Is it better to invest in solar panels now or wait and install them in the near future?
In theory, this idea makes a lot of sense: solar panel costs have plummeted. Over the years the declining prices have resulted in great solar growth. Deferring your solar investment will likely result in a cheaper installation and upfront cost. You will also benefit from higher quality panels as the technology continues to improve. Similar scenarios can also be seen in the mobile phone or car market. Prices go down and quality goes up; however, solar works a little differently.
By delaying your decision to invest in installing PV panels, you often end up paying more – substantially more!!
1. Diminishing government subsidy:
The government can only subsidize solar panels for so long, with increasing solar growth, it is only a matter of time before the 30% subsidy by the MNRE runs out. Lack of this subsidy will jack up the benchmark cost.
2. Delaying solar panels will drive up the cost which in turn will lead to longer payback period because of higher upfront investment. The returns will also be lesser because of the same reason.
3. When delaying your purchase of solar, you still have to deal with the ever increasing electricity bills which go up at an alarming rate of 10-15% each year. In some months, those bills can be obscenely expensive. This is especially true in the summer when your AC unit is working at full capacity. The irony is that all of that summer sunshine is free energy that could keep your home cool if you had solar panels installed.
4. Equally important, installing solar panels also helps to make your community (and planet) that much cleaner. The sooner you invest in solar, the sooner you can reduce your carbon footprint.
5. If you don’t invest in solar you’re missing out on financial benefits and instead of letting your money lie idle or in an FD, you’re better of investing in Solar and reaping various benefits. Fixed deposits get you a return of upto 7%, but solar can easily give 15-20%.
The best time to invest in solar was yesterday.
The next best time is today