Comment Re:Economics Don't Work (Score 2) 418
1.) Rate of return is only low if you assume that energy rates (and inflation) are flat, which is historically inaccurate. If you consider a $20k system that generates $1000/yr in electricity, you should assume about a 5% annual increase in the value of the electricity produced... that means you're generating $2500 in electricity at the end of 20 years, with $35k total ROI for $15k profit. And, in this case, the higher inflation goes, and the higher energy prices go, the better your ROI is. Your payoff is year 14 with no tax credit, year 10 with a tax credit (in this scenario).
2.) Risk goes both ways. If you do solar + battery (which is the only way it comes from Tesla, who is also the lowest price around in most cases) you have just removed several categories of risk from your life. The setup could literally save your life in the case of a heat wave (or hard freeze) that knocks out the grid, but even being more modest, if it keeps the HVAC fan running in the winter it could pay for itself in a single outage event by preventing pipes freezing and flooding your home. Extreme weather and grid failures are both becoming more common. Solar systems are made with solid-state components with high reliability and generally graceful degradation... so your panels will be less efficient after 20 years, but will still likely be working. Also, I just sold a house with installed solar, I paid $27k, got a $8k tax rebate, and was paid $14k for it on the sale of the home thanks to being credited for it by the appraiser. Counting the $1800 a year it saved me over 3 years, and I broke even or came out slightly ahead, even with a worst-case scenario of a sale shortly after install.
3.) If you rely on net-metering to hit your ROI, you've sized the system wrong. In most places, you get paid wholesale prices for electricity produced, but you get charged retail price for electricity consumed. Size your system so that you generate 80-90% of your electricity demand and that entire risk becomes irrelevant.
Rooftop solar is a huge reduction in many important categories of risk. It allows you to completely disregard inflation - the more inflation skyrockets, the better your ROI. Solar + electric car means that your transportation budget doesn't change whether gas is $1/gallon or $10/gallon. It makes you more resilient to the expensive and possibly life-threatening risks of extreme weather and grid outages.
Any investment has risk, but the ROI on solar kicks the shit out of stocks, bonds, or crypto over the past couple years, and simultaneously provides peace of mind benefits and real-world utility.