Solar panels increase house prices.

[lkruper]

Are there better investiments than solar?

I have heard that most businesses consider a three year payback on an investment to be a good factor. Maybe that was when interest rates were higher? I am not an investment person, so I do not know. However it does seem to me that if it takes 10-15 years to pay back an investment on something where in that time the hardware is outdated, is that not a risk?

Just as a napkin calculation, if solar was break even at 15 years and it lasts 25 years, are there other investments that can give that kind of return without putting holes in ones roof?

[SunEagle]

I have heard that most businesses consider a three year payback on an investment to be a good factor. Maybe that was when interest rates were higher? I am not an investment person, so I do not know. However it does seem to me that if it takes 10-15 years to pay back an investment on something where in that time the hardware is outdated, is that not a risk?

Just as a napkin calculation, if solar was break even at 15 years and it lasts 25 years, are there other investments that can give that kind of return without putting holes in ones roof?

Short answer to your question about being a risk. YES.

The long payback and possible little to any real estate value increase is a big barrier to most people concerning solar. With average electric rates of $0.12/kWh and low yearly usage it makes paybacks much longer then someone in CA or HI especially with usage over 1000kWh/mth.

Though surprising people in the Northern states that have low electric rates, low insolation and snow still decide to go solar regardless of how long it pays for itself.

It really comes down to what is more important to people for them to make any decision. Sometimes finances is the top motivator and other times it is more a personal feeling about doing what they think is right no matter the cost.

[lkruper]

Short answer to your question about being a risk. YES.

The long payback and possible little to any real estate value increase is a big barrier to most people concerning solar. With average electric rates of $0.12/kWh and low yearly usage it makes paybacks much longer then someone in CA or HI especially with usage over 1000kWh/mth.

Though surprising people in the Northern states that have low electric rates, low insolation and snow still decide to go solar regardless of how long it pays for itself.

It really comes down to what is more important to people for them to make any decision. Sometimes finances is the top motivator and other times it is more a personal feeling about doing what they think is right no matter the cost.

Wouldn't a solar system need to be replaced in 25 years (or large portions of the electronics sooner?) Any increase in real estate value would only be seen if one sells before the payback period. After 15 years it would seem that the technology would be much different and more efficient and perhaps much less expensive that what was initially installed. But I have no experience, so what do I know?

[J.P.M.]

Wouldn't a solar system need to be replaced in 25 years (or large portions of the electronics sooner?) Any increase in real estate value would only be seen if one sells before the payback period. After 15 years it would seem that the technology would be much different and more efficient and perhaps much less expensive that what was initially installed. But I have no experience, so what do I know?

Age of a system, tech. advances, less wow factor with age and a bunch of other stuff all play a role in resale/salvage value calcs. At the end of the day, it's all about perceived value of a thing and the manipulation of that perception.

[requir]

It's like with anything - it's an investment, which you have to count up costs and possible profits. With special plan to design it and selling the rest of produced energy it should profitable at last.

[lkruper]

It's like with anything - it's an investment, which you have to count up costs and possible profits. With special plan to design it and selling the rest of produced energy it should profitable at last.

If you can make more profit from buying government bonds with no risk and no need to put holes in your roof, then what is the better investment? Higher risk investing is generally only done because of a higher profit potential?

[lkruper]

It's like with anything - it's an investment, which you have to count up costs and possible profits. With special plan to design it and selling the rest of produced energy it should profitable at last.

If you can make more profit from buying government bonds with no risk and no need to put holes in your roof, then what is the better investment? Higher risk investing is generally only done because of a higher profit potential.