07/01/2021
So, I just had this conversation with my friend Aaron...
Aaron:
Friend of mine and I were debating whether solar panels made sense in this area on a purely budget factor. He argues that if an installation costs 20K, and your bill is normally around 200 a month, it would take 9 years to pay off. That same money in the market would pay approx 20K in interest.
Me:
So, ask him what is the difference between making $20k and saving $20k? At the end of 9 years, the solar system would still be worth a lot of money. Sure, perhaps not the full $20k investment, but NREL did a study and found that for every $1000 in energy savings that you provide to your home, it increases the resale value by $20k. So technically, solar systems can be net positive from day one! Plus, the cost of electricity is guaranteed to increase over time. So, the more energy that you produce, the more money you save! Also, he didn't account for the 26% federal tax credit which lowers your out of pocket cost, plus the tremendous environmental benefits of using clean renewable energy!