Dear Homeowners Considering Solar,
I know you see the recession clouds forming, and dispersing, and forming again. So do I. It’s ominous, and the uncertainty is not very fun. Interest rates are rising, inflation is high, and the prospect of asset prices declining is real. Many of us who might have considered selling our home and buying a new one are holding pat for the foreseeable future.
So what does any of this have to do with solar energy?
Well, there is a profound paradox in front of us that is hard to untangle.
On the one hand, nobody wants to outlay tens of thousands of dollars on anything right now.
On the other hand, solar energy is literally the best investment you can make at this moment and the most likely to steady your finances through uncertain times.
Hear me out. This is my argument in 5 easy steps:
- The cost of gasoline in 1993 was $1.11/gallon. Today the average cost is nearly $4/gallon. Knowing that, if you could have purchased 30 years of gasoline in 1993, would you have done it? The same concept applies to solar. If you could lock in today’s utility rates for 30 years, would you do it? The difference between these two examples is that in the first, you can’t actually store 30 years of gasoline in your basement, but you can surely store 30 years of electricity on your rooftop.
- Solar is not a stock-market investment and it does not produce the same exact return for decades. Financial results depend on system cost, financing, equipment performance, shading, weather, electricity usage, utility rates, maintenance, insurance, and contract terms. Production and savings models are estimates, not guarantees.
- Some studies have found associations between owned solar systems and higher sale prices in certain markets, but a specific increase in home value is not guaranteed. Location, system ownership, age, condition, remaining loan or lease obligations, buyer preferences, appraisal practices, and market conditions all matter. Do not treat an estimated value increase as free electricity or as an offset equal to the system’s cost.
- Remember the price of gasoline in 1993? What if you could return to that tomorrow. A study by the Union of Concerned Scientists found that the cost of driving an electric vehicle on solar panels is about $415 per year, compared to $1,260 per year for a gasoline-powered car. That’s right, less than a third of the cost. That means that by installing solar, you could actually fuel your transportation for the same amount you would have spent 30 years ago, relative to what you are paying today for a gas-powered vehicle.
- Have you noticed that I haven’t even mentioned helping the environment yet? Everything is about your bottom line because we believe that solar should be able to justify its cost with tangible benefits for everyone with a roof over their heads. The fact is that if you have unobstructed roof space with the sun shining on it, and it’s not covered with a solar panel, you are throwing money out the window. Will going solar also be a gateway to future energy storage resilience for your home? Absolutely. Will it help wean America off foreign sources of energy? Yes. Will its ubiquity pave the way for sustainable sources of domestic energy that could stave off catastrophic climate change? Yup. But beyond any and all of that, it’s still an investment as good as anything in your portfolio, and that matters too.
Solar may be worth considering when a property-specific proposal fits the homeowner’s energy use, roof, finances, and long-term plans. Compare multiple quotes, use conservative assumptions, verify current incentives, and understand ownership, financing, warranties, insurance, transfer, and service obligations before deciding.