[mountn man]

$65k for the system.

Saving $300-$400 a month. Lets call it $350.

$350 x 12= $4200 a year

$65,000 ÷ $4200 a year= 16 years

Not to mention interest. Lost, if he paid cash. Paid, if he financed it.

$65,000 x 6%= $3,900 = Not much in savings.

Now of course, if we are talking peace of mind of relying on the electric company, that worth can only be answered by the homeowner.

I wonder how much lawyer fees are going to cost in the end?

[muawiyah]

You have to apply the discount factors times the cashflow for each year in the analysis ~ and they'll be different.

Plus, there's not just interest here, there's the amount of money he'd have to earn to get back the difference in cash.

With taxes climbing all the time he might well make back his investment in 5 years (considering interest rates are near 0).

[bert]

You omitted the prime factor in the new equation. When there is no coal or nuclear power, the comparative advantage will shift.

Meantime ,the self esteem value factor will be adequate to justify the cost differential. To calculate the value of self esteem and mental superiority is not possible. Both have large irrational factors

[BookaT]

What if electricity rates double in the next few years? Then it maybe that his savings per month end up at let’s call it $700 a month. Probably have it paid off with savings in 10 years.

I don’t know the longevity of solar systems(the ones on your home not in the galaxy), I don’t know what savings or costs this guy will see in the future.

I do know it has to feel pretty damn good to not need the electric company to power your needs. Now if you could just get rid of the cable and the rest of the municipalities’ costs(water, trash, etc.)

I would prefer to be self sufficient even if it meant I spent a little MORE for electricity than having to rely on the electric company.

[No Socialist]

We can’t forget that solar panels aren’t guaranteed for life. Most manufacturers say 20 years. Since most are made in China, I would doubt they get 20 years out of them. In other words, this DB will save nothing. His neighbor probably planted the trees to hide the ugly solar panel roof.

[az_gila]

Nah... I bet with Federal and FL tax credits, and power company rebates, he got back way over 50% by the time his next tax forms were filled out...:^)

Old data, but shows what was around for FL -

http://solarpowerrocks.com/florida/

[Mamzelle]

Did he get a tax credit? That would reduce that 65K to about 35K if he got 55% off of fed tax.

Suppose inflation hits and energy costs double. Suppose energy gets hard to get at any price.

Now, re-do the figures.

Planting those trees, of that type, seems really spiteful.