Revisiting the Solar Panel Discussion

[judomarshall]

Hi all,

Sorry for the flood of posts, but I thought breaking my questions up into different threads might be helpful in the future so people can find what they are looking for more easily.

A couple years back, Ben wrote a great article on solar panels in Japan. Minuszeroeco.blogspot.com also has come great info regarding solar panels. However, in the last year, feed in tariffs have been decreased and the overall solar scheme seems to be losing some popularity. A quick google search on the subject indicates that solar companies have been hurt pretty hard by the revisions in feed in tariffs.

With the recent changes, I would like to hear opinions on whether you think solar panels are a good idea from an ECONOMIC standpoint. I already believe they are good for environmental reasons. Unfortunately, my salary won't allow me to make the decision to purchase purely on environmental grounds.

Thanks in advance, and here are some articles about the subject:

https://www.retirejapan.com/blog/invest ... ar-panels/

http://minuszeroeco.blogspot.com/search ... A%E9%9B%BB

https://www.japantimes.co.jp/news/2018/ ... Js8-uszZTY

[ricardo]

No, they are not a good idea.

[StockBeard]

I am buying solar panels for my (not yet built) house.
In the simulations I've seen, it will take from 10 to 15 years for the solar panels to be "paid for" by the energy savings. But these simulations looked overly optimistic, because they don't forecast any maintenance cost whatsoever. I'm convinced something bad will happen to the panels in the next 15 years.
Also, by comparison if I invested that money, in 15 years it would probably be worth 3 times the amount, meaning I technically lost a lot of money by paying a lot upfront in exchange for lower electricity bills for 15 years (house builders offer some very low interest loans for solar panels though, so the "investment" comparison I'm making is not entirely fair).

I'm also less and less convinced by the environmental impact. Compared, for example, to properly insulating your house, I think solar panels should have a much lower priority if your wallet is asking you to choose.

With that being said, I still signed up for it because I think the only way we get those "green" energy sources to become more reliable is to show that there is interest in the product. So, that's me trying to move the scale, even if not by much.

[RetireJapan]

There is a case for buying the panels with your mortgage and therefore putting the electricity savings toward the loan therefore leaving you in a similar position financially. We thought of doing this but in the end didn't bother as we paid for my wife's parents' reform with cash.

[judomarshall]

Compared, for example, to properly insulating your house, I think solar panels should have a much lower priority if your wallet is asking you to choose.

With that being said, I still signed up for it because I think the only way we get those "green" energy sources to become more reliable is to show that there is interest in the product. So, that's me trying to move the scale, even if not by much.

Ben, Stockbeard, thanks for the informative posts. I particularly liked what is said here. I suppose getting insulation in order would be a better choice upfront.

Ben, yes, I think if I do go with solar panels, I would like to purchase them with the mortgage. It's all kind of tricky because ideally, I would like to live in the house for a period before having to decide what changes to make, but unfortunately, I have to show the bank some estimates of the reforms before I am able to borrow.