Residential Photovoltaics: Solar as an Investment

With the current State of the economy people are constantly looking for a low-risk place to invest their money. Edward Simburger, an electrical engineer and Solar Electricla Systems customer recently released a research paper that explores the valididty of solar as an investment vehicle.

In Mr. Simburger’s paper titled, “Residential Photovoltaics; An Investment Vehicle for Retiree’s II”, he sought to answer the question, can a residential photovoltaic system provide all the elements that would qualify it for consideration as a component of a retiree’s investment portfolio?

Mr. Simburger uses data from his own system, installed in two stages by Solar Electrical Systems, to compare the financial return from the PV system and two conventional investment vehicles. The FUSEX index and FXINX fund were used in this example.

The paper compares the financial performance of the solar array and competing investments, how income is deliverdd from the 3 investments, the differnce between after-tax PV income and after-tax dividend income, and the impact of increases in electric rates.

Source: Edward Simburger

Mr. Simburger’s paper concludes that when risk is factored in the PV system has lower risk and a built in inflation protection and is a valuable addition to an individual’s portfolio. In addition, the paper is an detailed look at the economics of owning solar in Southern California.

For a copy of Edward Simburger’s paperĀ  and more information on Solar, including a free quote, please contact us here at Solar Electrical Systems.

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