The Great Recession has left a lot of Americans approaching retirement in a bad position, as many investors and 401K holders have seen their assets drop in value. Adding to this problem is the fact that interest rates are historically low, and one can only earn so much on certificates of deposit (CD) and other types of savings accounts.
Diane Hammond, a resident of Sudsbury, Massachusetts, found herself in a similar situation when she researched options for investing $30,000 to earn income for retirement. Forbes explains how Hammond could only hope for an interest rate on a CD of about 0.4 to 0.5 percent, a low monthly income that couldn’t possibly support her when she retired. So, she looked for an alternative that would help save money and generate a decent return on investment.
Hammond has found the solution to her problem by investing in solar energy and pre-paying a 20-year lease on a solar electric system. The savings on her energy bills, coupled with renewable energy credits and other government and utility incentive programs, are far greater than what she would have earned from a savings account.
“I figure I’m going to pay off my original investment in about five years and make 20% on my money (in total, savings and [solar renewable energy credit] payments come to about $2,500 annually),” Hammond told the source. “I thought, ‘Wow, this is much better than a CD. I’m killing two birds with one stone – lowering my electric bill and getting money with interest.”
While leasing works well for some consumers, purchasing a solar system is another option that can lead to great savings for future retirees. For example, AMECO Solar customers Linda and Dan bought solar panels as a way to save money on their monthly utility bill and free up their budget in preparation for their future retirement.
Now that their solar panels are installed, they have reduced their bill to almost nothing and estimate a savings of $3,000 each year. Over the lifetime of the solar system (typically 25-30 years), their annual savings will add up to a significant amount and will result in an impressive 19% return on investment.
Current and future retirees should consider solar installation as an investment alternative that produces a healthy ROI. Whether leasing or purchasing, solar panels could be a good investment alternative to traditional investments. For more information, contact AMECO Solar at (888) 595-9570 or email us at firstname.lastname@example.org. We would be happy to evaluate your energy needs and show you how a home solar installation could give you a good return on your investment.