We’ve been thinking a lot about Inflation, Economic Uncertainty, and Solar.
It’s been a challenging year. There is a war in Ukraine, inflation in the headlines, and “economic uncertainty.” As we wait for the analysts to officially call it a recession or not, we discuss the price of eggs, gas, and milk and we worry about the future. If you remember your lessons from science class, we are wired with instincts to “fight, flight or freeze,” and that’s what many of us are doing, especially regarding investments and spending. While that ‘freeze” instinct may be helpful when considering if the time is right for a big vacation or replacing a “good enough” vehicle with a shiny new one, it works against us in this inflationary period.
We install a lot of solar for a wide variety of clients, and over the last 23 years, we have always asked our solar clients “why” they are going solar. This year we are seeing an interesting trend. While many of the answers still include “the environment,” there is a significant uptick in clients treating solar “as an investment.” Digging deeper, these homeowners are looking at inflation and know that keeping money in the bank means watching it lose value over time. They also are anxious about stock market volatility after a year like 2022, when the S+P lost almost 20% of its value. Their solution? Investing in their home with solar as a hedge against inflation.
Learning From The Past
Imagine if you could go back in time and buy 30 years worth of gasoline for $1.11 per gallon in 1993.
While that would be a lot of barrels stacked up in the backyard, going solar is a much simpler way to “pre-purchase” a decade’s worth of electricity.
Our customers that own their solar power plants own their future – no matter how fast or how high electricity rates increase.
If they have or eventually buy an EV, they will also be insulated from ever-rising gasoline costs. These customers did the research, called Kokosing Solar, and made the jump from “freeze” to “fight”, taking action against inflation and market uncertainty by investing in their homes. On top of all this, the “return” from a solar investment is TAX FREE because it saves money that would have been spent rather than earning taxable interest.
Many of our customers are not sure how long they will be in their homes… more space is needed for growing families, empty nesters downsize… people move. Will they see the same return? These are important considerations, and while each situation is different, our customers that go solar are often considering the impact of a zero or very low electric bill on their home selling process. According to a nationwide Zillow survey of homes that went solar, going solar adds 4.1% to your home value. It only makes sense that home buyers recognize that electric utility bills are important considerations when choosing a home, and a home that includes a high-quality solar installation can demand a premium price.
Taking Action This Year
While the future is uncertain, one thing that is certain is the sun will always rise.
We all have a lot going on right now and it is understandable to hit the “pause” button on major decisions.
In these conditions our “fight-flight-freeze” instincts are activated and amplified. While many are stuck in a “freeze” mode, letting their savings be eroded by inflation, others decide to “fight”, taking action where they can. For some, going solar is a great way to continue investing for the future, and lock in savings now. Give us a call and let our 20+ years of experience show you how we can help you invest in and save for the future. We will provide a detailed report, answer all your questions and do all we can to help you take control of your energy and own your future.