Steve

The current logic says install a solar system or buy a house with a solar system but is there really a value of a savings outside of the environmental aspect. So lets run some numbers. A while back we considered installing solar a 12-panel system and the cost was $ 14500.00 USD (for clarity all MDP have been converted at the old rate of 20 to 1) . Being a business owner, I always look at the Return on investment on major purchases, being a homeowner I look at the net value increase of these types of projects.

  1. So, we run an AC unit 24/7, the pool pump 3-4 hours a day, the usual appliances, computer systems, washer/dryer 2x a week and have a separate pump for the well and cistern our average CFE (Electric) is around $ 150 per month.
  2. So if I do the basic ROI formula from the purchase price vs cost, I am looking at 96.6 months before I even start saving money or slightly over 8 years. That is a long time to see a return on any investment,
  3. This does not include any additional CFE charges that seem to pop up from new bi-directional meters, replacing infrastructure or other fees,
  4. There is still a monthly account charge of about 5.00 per month regardless of how much electric you generate, over the ROI period this will add another $ 500.00 dollars,
  5. Approval from CFE is required, this approval is obtained AFTER the system is installed, while I have never heard of approval being denied, it is still a possibility,
  6. Bribes, kickbacks, fees, call them what you want but they are rampant and usually hidden in the system cost.
  7. The above numbers do not include insurance, maintenance, repairs,
  8. As the system ages so does the efficiency, at the end of the ROI period you may only be producing 20-30% of the original numbers
  9. I have spoken to 4 different “real estate” agents, and all agree that depending on type, age, service records add a value of between 4-10k on the home listing

So from a strictly money point of view the value just isn’t there. If you are doing it to save the planet fill your boots, if you are doing it to be “off grid” then add in battery system to above numbers. Avoid the hype.

See you on the beach….
Steve “The Beach Gringo in Chief” Patterson