6.3 kW System Installed in South Redondo Beach (Torrance)

On Saturday we completed the installation of a 6.3kW system in South Redondo Beach (Torrance) and it went great! The system will save our client over $3,000 in offset energy costs the first year. That calcs out to an 18.5% return in the first year. This return increases annually by the constant rate of energy cost increases. The system is also maintenance free and emissions free.

Visit us at sunbeamtech.net for more information and check out our installation gallery. We've installed throughout the South Bay, including Manhattan Beach, Redondo Beach, Torrance, Long Beach. We've designed systems throughout LA County. If you're interested in a free estimate please email me or click here.

A Rationalists View of Solar Energy

Dated 2/14/10

So……you’ve been on the fence about spending money on a Solar Power system for your home. Perhaps it’s the economic situation, or maybe there are other things out there you’d rather have for 20 to 40k. Maybe a new 3 series BMW gets you a bit more excited than having a bunch of black panels on top of your roof? (I like the look of em, but hey, I am biased! …so take my opinion with a grain of salt)

My goal here is not to explain every benefit of installing solar to “sell”you on it...rather, is to help look at it in plain financial terms. Yes, solar will save you money, its good for the environment, has incredible rebates and tax incentives, and the technology appears to be at a point where it is replacing old forms of power generation like coal and oil. It even looks better than it did in the past, with sleek black frames and low profile mounting systems! ….Okay enough with all the positive one – liners, the following bit of info will help you see how Solar Power for your home stacks up to other investments you have made or will make in the future.

Lets take the past 20 years of stock performance in the S&P 500, for instance, and project the gains (and losses) over the next 20 years. Sure we have had volatility, but the losses in 2008 have almost been erased by the gains in 2009. We will take the average increase in electric rates as the average annual increase of 7%, which is standard. (The past four years, rates have increased over 10% annually! ) We will take a $20,000 investment in the S&P, and a $20,000 investment in Solar Power, and then compare to see where the chips fall.

year	S&P	Value (S&P)	Electric Rates	Annual Return (Solar)	Value (Solar)
1990	-3%	$19,360.00	7%	$4,260.00	$4,260.00
1991	31%	$25,264.80	7%	$4,536.90	$8,796.90
1992	8%	$27,210.19	7%	$4,831.80	$13,628.70
1993	10%	$29,931.21	7%	$5,145.87	$18,774.56
1994	13%	$33,822.27	7%	$5,480.35	$24,254.91
1995	37%	$46,471.79	7%	$5,836.57	$30,091.48
1996	23%	$57,206.78	7%	$6,215.95	$36,307.43
1997	33%	$76,313.84	7%	$6,619.98	$42,927.41
1998	29%	$98,139.60	7%	$7,050.28	$49,977.69
1999	21%	$118,748.92	7%	$7,508.55	$57,486.24
2000	-9%	$107,942.76	7%	$7,996.61	$65,482.85
2001	-11%	$96,069.06	7%	$8,516.38	$73,999.23
2002	-22%	$74,933.87	7%	$9,069.95	$83,069.18
2003	28%	$95,915.35	7%	$9,659.50	$92,728.68
2004	11%	$106,466.04	7%	$10,287.36	$103,016.04
2005	5%	$111,789.34	7%	$10,956.04	$113,972.08
2006	16%	$129,675.63	7%	$11,668.19	$125,640.27
2007	6%	$136,807.79	7%	$12,426.62	$138,066.89
2008	-37%	$86,188.91	7%	$13,234.35	$151,301.23
2009	26%	$108,598.03	7%	$14,094.58	$165,395.81

Looking at this chart, its clear as day that Solar Power is a better investment than the S&P 500. In all fairness, this assumes that you only withdraw your gains from the S&P in the 20^th year. Remember too, that this chart assumes no capital gains tax, which is approximately 28% for returns in the stock market. There are no capital gains on your Solar Power system, and you in effect withdraw your return each year tax free!

Imaging for instance, that you took profits in the market in the second year. It’s a 31% gain! That is definitely something to be excited about. But, after capital gains tax, your profits amount to less than $4,000, which is less than your first year gains from your Solar Power System! There are other considerations to take into account as well. The Appraisal Institute values your system at $20 for every $1 your system saves per year. A Solar Power system is warranteed by our company for 10 years, and the panels are warranteed for 25 years. Systems last in excess of 30 years. The reasons are plentiful to consider solar. Now is an incredible time to get your feet wet and begin producing your own energy while making potentially the best investment you will ever make.

Article written by…

David James Bell

Solar Energy Consultant

Sunbeam Technologies

My First Blog Post

Hello! So...That was pretty simple. I have just created a blog for sunbeam solar technologies, my solar installation company. In the coming days, weeks, months, I hope to fill this thing with helpful tips, interesting little factoids, and everything solar to fill the curious minds around me with valuable info!