Inflation is basically a rise in prices, which means the deterioration of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time. Depending on the viewpoint and rate of change, inflation can be viewed positively or negatively. We spend thousands of rupees per month on energy, and because of inflation, climate change, international relations, etc., the cost of energy is only escalating. However, there is a way to lock in a power price for the subsequent 25 years, limiting your monthly costs from increasing over time with the potential to save you more than 35% monthly by switching to solar power.
Solar Energy is an Investment
Installing a solar plant in your home will allow you to generate free electricity over the system’s entire 25+ year lifespan, saving you a tonne of money. Additionally, by making an investment in a solar energy system now, you can lock in the price of the electricity you buy now and guard against future price hikes. The majority of individuals install solar without making any upfront payments for the cost of solar and begin saving right away thanks to the availability of alluring solar loan choices.
Solar energy is one of the best investments you can make since, in the end, the panels on your roof provide more value in electricity throughout their lifespan than they cost to install.
Here are five factors that make solar energy a wiser investment than more conventional ones-
1.Return on Investment (ROI): Solar is a low-risk (warranted for 25 years), high-return investment. Most investments are either risky or have low ROIs.
2. Assured Returns: Your solar returns will increase as long as the sun is shining, so you don’t have to be concerned about things like a global epidemic or market fluctuations having an influence on your investment.
3. Taxiblity: Solar gains are not taxable since, unlike typical investments, they are derived from monthly savings rather than income.
4. Inflation Protected: Residential electricity costs increased by about 24% between 2012 and 2022, and this trend is anticipated to continue. Going solar can protect you from unexpected price increases caused by energy sources like coal, oil, and natural gas.
5. Enhances the value of your property.: Your system will, on average, boost the value of your property by 4.1%, if you pay for solar with cash or a loan.
6. Secure, Consistent, and Stable Solar Energy Access: Solar power plants are fed by free energy from the sun and have low maintenance costs, in contrast to fossil fuels that must be continuously collected, transported, and burned.The price of fossil fuels can fluctuate dramatically depending on world events because they are sold on a worldwide market. Between January 1 and June 1, 2022, the price of gas rose on average by 60%, indicating the knock-on effects of Russia’s conflict in Ukraine. Solar energy, on the other hand, is generated domestically, insulating it from outside influences, bolstering energy security, and guaranteeing that customers always know what to expect next to the dollar sign on their bills.
Thanks to increases in technology, solar panels are cheaper than ever to install because it now takes fewer panels to create the same amount of energy that it took even a few years ago.The typical solar system only requires 4-5 years to reach the point of complete financial recovery from the initial expenditure. With inflation and the instability of the financial markets, solar systems will probably increase in value. They are an incredible example of a hard asset. A solar panel system is a physical structure that harvests solar energy to create electricity. Electricity costs rise along with inflation, increasing the value of solar investments. By lowering the amount of energy you need to purchase from the grid, solar panels and battery systems protect you from escalating energy prices. Solar power is now the only widely used energy product that produces its own electricity. When you use solar energy, you depend less on the grid, which increases your energy and financial independence.
You are just returning to your pocket the costs of your electric bill for the next 15 or more years. Additionally, you can use that money to buy additional items that will make your retirement years more comfortable.