You may be forced to sell sooner and all your hardware investment calculations would go away.
A situation that forced me to sell my home seems like it would also force me to sell a Treasury bond (perhaps to raise cash so that I would not have to sell my home). However, I suppose you are making a liquidity risk argument which is valid. Hence, I was careful to say similar to a “US Treasury, held to maturity.” However, I still think you argument is an exaggeration for the following reasons:
- Surely your house increases in value by the present value of the future electricity savings. We see this with solar installations, so why not with batteries?
- Batteries may not be as liquid as a financial instruments, but they are probably one of the easier fixed assets to sell off for close to their fair value on short notice.
It may be stuck by lightning, destroyed in some other natural disaster and it will not be covered by some manufacturer's warranty, which may be useless anyway if manufacturer goes out of business which is very likely over decades.
Yes, but these risks can be mitigated by 3rd party warranties and/or insurance. You COULD structure the investment so that it is risk free by giving up some of your return. Since risk free investments are around 0% right now, the bar is fairly low. Also, solar panels are typically covered by home insurance, so it does not seem a stretch that a residential battery bank would be fairly easy to add on to an existing insurance policy.
And yes, insurance company will certainly charge you extra for extra risk, there is no free money.
Of course, but insurance companies exist because they cover risks of assets without causing the investment in the underlying asset to have a negative return. The risks to a residential battery bank are similar to the risks to a home, so it seems reasonable to assume the additional insurance cost to someone who already has home owner's insurance would be minimal.
most original S&P 500 companies are out of business or out of S&P.
Good point. The original poster seemed to be unaware of the concept of survivorship bias. . .
This is much better than the usual financial discussion that occurs on Slashdot. Now we just need you to make an account so that you are no longer an Anon and can help Slashdot have more rational financial posts.