People are always looking for ways to invest their money. They often turn to more traditional investments like an S&P500. However, research suggests that investing in solar energy can get you a greater bang for your buck. Here are a few reasons why:
You get a greater return on investment (ROI)
Many investments are risky, and some have low ROIs. Ideally, you want something that is low risk but with a high ROI. Solar achieves just that.
Let’s use an example. Before you install your panels, your electric bill is $1,000 per year. Soon, you install an entire solar panel system that costs you $4,000 total. You have a 25-year warranty, so you want to see what you will be saving for the next 25 years’ worth of electric bills.
First, we calculate the net benefit by subtracting $4,000 from $25,000 to get $21,000. To calculate ROI, we do the following:
$21,000 ÷ $4,000 = 5.25
5/25 x 100% = 525%
So, your ROI for your solar panels is 525%! That’s a far greater ROI than most traditional investments can get you.
Solar energy is tax-free
Traditional investments are usually taxed. Even your IRA or 401k is taxed. However, solar energy gains come from monthly savings, not earning. As a result, they’re not taxable.
It increases your home value
Another way that solar energy can earn you extra bucks is through your home’s value. If you decide to sell your home one day, your solar panel system could increase your home’s value by 4.1% on average!
If you’re looking to invest in solar energy, look no further than Empire Clean Energy Supply. Contact us today to learn more!