Very quickly, this term describes the hidden cost of going with 1 option over another.
For example, the upfront cost of solar power might be $10,000 for a standard residential installation. But after that, you don’t have any more electricity expenses.
However, if you decide NOT to go solar, the opportunity cost of this decision is quite high. You end up paying month after month of increasingly large utility bills. Over the next 40 years, those expenses could easily add up to $48,000 (almost certainly more than this amount).
In other words, the cost of NOT going solar is $48,000+.
But this is only the beginning of your troubles. There are other opportunity costs associated with not installing solar panels.
Other Opportunity Costs of Solar Power (and NOT Going Solar)
The personal savings you forfeit is only the tip of the iceberg. There are other types of opportunity costs associated with NOT going solar.
1. Continued reliance on grid electricity is terrible for the environment. This means worse air and water for you, your kids, and your grandkids. You can calculate these disadvantages monetarily if you want (i.e. higher health care bills and more taxes), but the environment is truly priceless.
2. You also need to factor in all of the jobs and economic activity that solar helps to create. The sun is a local resource that creates new green job opportunities right here in San Diego. Contrast this with fossil fuel that sends jobs away and helps to finance countries that hate us.
3. Speaking of countries that hate us. Solar makes us much safer since we don’t have to rely on imported oil. This means less terrorism. Fewer military engagements. Lower taxes. And more soldiers who get to come home to their families.
4. And we can’t forget about the ability to make money from your solar investment. Not only can you sell excess electricity to the local utility at a profit, but you can also trade green credits on the open market like stocks.
By not going solar today, you forfeit these great environmental, economic, and security benefits.
Think the Cost of Solar Power Is Too High? Think Again
Solar is affordable. In fact, it’s a steal when you factor in all of the awesome incentives that are still available.
In addition, you don’t have to pay the full amount upfront.
Many solar customers take out low interest loans. They use their monthly electricity bill savings to pay back these loans over time. And in most cases, those repayments are less than what they already pay to the utility company.
In other words, they enjoy instant savings – starting on Day 1.
That these solar customers are also helping to clean the planet, create new green jobs, and stimulate the economy – this is just the icing on the cake.
Solar really is that awesome.
To learn more about solar power (including costs and opportunity costs) – contact us today!