If you’re looking for the ultimate ROI on your solar system, you should consider purchasing solar with cash. You can look at buying a solar system as an investment. Instead of leaving it in a bank and getting a low return, or investing in the stock market with high risk, you can invest and solar for zero risk and a guaranteed return on your investment.
Most installers will give you a cash discount, it will speed the process up by skipping the financing paperwork, and keep you debt free. You’ll immediately start seeing returns on your investment at a rate of 12-25% because no monthly energy payments.
In this case study, we have an old utility bill of $250, which resulted in a gross system cost $25,000. After deducting the 30% Federal Tax Credit of $7,500, the Net system cost was $17,500. Since you’re buying the system, that is going to be your upfront investment. Now that you’ve paid for your system, you will have no monthly solar payment and no utility bill. That’s right, you’ll have no energy payments whatsoever. Your payback period will be about 5.5 years and your ROI is around 19%. Your lifetime savings on this will be a whopping $85,000. As a bonus, you’re adding $30,000 in value to your home.
If you have the funds to purchase your system with cash, purchasing solar with cash is clearly the best bang for your buck.