Grid-tied solar

[fordmantpw]

True but if you are more than 12 years old you might remember investments paying almost 9% tax free. Well managed portfolios earn much more. I won't argue that future of business in the USA is bright, but many are going to profit in a collapse. HS

I also remember a Snickers costing $0.35 too. And gas at $0.68/gallon. Ahhh, the good ole days. Oh, and don't forget, mortgage interest was 9, 10, 13% too as opposed to the 2.5-3.5% that we are seeing now. My first home loan 15 years ago was 8.5% (for a 15 year). Our new home is coming in at 3.75% (for a 30 year that we plan to pay off in 15).

Speaking of taxes, to double your money, you have to take taxes into account, which means you need to earn more like 12-13% on your money (unless it is in a ROTH, which you can't just plunk 20k in all at once).

Many will profit in a collapse, but many more will lose, big time. I would call solar a SAFE bet. The BEST bet? No, but a safe one.

 

[Redneck in training]

But if you could double your 20k in 8 years and again in the next 8, you'd have to have spend almost 100k in electrical expenses in that 20 years, is it still a good investment? HS

If you save $235/month on energy and invest it Index fund earning 8%/year you will have $100205.45 after 16 years. If inflation pics up investment in PV looks even better.

 

[houstonscott]

I also remember a Snickers costing $0.35 too. And gas at $0.68/gallon. Ahhh, the good ole days. Oh, and don't forget, mortgage interest was 9, 10, 13% too as opposed to the 2.5-3.5% that we are seeing now. My first home loan 15 years ago was 8.5% (for a 15 year). Our new home is coming in at 3.75% (for a 30 year that we plan to pay off in 15). Speaking of taxes, to double your money, you have to take taxes into account, which means you need to earn more like 12-13% on your money (unless it is in a ROTH, which you can't just plunk 20k in all at once). Many will profit in a collapse, but many more will lose, big time. I would call solar a SAFE bet. The BEST bet? No, but a safe one.

I look at solar $$ on my roof more like insurance then an investment, but you are betting against a bright future. HS

 

[houstonscott]

If you save $235/month on energy and invest it Index fund earning 8%/year you will have $100205.45 after 16 years.

Something to consider for sure. HS

 

[fordmantpw]

I look at solar $$ on my roof more like insurance then an investment, but you are betting against a bright future. HS

But it isn't insurance. Insurance is betting against something that MAY happen. We all know that we will have to pay for electricity. We all know that the rates won't stay the same that they are now for the next 20 years.

I see your point about investing the money, but to have a well-rounded portfolio, you need some safe investments to go with the risky ones. Now, if a person only has $20k and they have a choice to invest or do solar, I would recommend investing it as opposed to putting solar panels on their roof. However, most people that install solar aren't spending their last dollar to put the panels on the roof. They are broadening their investment into a safe area as well.

Heck, I'm sure some people are doing it just to feel better about what they are doing for the environment and don't care about the investment at all. Besides, living life isn't about how much money you die with. He who dies with the most does not win.

And don't forget, those that do go solar are effectively helping to keep rates affordable for folks like you who have no desire to use solar.

 

[Redneck in training]

Another thing to consider is the type of hardware you want to install. If you want also a back up when the grid goes down select an inverter that can be islanded, can be paired with battery or at least provides emergency power. Here is an example SUNNY BOY 3000TL-US / 3800TL-US / 4000TL-US / 5000TL-US / 6000TL-US / 7000TL-US / 7700TL-US
It will keep your fridge, gas furnace and TV powered as long as the sun is shining.

 

[houstonscott]

So you post an article from 2012!!! Please don't ruin this thread. Let people peacefully discus some of the possibilities. Many of us know you are anti anything renewable. Loren

Electric car benefits? Just myths

This ones for Loren, just to bring you up to date. If you think electric cars are the way to go, don't read this. HS

 

[ultrarunner]

Paying 30 cents a kWh has an impact and changes things compared to someone paying 10 cents... just saying.

 

[houstonscott]

But it isn't insurance. Insurance is betting against something that MAY happen. We all know that we will have to pay for electricity. We all know that the rates won't stay the same that they are now for the next 20 years. I see your point about investing the money, but to have a well-rounded portfolio, you need some safe investments to go with the risky ones. Now, if a person only has $20k and they have a choice to invest or do solar, I would recommend investing it as opposed to putting solar panels on their roof. However, most people that install solar aren't spending their last dollar to put the panels on the roof. They are broadening their investment into a safe area as well. Heck, I'm sure some people are doing it just to feel better about what they are doing for the environment and don't care about the investment at all. Besides, living life isn't about how much money you die with. He who dies with the most does not win. And don't forget, those that do go solar are effectively helping to keep rates affordable for folks like you who have no desire to use solar.

I might go solar, I'm between a roof mount or an active tracker. The active tracker is expensive and would never pay a profit. If you generate enough to sell back its bought back at such low rates you are just supplying the electric company with cheap power at your expense. The most you could really hope for is about 6 hours of use. Impacting your bill by 25-40% May not really be that enticing. Most certainly $$ in a PV system sized just right is clearly better $$ than a CD at 1.8%. HS

 

[fordmantpw]

I might go solar, I'm between a roof mount or an active tracker. The active tracker is expensive and would never pay a profit. If you generate enough to sell back its bought back at such low rates you are just supplying the electric company with cheap power at your expense. HS

Selling back never seems to be a worthwhile proposition. For me, I'm on a co-op, and it doesn't buy anything back, no matter how much you are over, so there is no benefit to over-producing. Plus, there is a minimum just for having a meter, so for me, the best place to be is about 80-90% replacement of electricity. Active trackers don't seem to be worth the added expense.

When we built our new home, I had my shed built with solar in mind. 5/12 pitch roof (optimal is 6/12, but that's a bit steep for a metal roof, plus the added cost wouldn't be realized in solar payoffs), roof facing due south, etc. Small things now to help optimize solar in the future.