Benefits of Solar

It used to be common knowledge that solar is too expensive for the normal household and only the domain of space scientists and treehuggers. Well, it’s not the 70s anymore. Solar energy has made enormous strides and the cost reductions make it now the most perfect investment.

In the last 20 years, the cost of a solar panel has declined to less than a tenth, due to volume production and new technology. A typical residential system costs less than $6 per Watt and that $6 investment will deliver a total of $40 of electricity during the next 30 years. How is that for an investment return?

Typical residential systems cost between $14,000 and $30,000, dependent on the size of the electricity needed. A battery system adds another $3-6000 and will make sure that you have the lights on during an outage.

To make the decision even easier, a federal tax credit pays for up to 30% of the purchase price and the utility kicks in a few thousand dollars as well. For the details, ask your tax advisor, but the rule of thumb is that the payback is around 5 years. After those years the system still retains its value, increasing the sales price of your house when you move. It has also been shown that solar homes sell significantly faster.

If you are worried about inflation, consider that the price of electricity rises with inflation. That means that a solar system provides an ideal inflation hedge. Your electricity costs only as much as the finance charge and, once it is paid off, it is free.