The Sun Will Come Out Tomorrow
A frequent question that arises from prospective solar buyers is whether or not they should wait two, three, or five more years before investing into a Solar PV system for their home or business. Concerns about prices lowering is often the objection.
There are a couple of considerations you should make when analyzing your unique sitation:
Example #1: If you own a home and your utility bill is about $110 a month; you’re not into saving the planet, and you don’t want to finance money that could be used elsewhere in a better investment, (where it can earn a higher rate of return) then I say do not invest in solar PV. If, however, you’re motivated to be green as a matter of principle and personal values, and you locate a favorable lease or power purchase agreement with excellent price, terms and conditions, then by all means, go for it! The litmus test is to stack your average monthly utility payment against the payback and return on investment of a solar PV system. Generally, I tell anyone who has an average $110 utility bill or less, to pass on solar PV until prices drop on par with the price of paying for grid delivered electricity. This is known as “Grid Parity”. Currently, small utility bills win out over the cost of investing in solar PV.
Example #2: But what if you’re a home or business owner and your utility bills are slamming you every month? What is the true cost of waiting for solar technology to improve and prices to come down? Remember; with each year that goes by, you’ve passed on emancipating yourself from your utility company for the next 25 years. Again, the return on investment, payback, cash flow, and the internal rate of return are something that Sun Source, along with your attorney, and tax accountant can help you in determining the best time to purchase. Waiting means you will not enjoy the immediate benefits of the solar electricity and the savings on your electric bill while you are sitting on the sidelines. How much will you spend on your electric bill month-after-month and year-after-year while waiting for a better solar electricity system?
If you are considering a solar system for your home or business, I can help. I have been in the energy consulting business for four years and I can help make sense out of the process by preparing three estimates for you and make recommendations on the best for your needs. This can save hundreds to thousands on your system. Let me know how I can serve.
