We started talking more about our quest for solar panels last night. Our local energy company does some pretty huge rebates when you install panels, and that’s a great big plus. We started contemplating the possibility of financing the panels in order to start using them sooner, but eventually decided to continue on our current path of saving the money first. I’m not promising that this won’t change down the road a ways, but for now, we’re sticking with plan A.
Our solar panel fund is at ING. So the money is very liquid and works as a back up emergency fund. Let’s say that a year from now we have some emergency that costs more than we have in our emergency fund. We could take money out of the solar panel fund to cover it. And if we come upon hard times and can’t afford to put $300/month into the solar panel fund, we can just stop putting money into it for a while. But if we finance the solar panels, we’re stuck. We have to keep making payments until they’re paid off – regardless of our financial situation at the time. And since we’d be making payments to them instead of to our ING account, the money could not be used for anything else in the event of an emergency. Yes, we’d have the benefits of the solar panels right now, and would likely not have our $100+ monthly electricity bill, but there are a lot of drawbacks. We don’t want to be in debt is pretty much the long and short of it. We didn’t mind financing our kitchen remodel through Home Depot, because the interest rate is zero as long as we pay it off by next February, and we only charged $2000. We had the money (and still do) to pay it all off at once, but we figured we might as well let the money work for us in savings accounts over the year, and just pay the Home Depot account off little by little. But in the case of solar panels, we do not have the money in savings to pay for them now. We would truly be going into debt to do it, and it’s just not something we’re comfortable with. So for now we’re going to continue saving for them. We might start with a solar hot water system, which is much cheaper than setting up solar for the whole house, so it would give us some instant gratification. I’ll keep you posted!
Kristen's Raw says
Hi!
Great post, I love that you’re saving for those. Cool cool cool!
frugalwench says
I crave solar panels! Here in Florida, I could eventually be off the grid if I could afford them. By the time I can, they will be much cheaper, though. Right now, I’m saving for rain barrels. Found some in an adjoining town for $50 each. I’d need about 10.
FrugalBabe says
Thanks Kristen!
FW – I hope you get your rain barrels soon… can you buy one at a time, or are they selling the whole lot together? I wish we could do something like that, but we’ve had 3 inches of precipitation so far this year (seriously). In Florida they’ll probably be a bit more of a benefit :)
Jenny says
Very wise decision.
How does the solar hot water system work?
Frugal, Freebies and Deals says
My hubby would love to have solar so much- best of luck!!
Elegant rain barrels says
Just be sure to find rain barrels which offer a mesh mosquito guard, and also look for barrels which have an overflow valve function to allow the excess water to flow out of the rain barrel and away from your foundation. Hooking a drip hose to this valve is a great way to give your garden or flower bed a constant source of moisture.
bleh bleh says
The folks at MIT have just announced this breakthrough in solar energy to the tune of 4 times greater efficiency. The bonus is it will likely be able to be incorporated into the window panes of your home. Too cool!
http://www.technewsworld.com/story/Colorful-Glass-Delivers-Massive-Solar-Energy-Boost-63770.html
Workshop Shed says
Apparently in a few years the UK will be just like the South of France so perhaps even here solar heating could be worth while. I’m hoping to start small with a solar powered fan for the workshop.