Hello fellow solar lovers. Osea Nelson here, back after an unintentionally long break. Today I want to share some thoughts with you I have been compiling over the last few months concerning the investment side of solar energy.

As you know there are many, many other reasons to look into adding solar to you home or business. For now let’s agree on that long list and put it aside. To make any new technology viable for the masses the market must accept it on its financial basis and nothing more. It is the nature of the very fundamental tenant of our free market system that the market will lift up sound new ideas, and will punish products and ideas that do not have a future out the door. Some today certainly argue that we are all suffering now, today, because the market finally did correct the wrongs that were created in consolidated debt obligations, sub prime loans, and the like. We are all in this pickle together, and times certainly are hard right now, but I also know that people do have money still saved, and are looking for sound areas to invest. It is hard to believe that any investment today could be considered sound. Our brokers are telling us to get back into the market, and yet reports seem to be circulating that we may have more drops to come before the actual floor is hit. They tell us to invest in government debt for more secure gains, just as other countries are walking away from our T-bills as they don’t see the returns they are looking for.

It seems there really is two questions to ask. First, “what should I do with my money today?” and second “how do I actually define an investment? “

Now if you listen to my grandmother she would tell you to stick every penny you have left under your pillow and walk away. I love my grandmother, but don’t take her advice. There is no such thing as a guarantee in this life but solar comes darn close.

Solar provides its owner with a GUARANTEED positive return on money invested. The only way that solar will not provide a solid positive return is if energy prices suddenly and permanently decline. I think that most of us can agree, that is not going to happen. With the recent announcement of possible cap and trade legislation, increased concerns over supply, coupled with turmoil in the fossil fuel rich nations around the globe, the era of “cheap” energy is rapidly coming to an end. This is where solar really starts to shine, pardon the pun. Looking at an investment snapshot today, solar makes a lot of sense. It provides a modest positive return on your money from day one. It also allows you to capture money that would have gone to federal taxes and disappeared forever to be reinvested directly into your home. But the real value that solar has to offer each of us, comes in the years ahead. Each time energy prices rise (California’s energy is 56% more expensive than Colorado’s) your investment just made money, your payback window got cut substantially, and your ROI just went up. This will happen year after year, decade after decade, as your solar system ages. It will actually make you more money each year you own it. Returns possible with a modest 8% a year energy increase hover around 10%+ annually and over 300% return on the investment. That is at 8% a year. One local utility just announced a 23% rate increase for next year. Solar insulates you from these dramatic shocks now and for decades to come.

So let’s revisit our questions. To answer our first question of what to do with your money these days, I say there is no surer bet than solar power for your home or business. As to the second question, I believe the true definition of an investment is something that generates a realized income stream over time without my personal involvement everyday. Solar is that investment. You are generating a guaranteed income stream that is better than anything we could ask for out there today with the added bonus that as rates fluctuate over the coming years you and your family will make more and more each year on your investment. Now that redefines a sound investment!

Go forth and invest wisely, invest in solar!!
Cheers,

Osea