Solar water heating economics

10 Aug 2009

Show me an asset that provides the owner with savings and a payback? Solar water heating on the other hand.....

Show me an asset that provides the owner with savings and a payback? Motor vehicles are commonly referred to as an asset yet they cost money to operate, maintain and depreciate in value. The operating expenses continually climb therefore increasing the overall cost.

Solar water heating on the other hand is the complete opposite. A quality system that requires little to no maintenance will provide savings for the life of the product. These savings will increase on a regular basis as power prices climb by over 7% per year on average, approximately double that of general inflation.

If you were to put this investment on your mortgage it will effectively deliver an improving  asset with an interest free loan funded by the savings made from your reduced power costs. EECA (Energy Efficiency & Conservation Authority) have continued to commit to subsidise qualified systems by $1000, so this is your very own Kiwi saver.

Even if you have money sitting in a bank account earning a wopping 4% which is taxed at 33 % (effectively 2.7 % net) where is the value in that.

This investment has no subscriber fees or penalties for withdrawing within a shortened time period.

Your INVESTMENT is safe, you control the benefits and you are able to market this asset if you decide to move on and sell your home.

Consider this unorthodox investment opportunity that can immediately provide an ever increasing, tax free, return on investment.

James Brown