With jobless claims skyrocketing to a record 22 million over the past few weeks, many people with savings are scrambling to find a stable place to safeguard their funds.
The usual workhorse stocks with dependable ROIs in the tech and banking sector have been on a nauseating roller coaster of ups and downs, while the Dow Jones, S&P 500, and NASDAQ have been feeling the whiplash of these tumultuous and unpredictable times.
One unexpected financial investment with guaranteed cash-on-cash returns is DIY home solar, with many a homeowner enjoying paybacks in the double digits.
Consider this: Last year the average American household paid $118.36 a month in electric bills. In 2020, 38 of 50 U.S. states saw an increase in prices of 1-6%, with Vermont residents seeing their energy bills go up the most by 15.2 percent.
Converting a home to solar will bring a homeowner’s monthly electric bill near $0 and, in most cases, remove it entirely. There are plenty of state and federal, low-interest payback programs that allow homeowners to pay off the price of a solar system in less than ten years, ensuring they can lock in a monthly payback that doesn’t inflate with every coming year. While it’s hard to predict future rate fluctuations, installing such technology that puts you in charge of your energy production can lock in a fixed rate and offer financial security.
Because DIY solar projects further reduce installation costs, such grid-tied systems tend to recover the cost of the entire project in 3-6 years. There after, the investment will generate a net-positive monthly income, with utility companies actually paying homeowners through net-metering programs.
As proof just how reliable a financial return home solar is, one homeowner wrote an investment blog about locking in double-digit returns on his solar installation project when the market was on a record-breaking bull run in 2018.
Here’s a look at how the actual numbers of his residential solar investment shook out after a year:
|Solar panel purchase price:||$26,100|
|30% Federal Tax Credit:||($7,830)|
|Net Upfront Cost:||$18,270|
|Actual electricity production (6,129 kW/hr @ $0.3475):||$2,130|
|Cash on cash return:||11.7%|
The 30% Federal government tax credit the homeowner enjoyed above stepped down to 26% this year and will decrease another 4% the following year until it expires in 2022.
Regardless of this decline, investing in a home solar system with the help of Go Green Solar while the Federal tax incentive is still generous, is a secure way to ensure monthly electrical bill savings — especially considering both the U.S. and global economy have yet to feel the full repercussions of COVID-19.
Any way you cut it, in today’s bear market, the annual returns gained by switching to solar far exceed those of a savings or investment account. Give the experts at Go Green Solar a call to learn just how much your investment can make!