The Economics Of Adding Rooftop Solar Panels To Your Home

The Economics Of Adding Rooftop Solar Panels To Your Home

Going solar has never been easier and more cost effective – why keep waiting?

Though prices continue to go down, current technological advancement has easily surpassed the breakeven point, making solar panels a viable investment for cost savings now.

Investments into solar systems can be made in three forms: cash, loan, and lease. Paying upfront maximizes savings, but more conservative investors will still experience instant savings that, accumulated over time can be quite substantial as well. The abundance of financial benefits to going solar make it a no brainer.

Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More


Q3 hedge fund letters, conference, scoops etc

Rebates and Incentives

Solar rebates and incentives curb the initial cost of going solar. Up to $10,000 in savings is available for the average property that can needs a system size of 6.5kW. This amount comes from a variety of agencies that at the federal, state, local, and utility levels.

In addition, if your project qualifies for more than one set of criteria, you can reap the benefits from multiple incentives. For example, the solar Investment Tax Credit (ITC) provides a 30 percent tax credit for homeowners that purchase a solar system.

However, the incentive amount decreases with each passing year. Create a project with PickMySolar to scope out the incentives relevant to you.

Avoid paying utilities

Take a look at your energy bills over the past year to get an idea of how much money you can save by installing solar panels.

Assuming your average monthly bill is $250, you can expect your energy bill to be reduced by over 40% with a solar loan payment replacing your utility costs. This is a consistent discount that guarantees that you won’t be affected by annual rate hikes.

Long-term savings

For the average homeowner expecting to own their home for 20+ years, the total long-term savings from not having to pay utilities should provide a steady stream of cost savings. Furthermore, solar installations offer a higher return than any other home improvement project, making the property more desirable.

Solar-powered homes are in high demand, with California homes selling 20% faster at a 17% higher price than comparable homes on the market.

solar panels

3 Tips for New Solar Shoppers

  1. Think about where to position solar panels on your property. There are a variety of factors, such as facing south when located in the Northern Hemisphere.
  2. Find out which inverter is right for your system.
  3. Look into different financing options: purchase, loan, PPA/lease

Check out this solar starter guide for an in depth overview into making your decision to go solar.

Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article How Would You Manage A Staggering Amount Of Cash?
Next article North American Hedge Fund Count Is Stagnating; Here’s Why

No posts to display