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MJ DeMarco
I followed the science; all I found was money.
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So I'm considering getting solar panels on my home, the Tesla Powerwall.
Doing so will cut my electric bill by about 30%, which is about $300 in savings, and it will also give me some emergency back-up power in combination with a gas generator already tied into my home. It is in my understanding that if the power grid goes down, this system will give us about 14 hours of power daily. We also have a backup gas generator, but it depends "on the grid" gas service.
The total cost of the system is about $55K, but with tax credits it will be a net cost of $38.3K.
Naturally for me to make this decision, I like to put things to numbers.
So here are the factors that I find relevant to the decision...
Your thoughts? Am I missing any financial considerations? Another thing I remind myself is this: In 5 years, there might not be tax credits and with inflation, this system won't be $38.3K net, but $100K.
I like the idea of having backup power, but I fear how it might look on the house. The $38K also is not really a consideration, it's just sitting in a bank somewhere earning .000001% interest and losing 10% annually in inflation.
@biophase , thoughts? This numerical analysis is always up your alley.
Doing so will cut my electric bill by about 30%, which is about $300 in savings, and it will also give me some emergency back-up power in combination with a gas generator already tied into my home. It is in my understanding that if the power grid goes down, this system will give us about 14 hours of power daily. We also have a backup gas generator, but it depends "on the grid" gas service.
The total cost of the system is about $55K, but with tax credits it will be a net cost of $38.3K.
Naturally for me to make this decision, I like to put things to numbers.
So here are the factors that I find relevant to the decision...
- Return on Investment ($300/mo return on $38.3K = 9.3% yield, with inflation, yield will increase with time)
- Breakeven, Nominal [not using discounted cash flow models] (how long to recoup my money?) = Breakeven, 7.9 years (average savings $400 monthly) - Not sure we will be here for 8 years, but we do plan on staying for a good amount of time.
- Inflation protection (the unit can save me $300 today, but it might save me $600 in a few years as electric costs rise)
- Resale considerations: Having a backup system like this is appealing to home buyers in this particular market (they tend to focus on apocalyptic scenarios), should we sell this house down the road.
Your thoughts? Am I missing any financial considerations? Another thing I remind myself is this: In 5 years, there might not be tax credits and with inflation, this system won't be $38.3K net, but $100K.
I like the idea of having backup power, but I fear how it might look on the house. The $38K also is not really a consideration, it's just sitting in a bank somewhere earning .000001% interest and losing 10% annually in inflation.
@biophase , thoughts? This numerical analysis is always up your alley.
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