Return on Investment
CHOOSE A PAYMENT PLAN THAT WORKS FOR YOU
A. DIRECT PURCHASE OF SOLAR ELECTRIC PRODUCTS BY FAR THE PREFERRED METHOD TO SAVE MONEY.
Solar panels are a simple yet very effective way to make your own electricity and save millions of pesos over the years.
The return on investment is only four to five years! The lifetime of the solar panel is 40 to 50 years!
These systems include panels, installation racking, and an inverter system to change the DC (Direct Current) produced by the panel into AC (Alternating Current) used in our grid. There is also monitoring to know “exactly” how much electricity is being generated.
Since these systems generate electricity only during daylight hours, your property will still be connected to the utility service in your area. Batteries will become affordable to use with these systems in approximately three to four years.
B. FEED IN TARIFF / RENT TO OWN / SOLAR LEASING
Rent to own is technically known as “feed in tariff." There is no initial investment necessary. No money to start.
You pay a financing firm for the electricity produced during the day at the same rate or less that you currently pay your local utility for electricty. Your budget stays the same.
In most cases, this rate is “locked in” for the term of agreement – it will not go up annually as your local provider does. But some leases escalate annually.
At an agreed upon term (usually 20 years) you will have the option to:
- Remove the equipment.
- Refinance the lease.
- Purchase the 20 year old equipment for fair market value. Which seems redundant as you could have owned it 15 years ago or even earlier.
INVESTMENT BASED ON SIZE OF SYSTEM
ONE PANEL COST = PH ₱ 22,500.00 *APPROXIMATE COST
ONE PANEL SAVINGS PER MONTH = PH ₱ 400.00+
EXAMPLE OF INVESTMENT RETURN
Return on Investment = 22,500 ÷ 440 = 51 months
Factor in depreciation for commercial application = ₱ ₱ ₱
Factor in increasing costs from your utility company = ₱ ₱ ₱
RETURN ON INVESTMENT = 4 TO 4 1/2 YEARS
SOLAR LEASING VS DIRECT PURCHASE
Just as leasing a car is expensive relative to direct purchase, so is solar leasing. Over the usual 20 year term of the lease, you pay five to eight times the cost of direct purchase!
HOWEVER, THERE IS A MIDDLE GROUND – BANK FINANCING WITH AN AVERAGE TERM OF ONLY FIVE TO SEVEN YEARS.
BUY NOW – OR WAIT
The idea that solar products will perform better in the future is given. Waiting for that day is a bad economic plan. The cost of your electric bill payments will accrue while waiting and you will have lost much more money than you could EVER save by technological advance.
Remember, it’s all the same in the end – free electricity. You don’t need the latest and greatest panel to produce the exact same product.