A solar investment, on average, earns between a 9% and 17% annual rate of return (there is also a way for solar owners to experience an infinite return, explained below). This means the total return on investment period can be anywhere from 5-11 years. However, this is misleading, due to the fact that there are loan programs and additional discounts available that can decrease this time. These numbers assume that utility bills will stay constant, where in actuality, utility bills are guaranteed to go up, with estimates ranging from 2-9% annually. The faster the electric rates go up, the better the return for property owners. The other aspect of a solar investment to consider is that this is not like a traditional investment, where a home or business owner must choose between buying a stock, putting in a new kitchen or deck, and simply saving that money for other investments. The decision to buy electricity was made the moment each owner purchased the home or business property. There is no realistic option to live without electricity in modern society. This means an investment in solar is not a decision between a certain percentage return versus another percentage return, it is a choice between throwing your money away on “renting” your electricity through your utility, or “owning” and seeing a return at all! This makes going solar a no-brainer because solar owners are taking money that is already being spent, and instead of letting it go towards nothing, they are claiming, for the first time, the benefits of local, clean energy production.
So far, the question of ROI has been centered around cash buyers, but what if a property owner were to finance? This is where the solar installation companies, such as Solar Is Freedom, have really thrived. There are currently zero ($0) down finance options that can create a situation for home and business owners where they pay no money upfront, take advantage of the tax credit before tax season, and save money from day one. This means that these solar owners will see an infinite return! These owners will be in the green from day one!
Through 2019, the federal government is offering a 30% rebate on the total cost of a solar install. This is a huge help to many of our homeowners and makes it very affordable. The main incentive in Ohio is of course Net Metering (process explained below). State and local incentives include may also be included, such as a property tax freeze in Ohio, Indiana, and Kentucky.
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