So…if cost/watt is high (like in Cali it should be above 20 cents/watt), then everyone should finance Solar.
If you finance at like 0.99% interest over 20 years, you pay NOTHING upfront….but you get the 30% tax credit NOW. That basically gives you a tax credit for the first several years of the solar panel monthly payments. All while you’re paying a lower monthly bill vs what you’d be paying normally (especially so if you have an EV).
Eventually over course of 10 years the inflation should eat away the difference of paying cash upfront, and with us we can hodl more tesla share in the meantime.
This sounds like free money tbh, assuming your financial cost/watt is under like $6 and you have access to get that loan.
Why shouldn’t everyone do this???
1) if you have no tax liability to take advantage of the credit (rare scenario, but sure)
2)some psychological anti debt mantra (okay, that’s fine but I’m just looking at economics here)
3) you believe inflation won’t be high enough over 20 years to make this worth it (team Cathie Woods deflation)
4) you think you will resell house in short time period (5-8 years) and the cost of paying off the solar loan then exceeds the savings accrued (or you want to pass off the loan but then becomes liability and hurts your ability to find a buyer). Honestly if you live somewhere even 5 years only I think this scenario is widely mitigated against? Maybe I’m missing some math or greatly overestimating added property value to a fully owned solar system)
Thoughts???
If you finance at like 0.99% interest over 20 years, you pay NOTHING upfront….but you get the 30% tax credit NOW. That basically gives you a tax credit for the first several years of the solar panel monthly payments. All while you’re paying a lower monthly bill vs what you’d be paying normally (especially so if you have an EV).
Eventually over course of 10 years the inflation should eat away the difference of paying cash upfront, and with us we can hodl more tesla share in the meantime.
This sounds like free money tbh, assuming your financial cost/watt is under like $6 and you have access to get that loan.
Why shouldn’t everyone do this???
1) if you have no tax liability to take advantage of the credit (rare scenario, but sure)
2)some psychological anti debt mantra (okay, that’s fine but I’m just looking at economics here)
3) you believe inflation won’t be high enough over 20 years to make this worth it (team Cathie Woods deflation)
4) you think you will resell house in short time period (5-8 years) and the cost of paying off the solar loan then exceeds the savings accrued (or you want to pass off the loan but then becomes liability and hurts your ability to find a buyer). Honestly if you live somewhere even 5 years only I think this scenario is widely mitigated against? Maybe I’m missing some math or greatly overestimating added property value to a fully owned solar system)
Thoughts???