When we talk about solar power term return on investment always is mentioned. Return on investment means that can earn your invested money back within a calculated time frame. How long it takes to earn back your money depends on several factors. These factors are efficiency of the solar equipment, the amount of sunshine, your location and your budget. Let there be no misunderstanding that with solar power you can certainly earn back your invested money. What I would like to mention here is that there is also another way to look at why you should invest.
First let’s make it clear that you are investing in solar power. It is not just an investment, it is a wise investment. It is a wise investment for several reasons. The first reason is that is can earn your money back. That has been mentioned before. The second reason is that you can save money on your utility bill. These savings can really ad up and some people even earn money. The savings depend on where you live and therefore the amount of sunshine you get and the installation you use. If you use a pv-system and you get a lot of sunshine the solar electricity you produce is brought in the overall electrical system. So if you produce more than you use you can make money (earning money also depends on the rules of the utility company). The next reason is that you are making this world a better place by reducing the production of pollution. Although the reduction from your system may by be small you are making a contribution and everybody needs to applaud for that.
Let’s get back to the first reason that is the return on investment. We will talk about solar power from another point of view. When you decide to use solar power it can be a big investment. If you would buy a total system you are looking at $15,000-$25,000 and that is a lot of money. But when you look at all the products you buy to use for your home or invest in, how many of them save you money or even make you money? When you buy a car you need that car for transportation. The decision for choosing your car depends on your budget and emotions, what you like or dislike. When you’re driving your car have you ever thought about how much money you can save with this purchase? Not much I can tell you that. Buying a car is not a good investment, when you first drive your new bought car you are already loosing money. The car loses its value every day not to mention the additional cost like petrol, maintenance and car insurance. From that point of view a car is a bad investment because you will loose money instantly and constantly. From another point of view the car gives you freedom and perhaps status, but that comes with a price tag. Let take a look at a television set, you probably have more than one in your home. The television gives you entertainment, news and valuable information that you need. This device uses a lot of electricity and even in standby mode it uses a lot. The industry creates new features on television set each year. If you buy one today tomorrow you already have an ‘old’ set and you’ll never get the same price for an older model. So it can be said that this device will also not give you a return on investment. This list can go on and on.
The only wise investment in this context is your home. If you buy a home today your investment will increase over the years. Of course there are reasons that can be negative for your home value, but in general you will gain money. When you invest in a solar power this can also be a valuable feature for your home. When you sell the house the unique selling point can be the use of solar power. For potential buyers the money saving option with solar power can be big advantage. They will not have to invest in a solar power system themselves and all the hard research work is already done for them. If you own your home and will not sell the savings on utility are yours now and forever.
What I am saying in this article is that investing in solar power should not only be for the return on investment but also for other reasons as well as mentioned above. One topic that has not been mentioned here is that depending on where you live you can get tax credits and cash rebates and other incentives when you decide to invest in solar power. That is an additional reason to invest in solar power. The rules for rebates and incentives changes really fast and sometimes you have to move fast if you want apply. If you want to invest in a solar system don’t forget the rebates and incentives. It will make your return on investment even better and the savings will put a smile on your face. Even if you don’t get the rebates, tax credits or other incentives going solar is a wise decision.