16 Oct How To Reduce or Eliminate Electric Bills With Light Solar
My name is Michael Santos. As an investor, I’m always looking for opportunities to increase value. One surefire way to increase value in properties I own is to lower operating costs. And as an owner of six residential properties, I know the huge monthly costs associated with electricity expenses.
A solar panel system generates FREE power for a power system’s entire 25+ year lifecycle. Even if the solar system doesn’t produce 100% of the energy a property consumes, an investment in solar power reduces utility bills and saves a lot of money.
And everyone knows the cliché that a penny saved is a penny earned.
In some of my properties, I cover the costs of utilities for my tenants. The average monthly electric bill of $100 stretches to more than $1,200 per year in expenses. Since metrics like income and expenses come into play when I value a property, $1,200 per year is significant-especially when considering the lifetime value of the asset. Even before I take annual increases for electricity expenses into account, I budget $24,000 in electricity expenses over the course of 20 years.
That makes an investment in solar a bargain, for several reasons.
By installing solar systems in my properties, I take myself out of this cycle of burning money with electricity costs. I can eliminate the electric bill completely, or I can reduce electricity bills so dramatically that electricity costs are no longer a significant factor in my budget. The amount of savings I make will depend on a few different factors, such as:
- How much energy my system produces
- How much energy my properties consume
- Rates that the utility company charges for each of my properties
- Annual increases in those rates from utility companies
Basically, investing in solar energy is an investment in my property that pays for itself! Further, A solar system represents an insurance policy against the seemingly extortionate increases in rates that utility companies can levy against me without warning. Since I expect the utility companies to continue raising rates each year, my investment in solar pays a bigger dividend every year.
As long as the Southern California sun shines, I’m building value while simultaneously doing good things for the environment.
Reducing electricity expenses with an investment in solar energy is a prudent and responsible step. Solar power allows me to manage my expense budget with fixed costs over the lifecycle of my properties. My investment in solar brings immediate value with lower energy costs, and more value when I choose to sell the property. With solar power, I’ll able to show predictable expenses-which translates into more predictable cash flow.
The side benefit is that my wife and I enjoy doing good things for our environment.