buy something. better yet buy solar!

Those of us lucky enough to still have a job should be thinking about what we can do for those who don't. And no, I'm not asking you to donate to your local food bank (or mine, though it's not a bad idea). You can actually help the economy by being selfish..

The best thing you can do for the economy is go out and buy stuff you may or may not need. Spend some money, have fun, whatever. Every dollar you spend on something you may or may not need goes to someone who hopefully spends it again, on something they may or may not need, and it goes to someone else, and on and on it goes. This is how the economy works, and this is what keeps people employed. (it's also why money gets so dirty, but a credit card works just as well)

The problem with this system is that when too many people decide they "may not need" instead of "may need" stuff, and they hold onto their money, the whole system starts grinding to a halt. So quit being such a tightwad! Break out the wallet and spend some of that dough while we still have an economy.

preachy alert... about to get preachy...

Even better than spending it on something frivolous, go out and get solar panels for your house. That way you can help the economy while also helping yourself. Boost employment in the short run, while you get lower energy bills in the long run..

I heard the most amazing thing the other day -- the cost of solar panels is dropping! Now it's no surprise that prices drop when the economy slumps, but solar panels, really? I would think people would be itching to get these on their houses.

So as not to be a hypocrite, I'm getting solar panels and solar thermal (water heater) installed on my house. I'm lucky to live in Austin, home of the most generous solar energy credit in the country. But chances are you can get some kind of rebate where you live, and even if you can't, there's still the 30% federal tax credit that was recently extended (perhaps the only smart thing Congress has done all year).

So my neighbors ask me how much this is costing and how much I expect to save, etc. I really hate to bore you with numbers and whatnot, but since no one reads this blog anyway, here goes:

Numbers alert... here come the numbers...

I'm getting a 3kW solar photovoltaic system, the largest system that Austin Energy will subsidize. My roof is nearly perfect for it (south orientation, 27 degree tilt, no shade). So it should produce a little over 4000 kWh per year. At average utility rates (10.6 cents / kWh), that saves about $425 per year or $36 per month. It's about 30-40% of my typical electric bill.

So what's it costing? The system is a little over $20k. The maximum Austin Energy rebate is $13,500, so now we're talking $6.5k. I'll get 30% of that back on my federal income tax, so in the end I'm only coughing up around $4500! Yep, you read that right.

If you paid cash for this system, your return on investment (ROI) would be over 9% in the first year. Assuming energy prices keep going up (in the long run, they will), the ROI will only go higher. According to my calculations, depending on what energy prices do, the system could pay for itself in 8 to 10 years.

Don't have that kind of cash lying around? Neither do I. That's why I'm getting a low-interest solar loan from a local credit union. I'll be paying interest, so my ROI won't be quite as rosy. But when the loan's paid off, it will be nothing but gravy..

Where do I sign, you say? If you're in Austin, first step is to go to Austin Energy, read up about it, click apply, and get approved for the rebate.. it might take a little while.

While you're waiting, go buy something else..