09.25.07
Can you make money from solar or renewable energy?
I noticed in yahoo answers, some forums and other blogs that there is a lot of confusion on if solar power is profitable or not. This seems to be a question that is answered over and over. In some places it is not profitable and will only break even. Other places you will land a good return on your investment.
A simple way to look at it is:
If you are using a public utility for your power needs you are renting your power. Have you ever rented a car and later noticed after 4 years having to give the car back or pay for it. You have nothing if you are renting.
You never see people sell their homes because they want to rent a place to live. It is more in the line of renters want to buy a home. So why would you want to rent electricity when you could own it?
Here is a thought, You checked on buying and installing a solar electric system. You was told that it would cost you around $36,000. Your first thought is WOW, that is not worth it. I currently only pay $100 per month electric bill so why would I want to pay that much.
Do the math. A grid tie solar electric system last about 30 years plus with out you doing anything more then sweeping some snow or hitting it with the water hose to get the dust off the panels.
Now back to the math, One hundred dollars a month over 30 years is guess what, Yup $36,000 and then if your add in the lower end of inflation of 3.5% increase per year you are hitting closer to $100,000 in rental utility electric. You could buy almost three solar electric systems for that amount. Or a solar electric system AND a new Corvette to set in your driveway.
Think about the fact that if you after 5 years you wanted to sell your home and move on. You can only recover the cost of your home in the sale if you were renting electricity from the utility. But you could add 20% to the cost of the installed solar power plant and make a profit. Then if your electric bill was $100 per month for the last 5 years, that is $6,000 of free electric.
Sounds like there is a real profit in solar to me.
Check out this page http://www.oynot.com/how-solar.html and find the link “Price and cost Planner” it is an excel spread sheet that will show you your savings over time.Don K.
