Saturday, August 25, 2012

Investor paradise, Only if you know what to look for

Why investor paradise, you ask?  Because in days of low interest and high risk of the stock market. Even in these days of uncertainty and an economy that can dive into recession any day, what can you do to grow your money at better than 6% in something safe that can be dependant on for long term income. That would be solar, but only in the right ways, by investing in quality solar panels and other equipment not junk. By using a good developer that uses quality installation companies. Making sure you have a warranty that backs the product and is backed by a re-insurance policy that covers the warranty if the panel company goes out of business and you still have warranty but no one to back it.
Next is very important in who is going to buy the electricity from your investment, how credit worthy are they, will they still be around for the end of the agreement period.
Now I will tell you a couple of ways to invest in solar. First, solar for your own use at your home or business. This investment lets you take a bill that you are already committed to pay for the next 20 or 30 years, unless you are planning to live in the dark. So, lets look at this closer. You use 2000 kilowatt hours per month, lets say.  2000 kwhr times 360 months (30 years) 720,000 kilowatts, that is how many kilowatt hours you will use in 30 years. Now you times (multiple) 720,000 by what you currently pay per kilowatt hour average in Texas is 9.7 cents = $69,840. So without any increases, you know that's not happening, you are already going to pay $69,840 for electricity in the next 30 years. You will need about a 16 kw solar system to meet your electric need each year. Solar is sold by the watt, so 16,000 watts =16 kw   16,000x$3.50 per watt=$56,000 The federal tax credit is 30% so minus $16,800= $39,200  I am not going to figure depreciation as that is different for everyone and I am not a CPA.  So $39,200 divided by 720,000 is a  lowered cost per kilowatt hour to 5.44 cents per kilowatt hour. A savings of 4.26 cents per kilowatt hour= a savings of $30,672 over that 30 years that is over $1000 per year savings on something you are already going to be paying for. So you see you are saving money by paying upfront for your electricity.  Same as if you pay your mortgage off early.
The added benefits of moving to solar is the environmental issues, you will save the air and water, and non renewable resources. You will save trees, coal, natural gas, and nuclear will not be needed.
It is safer, less maintenance, does not pollute, and everyone that goes solar lowers the demand on the grid which helps everyone.' Next post will talk about investing in Solar Farms and the next after that will talk about investing in a Power Purchase Agreement for an Off Taker, I will explain more about this later.

Thursday, August 23, 2012

Changes you might not be ready for

Changes you might not be ready for in the coming years. Besides black-outs and rolling brown-outs that could last up to weeks. When the electricity is on it will just keep going up as the smart meter allows them to charge time of use billing. This will make us pay a premium for midday peak hours because they can. Supply and demand, "You know!" Take advantage of the public who does nothing to change the future before it gets here. The electric companies will not move to solar because it does not afford them the opportunity to keep raising the price of electricity.

Simply put: 1. Hydro Electric plants are very costly to build, limited on locations they can be put, and can't be used by the general public to take control of their own electric needs. Hydro plants need lots of up keep and only generate when there is enough water behind the dam to generate power. Many employees needed.

Number 2. Nuclear plants are very expensive and very dangerous as we all know. Need I say more.

Number 3. Coal Fire plants are expensive to build, takes many employees to run and maintain, expensive fuel cost in Texas alone cost of coal for electricity is over $12,800,000.00 per year. That puts 252 mega tons of pollution into our air. Good Grief Charlie Brown we should be able to do something better than that. I say that cost is to great!

Number 4. Nature gas, first off there is nothing natural about it. You know they have to drill to get it that is costly because of the risk of failure. Then they are fracking to pull the gas out of the shale. To frack they pump liquid ( and they are not required to tell you or the government what liquid into the well to bring up the gas. That is causing earthquakes in Texas and Oklahoma that did not have them before. Plus they are damaging our water table where we get our drinking water. Then they burn it to make electricity and pollute our air. Maybe not as much as Coal Fire but they pollute both air and water.

Number 5. Wind, is expensive to put up because you need a lot of space to put one of those hugh wind turbines. You have large moving parts which creates liability, and maintenance issues. But does not need a lot of employees, don't have to buy fuel to operate, and does not pollute anything but our view. Normal people can't put them in their yard for personal use either.

Number 6. Solar, You pay for your 30 or 40 years worth of electricity up front at a big savings, but big hurt up front. If you are paying 9.5 cents per kilowatt hour today in 20 years you could be paying 59 cents for the same kilowatt hour without doing anything just keep paying your electric company for their service. Or pay up front for your electric at 2.5 to 3 cents per kilowatt hour for 10,000 watts and not have any increases to your electric bill. Levelize your cost and transfer the system to the new owner if you sell your house and most likely recover your initial cost back at that time since you already would have taken advantage of the 30% federal tax credit, the 50% accelerated depreciation and the savings on your electricity for however long you used the system up to that point. You made a big step to saving the planets air, and water, had little to no maintenance, no liability, you can put it on your roof or in the yard, make a car port with it.
If utility company would go solar, no pollution, little employee, no fuel cost, no liability, decreasing cost of electricity, easy growth potential just add more panels as the need grows solar utilities can grow with the demand. Energy from the Sun, What make more sense to you?