An independent think tank believes Australian retirees investing in solar power will find it a more profitable investment than BHP Billiton shares and safer than bank shares.
Writing for the Australian Financial Review, David Hetherington, Executive Director of independent progressive think tank Per Capita, says new “solar plus storage” technology for homes and small businesses offers a way for retirees and others to future proof against rapidly escalating electricity costs.
Mr Hetherington says if a power bill is $1000 a year and it’s paid for with post-tax earnings from BHP dividends today, $47,000 worth of BHP shares would be needed to cover the cost of that bill. However, a 2kW solar power system, costing a fraction of the BHP share value required, would be all that is needed to offer the same financial benefit – and without any other incentives such as solar feed in tariffs taken into account.
Solar power provides an additional financial boost over many investments as the dollar benefits are in savings – which are not taxed. Other forms of investments, such as shares or rental property are taxed; meaning the tax liability should be taken into consideration when performing an apples-to-apples comparison of solar compared to other investments.
Mr Hetherington points out that on top of the financial benefits, investing in a solar power system will also reduce a retiree’s greenhouse gas emission impact and take load off Australia’s mains grid; an issue becoming more pressing as Australia’s population and hunger for electricity grows.
National solar solutions provider Energy Matters offers an instant online solar quote tool that allows consumers to quickly gauge an estimate of financial benefit based on the installation location and size of a solar power system; along with data on estimated payback times and environmental information in relation to greenhouse gas emission mitigation.