Friday, August 19, 2011

Better Than Money In The Bank

I think solar panels are a good investment - and i tell people so. Do i mean financial investment, or an investment for the planet? Well, both actually. The second is obvious, but for the first i did the maths.

As a straight return (savings divided by investment) i calculate an average of 19.1%. When you consider that bank interest is taxable, then a bank would have to give an even higher interest rate to provide the same value after tax. For a mid-range tax bracket, the bank would have to offer an average of 27.3% to match the value of solar panels. And i can't see that happening any time soon :)

[Link: My calculations in detail]

PS. Obviously, i've based these calculations on the conditions in my location of Brisbane, Australia. Sunshine, electricity prices and panel costs may vary from location to location.

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