and accrue interest over time.

The Basics of Solar Energy

Solar panels convert sunlight into electricity, allowing homeowners to generate their own power. The benefits?
✅ Lower energy bills
✅ Increased energy independence
✅ A valuable long-term investment

However, understanding how solar works and how to avoid common pitfalls is crucial.

Types of Solar Systems

There’s no one-size-fits-all when it comes to solar. Here are the three most common system types:

✅ Grid-Tied Solar – The most common setup. Your home stays connected to the power grid, using solar when available and the grid as a backup. Net metering helps offset your bill by earning credits for excess solar production.

✅ Off-Grid Solar – A fully independent system. Batteries store energy to power your home when the sun isn’t shining. Ideal for remote locations or homeowners seeking complete energy independence.

✅ Hybrid Solar (Grid-Tied + Battery Backup) – The best of both worlds. You remain connected to the grid but have battery storage for backup power during outages or peak demand periods.

Maximizing the Value of Your Solar Investment

The real cost of solar isn’t just the upfront price—it’s also how well the system is designed, installed, and protected from future maintenance costs. A poorly installed system can lead to years of unexpected downtime and expensive repairs, but proactive planning can save you thousands in the long run.

1. Extended Warranties: The Smartest Investment

Most companies sell you the system but don’t tell you how to protect it. That’s why we lead with SolarEdge, one of the most reliable and long-lasting inverter brands.

✔️ Standard SolarEdge inverters come with a 12-year warranty, but for just a few hundred dollars, you can extend that to 20-25 years—a drop in the bucket compared to the total system cost.
✔️ We include the extended warranty with every SolarEdge system we install—because protecting your investment shouldn’t be an upsell.

2. Protecting Your System from Costly Pest Damage

One of the biggest hidden threats to solar systems is animal damage—and most companies don’t address it at all.

🚨 The Problem: Many solar companies subcontract installations and don’t have infrastructure for long-term service, leaving homeowners scrambling to find someone to fix their system when issues arise.
🚨 The Cost: We’ve seen systems sit offline for months or even years because pests chewed through wires, causing major electrical failures.

✔️ We include critter guard with every system we install—because prevention is cheaper than repair.
✔️ We’ve seen too many homeowners stuck with unexpected repair costs, so we make sure your system is protected from the start.

3. The Reality of Solar Maintenance

Many homeowners believe solar is a "set it and forget it" investment, but like any major system—a car, a home, or an HVAC unit—it requires occasional maintenance to keep performing at its best.

✔️ Inverters & Batteries Wear Out – Inverters typically last 12-15 years before needing replacement. Batteries degrade over time and will eventually need replacing.
✔️ Roof Leaks Can Happen – If solar is installed incorrectly, poor flashing and penetrations can cause leaks that cost thousands to fix.
✔️ Weather & Pests Can Damage Wiring – Over time, exposure to the elements and pests like squirrels and birds can degrade wiring, leading to system failures.
✔️ Snow & Debris Can Impact Production – Leaves, pollen, and snow can block sunlight and reduce system output, meaning regular upkeep is necessary.

Our Approach: Building for Longevity

At Off Grid Solutions, we design systems to last—not just to sell. That’s why:
✅ We install critter guard to prevent damage from animals.
✅ We include extended warranties for long-term peace of mind.
✅ We offer long-term service and maintenance—because a company should stand by its work long after installation.

A properly installed and maintained solar system can last 25+ years, but choosing the right installer from the start ensures maximum reliability and savings over time. With Off Grid Solutions, you get real protection—not just a sales pitch.

Colorado’s 200% Rule & What It Means for Homeowners

Understanding Colorado’s 200% Rule & Smart System Sizing

In fall 2021, Colorado passed a law allowing homeowners to size their solar system up to 200% of their last 12 months of usage. While this change opens the door for larger systems, that doesn’t necessarily mean you should maximize capacity without a plan.

Why Oversizing Can Be a Smart Move

If you're planning future electrical upgrades, oversizing your solar system now can save you from having to expand it later. Here are a few reasons why homeowners might want to size up:

✅ Adding an EV Charger – If you plan to get an electric vehicle, you’ll need more power to charge it.
✅ Switching to Electric Heating & Appliances – Mini-splits, heat pumps, and electric stoves or water heaters all increase your electricity demand.
✅ Ensuring Full Offset – A larger system means more production year-round, reducing reliance on the grid during shorter winter days and low-light periods.
✅ Compensating for Panel Degradation – Most panels come with a 25-year performance warranty, meaning that by year 25, they’ll still produce at least 80% of their original output. Installing extra capacity now can help ensure that your system meets your energy needs decades down the line.

What Happens to Extra Solar Production?

Just because you can generate more than 100% of your usage doesn’t mean your utility will pay you full price for the extra power. Here’s what to know about overproduction:

✔️ Net Metering Credits – Most utilities allow you to bank credits for excess power produced during summer months and apply them toward winter usage when days are shorter and panels may be covered in snow.
✔️ Limited Payback for Extra Energy – If you exceed 100% usage, some utilities won’t pay you at all for excess power. Others will compensate you at a fraction of what they charge for electricity—which makes sense, as utilities maintain the grid infrastructure that homeowners don’t have to pay for.
✔️ Batteries & Self-Powered Homes – If you install a battery, an oversized solar system ensures you have enough power to charge your battery during the day, allowing you to run your home overnight without relying on the grid.

How to Properly Size Your Solar System

Every home’s energy needs are unique, so system sizing should be based on:

- Current Usage – Reviewing your past 12 months of electricity consumption to determine your baseline needs.
- Future Plans – Considering appliance upgrades, an EV purchase, or switching to electric heating.
- Solar Goals – Whether you’re looking for full offset, partial offset, or complete energy independence.
- Utility Policies – Understanding how your utility handles overproduction ensures you get the best value for your investment.

At Off Grid Solutions, we tailor every system to match your exact energy needs and future plans. We don’t just install solar—we make sure it works for you today and for decades to come.

Let’s Talk Solar—No Pressure, Just Honest Guidance

We hope this page has helped you better understand how solar works, what to look out for, and how to get the best value. Making the right choice now can benefit you for decades, and we want to help you feel confident in that decision.

At Off Grid Solutions, we believe in honest conversations, transparent pricing, and expert craftsmanship—without the sales pressure. Whether you’re exploring solar for the first time, looking to upgrade your system, or just want a second opinion, we’re here to help.

💡 We offer free, no-pressure quotes tailored to your needs.

📩 Let’s discuss the best solar solution for you!