That's the energy costs I'm avoiding each month in gasoline + natural gas + most of my power not having to be bought (though excluding some overlap, as I consume more power by not needing natural gas anymore and charging the EV). But subtracted from that savings is the loan payment I make on the HELOC I took out to add solar, do other energy improvements to the home, make payments on the EV with 4-year car payments (started that 3 years ago) with it's related costs, plus minutia related costs (i.e. higher insurance premium for having a more expensive car) ... minus the energy costs I'm avoiding (gasoline + natural gas + higher power bills). All of which I calculate every month when I get a power bill. Even with that working against it, my budget has saved more than the energy project cost me. (A total of $8,700 since spring of 2021.)
Assuming a 3% inflation rate on energy costs, minus a 1% degradation rate on my solar equipment --- I'll hit the break-even point in year 2031. That's when my total cash flow savings will equal what's left in the HELOC balance. My first solar panels and inverter and batteries will be 10 years old. (Played with a small system for a year to test it out before adding to it in year 2022. Thus, most of my solar equipment + the EV will be 9 years old.) So even if it all quit working in 2031 or later it will have paid for itself. (More than paid for itself, actually, since I add pessimism by not including the investment growth from the cash flow savings, which in the end means that that amount is staying in our Roth IRAs growing tax free.)
Or put another way: the energy and transportation portion of my budget feels like it's still year 2019 (last year of Trump before covid distorted energy prices). Being more energy self-reliant helped me avoid the Biden inflation on energy. What I was paying each month on average in 2019 in power bill + natural gas bill + gasoline + $400 to car savings account for repairs/replacing a car, is what I've been paying since I went solar in tiny power bill + HELOC payment. I pull from the HELOC to help make the car payment (minus the $400 car savings amount I was used to "paying" anyway). And each year for 3 years when I got the EV tax credit and/or solar tax credit I used that to pay the HELOC balance back down. (I hated the tax credits because I hate govt intervening in the market, and all they did was artificially inflate my upfront prices I paid anyway like everything else the govt "helps" us with. But I don't make the rules, I just use them to my advantage.) When the EV is paid off next year, my regular budget amount for energy and transportation will be faster at paying down the HELOC (paying extra on principle).
How much did the entire system COST you installed?
Meaning IF it cost $25K-35K you could have invested that money in stocks, Money markets, etc. Making 7%, your money doubles every seven years.
This May I bought 15 used panels. 370w. Put them in place of the 13 year old panels. Net an additional 16 kw’s a day.
Cost $1150. Giving me about $2 a day, $60 ish a month.
Do you pay income taxes on the government subsidies?
I was shocked when I had to do so.
Do you pay income taxes on the government subsidies?
I was shocked when I had to do so.