Setting aside a couple things that may be opinions: (1) switching the renewables is good for the planet and (2) prices for electricity, particularly that generated from non-renewable sources, is going to increase at a faster rate than inflation;
And acknowledging that the answer depends significantly on local climate considerations;
If you can afford the up front investment, is installing solar panels a sound financial decision for MOST people in MOST locations?
I wonder a little about the evolving technology; presumably it's NOT financially sound to upgrade the panels regularly. They should last for a long time with minor maintenance requirements if it's going to be a good investment.
I live in a community highly dependent on natural gas for electricity and looking at a looming gas crises so it's something I'm thinking about.
Are solar panels a good investment?
byu/4540mya inpersonalfinance
Posted by 4540mya
4 Comments
It depends a lot on local public policy.
I have lived in two places where people could not only opt out of the local electric grid but could also sell electricity back into the grid if their solar or wind created surplus.
In both places, the policy had to be changed because the regional grid math does not work. Everyone needs to be part of the grid and paying for the overhead, or grid maintenance can’t be kept up.
* Check your bills to find out what you pay as your baseline, regardless of consumption. That cost will likely continue to rise.
* Research realistic solar panel cleaning, maintenance, repair, and replacement costs, and factor those in.
* Find out whether your region is still paying people for power contributions *to* the grid. If you are producing extra electricity during peak hours, it might offset your costs.
It’s a big capital investment. If things that have never happened happen you are set up. If things go one like they have for 80 years it’s not a good use of your money. Regulated electric costs probably won’t rise as fast as the stock market so it’s not a great financial move.
Good investment if your electricity bill is high and you stay long-term
They are not an investment. They are technology that comes outdated within a few years and goes down in value, the definition of a liability.
Now, the usefulness where you eventually break even on buying them depends on the cost and how much electricity costs in your state. Never lease them….if you want them, buy them and make sure you have a return in < 5 years. You can find plenty of horror stories about leasing panels and trying to sell a house, or the solar company goes out of business, etc.