Putting solar cells on the roof of a house is not only good for the environment – it is also a profitable investment. If you have a normal-sized villa, you can reduce your electricity bill by $600 per year.
Your solar cells generally give you a better interest rate than at the bank.
So, is investing in solar panels worth it?
Yes, you can definitely make money on your solar cells. With the investment itself, you pay, but then you have virtually no costs and in addition there is very little maintenance. And for every kilowatt you produce, you do not have to buy one. This means that you gradually pay back on the investment you have made. In the long run, you can count on the entire facility.
But in general you can say that if you install solar cells for about $10,000 villa, you can reduce your electricity bill by $600 kronor per year. This means that the return is between 5 and 7 percent – which is better than the bank interest rate.
Why are solar cells a good investment?
How much risk are you willing to take and what return do you expect? There are two essential questions that are most often used to decide which type of placement suits you best.
But there is also another relevant question to ask; why are you investing your money?
There are many reasons why you want to invest your money. As security to cope with worse times or unpredictable expenses.
It can also be to be able to realize their future dream. Regardless of the reason, the purpose of investments is to want to improve your future finances. And this is where solar cells come into the picture.
1. Solar cells reduce your monthly cost
By investing in solar cells, you can significantly improve your finances. As soon as you start producing your own solar, you can reduce your electricity costs significantly.
By not having to pay monthly electricity bills, there is a lot of money to be saved. The solar cells usually have a warranty of about 25 years but can last much longer than that.
A photovoltaic system gives you a return of about 10 percent.
2. Solar cells increase the value of the property
Making a larger one-time investment to reduce future costs is a great way to improve your finances. But there are additional benefits to using solar cells from an investment perspective.
Solar cells increase the value of your property.
So far, too few items with solar cells have been sold to give a clear figure on how much the value increases. But to give you an approximate price picture, I usually use a theoretical calculation example.
By producing your own solar, you reduce the property’s operating cost and a low operating cost generally affects the value of a property.
As a calculation example, you could therefore convert the value into how much more a buyer can pay and borrow for a property with the same operating cost.
If you have an interest rate of 2%, it costs $700 with interest deductions per year to borrow $50,000.
If your photovoltaic system reduces the operating cost by $700 per year, there is a theoretical possibility that you can sell the property for $50,000 more compared to if you did not have a photovoltaic system.
A photovoltaic system can also improve the house’s energy rating, so that you can get a green mortgage.
Should I invest in solar cells or just save money at the bank?
With solar cells, you can thus reduce your monthly cost at the same time as the property value increases. But whether you should invest your money in solar cells or in a bank account depends on your situation.
When do you want to use the money? Solar cells have a relatively long investment horizon. If you save money to be able to cover unpredictable expenses, such as when, for example, the washing machine breaks down, it is better to have money in a bank account than in solar cells.
If you have the opportunity, it is not one or the other that is best, but a combination.
That you use part of your savings to invest in solar cells, part in the bank account and part in the stock market.
Are solar cells the right investment for you?
Here are some pros and cons for you who are considering whether to invest in solar cells or save money at the bank and in stocks.
Benefits of investing in solar cells
- Good if you have a lump sum that you want to invest
- Provides a stable return for many years
- Better return than a bank account
- Less risk than stocks
- Minimal maintenance costs
- You will be less affected by price fluctuations in the electricity market
- A good environmental investment
- Can increase the value of the house
- Can improve the house’s energy rating
Disadvantages of investing in solar cells
- Requires a large investment initially
- You can take out a loan for the installation, but then the return will be lower
- You can not “get out” money if, for example, you need to buy a new washing machine, but you save and make money on an ongoing basis
- Can give worse returns than shares (can also give better)
Factors affecting the price of a photovoltaic system
There are several different factors that determine how many years it takes to pay for a photovoltaic system. The big cost is of course the solar panels themselves.
The prices of solar cells have fallen a lot in the last ten years and this has contributed to it being more profitable today to install solar cells than it has been.
As a private person, you can also receive an investment grant that covers 20% of the total cost.
The solar cell grant is distributed by the county administrative board where you live and this is also where you apply for the grant. The processing time can be quite long, so apply as soon as you have decided to put solar cells on the roof. You can also get a ROT deduction on the installation of a photovoltaic system. A ROT deduction can only be given on the labor cost, which is approximately 9% of the total investment cost.
It is not possible to combine the ROT deduction with the investment support.
In addition to the actual cost of the solar panels, it also counts on how much you save by producing your own electricity, how much income you get when you sell the surplus electricity and what maintenance costs the photovoltaic system requires.
The maintenance cost of a photovoltaic system is often very small. It has no moving parts that can break and is powered by the sun so no other fuel is necessary.
The part that needs to be replaced after about 15 years is the inverter, otherwise a photovoltaic system is very durable and durable and the expected service life is between 25 and 30 years.
The larger the facility, the shorter the repayment period.
Most people who install a photovoltaic system do so with the help of an extended mortgage and then it can actually mean a saving already during the first year when the saving of the system is higher than the cost of the loan.
Tesla Solar Roof
Also, if you are interested, check out another brand of solar panels. I found this on Youtube and thought it looked interesting: