With the federal election and sustainability being a hot topic, states competing with each other to become the best sustainability state, and media coverage of proposed increases in the price of electricity-it feels like everybody is talking about solar power. But is it all hype, or is the proposed investment in solar power being a solid investment by normal people like us? We have been wondering whether investing in solar power is a smart idea now and have come up with a compelling argument for urgent action and beginning the investment right away. Here are some of our explanations. Checkout the Facts about solar.
Solar is a high yield investment, low risk investment
Solar risks are low-most solar photovoltaic systems and solar hot water heaters come with up to 25 year long-term guarantees. Solar is low maintenance (or no) because it has no moving parts-some solar PV systems have already been operating for decades. Upon the sun rising, Sun will start to give you a gain on your savings every day, much like an annuity payout.
The cost of energy is almost guaranteed to go up. The cost of solar photovoltaic and hot water systems will decline marginally in price with higher penetration and reduced manufacturing costs, although this possibility is small and will be more than entirely balanced by increasing energy prices. The sooner you invest, the sooner you will be able to reap the return.
Your investment gains would arrive after the construction expenses have been covered-often during the first 2 years after deployment (this would focus on the sun exposure, the quality of the device you select, and the electricity prices you ‘d be using).
What about the technology significantly improving risk?
Some people we ‘re talking about say they ‘d rather wait to invest in solar-waiting for the new model that will undoubtedly be more efficient-just as we ‘re waiting for the new iPhone. In the last few years , advances in solar technologies have been tremendous, and the impression is real. Nobody can predict how much technology can improve until it has, but many solar professionals are telling us they think the technology has a long way to go before it jumps again. We are advised that solar is where cell phones are-any model will have a video, internet access, music, and typically a touchscreen, and the next major change is nowhere in reach.
Increases your house value
Early reports show that houses with lower annual utility bills sell for a higher price-and sometimes the difference is more than what the original investment was.
In Victoria (and we’re sure to soon be legislating federally) houses for sale will have associated with them a compulsory star energy rating. With the increased awareness of the energy quality of a house, you can be confident that more and more buyers will opt to purchase affordable houses they won’t need to retrofit in the future.
Your home valuation rises by at least the ‘improvement’ amount-and note that part of the upgrade premium is not charged explicitly by you, but in the form of rebates, from the state or federal government.
Protection against potential spike in electricity prices
When the mortgage rate goes up, we all know what happens. We have less disposable income, sometimes compelling us to cut corners into items needed. Higher prices in utility bills are a high risk (64 per cent price increase forecast in NSW over the next 3 years). Solar technology defends you from such price spikes by making sure you have the capacity to generate your own electricity that doesn’t fluctuate.
Although this possibility can not be completely avoided, you will certainly will the potential impact that price hikes would have on your lifestyle. This ensures that whenever you have an inflation-based wage boost (which is always measured with commodity costs in mind) you have much of the gain to spend what you like-not on the needs of living.
Rebates minimize expenditure costs and raise returns
Would renewable energy rebates be there for ever? They might very well be, but for a very long time we’ve all known not to rely on a rebate system! Today’s rebates are great, so you’ll get a federal and state voucher bundle as well as RECs.