I spoke to a solar energy installer about 2 1/2 weeks ago about installing a system on my home and on a multifamily investment. The installer spelled out all the financial advantages of solar energy aside from the Green factor. He cited the requirement of my utility to buy back excess production from my solar panels, the state tax incentives, the federal tax incentives, and perhaps some other financial positives. In the end, I asked him to provide a spreadsheet to me with my ROI for going with solar energy and he agreed. If I see a good ROI compared to my ROI on investing in multifamily income property and other financial instruments, I will have the solar panels installed. It’s been 2 1/2 weeks and I have not received a spreadsheet with a ROI so I suspect that the ROI is not there.
I believe part of the issue with a solar energy investment is that many of the “financial returns” come from tax incentives. Real estate investors tend to already have tax writeoffs from depreciation and do not need tax writeoffs from other investments. That makes this Green Energy Technology investment a bust for multifamily income property investors.