Solar is the future of energy

Benefits of solar:
1) Practically infinitely scalable unit economics (i.e. efficiency)
2) Localized installation (no need for heavy investment in electrical grid infrastructure)
3) Minimal regulatory obstacles
4) Low upfront cost, affordable enough for every household to sustain their own cost with loans
5) Easily and cheaply maintained
6) Environmentally friendly
7) Politically acceptable on a widespread scale

Cons of solar (as an investor):
1) Commoditized 
2) Massive competition
3) Inevitably cheers economies of scale and industry consolidation

If you want to know what Public Bank or Top Glove looked like 40 years ago, they looked like one of the small solar companies today. In 40 years time, one of these small guys is gonna become a Public Bank.


Solar on new-build homes has significantly shorter payback period

The Realizing the Potential of Customer-sited Solar study claims the five-year payback period for solar arrays retrofitted onto buildings in the Golden State is halved for systems installed at the initial construction stage of buildings, because of reductions in marketing, sales, labor and construction costs. Thus, according to yesterday’s report, solar systems on new-builds in California can offer an internal rate of return (IRR) of 40% per year on their investment cost, rather than 20% IRR offered by retrofitted systems.

BloombergNEF and Schneider have calculated the 18.5% IRR for retrofitted solar systems in France could rise to as much as 28% if photovoltaics were to be made compulsory on new-build homes.

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