Installing the solar panels at the rooftop can be one of the best investment strategies for those who are planning to secure their financial future after retirement.
The following points support the title of this post:
Consume more electricity
People after their retirement prefer to stay at home and enjoy life. Staying at home for long hours simply means more consumption of electricity.
It means that you need to shell out more money every month to pay your electricity bills. The solar power system can provide you cheap and smooth electricity for decades and can save you a lot of money which you can further utilize in securing your financial future.
Stable investment plan
When you plan your retirement, you look for options which are less volatile and stable to secure the financial future.
Investing in solar panels is comparatively less risky and more stable recurring income generator than any other financial instrument, like stocks, property or gold, available in the market.
See the impressive annual returns offered by the solar in the following states:
Hedge against the rising electricity prices
It is a fact that the grid electricity prices are going to rise in the future. It means you will be paying more year after year for the same number of units consumed. This price rise can create an imbalance in your financial portfolio.
The best option to hedge against the rising electricity pricing is to invest in solar electricity. After its payback you will enjoy the free electricity for many years, relieving you from the tension of price rise in grid electricity rates.
Reducing the carbon footprints
You know that most us get electricity from the coal-fired power plants. Each unit consumed by us from these power plants affects and degrades the environment.
As solar is one of the cleanest fuels available, therefore, by investing in it, we are helping in reducing the carbon footprints from the environment and making it the right place to live.
Enjoy rebates and tax benefits
Most governments across the world offer incentives and tax exemption for installing solar power system at the rooftop. This further makes solar a lucrative and more feasible energy option.
Moreover, the amount you are going to save every month, after installing solar, can be invested in other stable financial instruments like pension funds. This will further ensure your financial stability after retirement.
Right age of going Solar
Is it right to invest in solar panels after 60 years of age?
I would say NO, and it has 2 main reasons behind it. The solar is going to give cheap electricity for the next 30 years. Those you install solar at the age of 60 first need to cross the payback period to start getting free electricity and second will have to reach 90 years of age to enjoy the full benefits of solar.
But the average life expectancy of the world is around 71.5 years and it may not be possible to reach at 90 years of age. So, investing in solar after retirement is not so lucrative option until you plan to pass on its benefits to your children.
After doing the math, the right age of investing in solar so that you can enjoy its full benefits after retirement is somewhere around 40 years.