Solar Power's Great, but Is It Worth It?

Will you be moving: What your plans are for the house where you will be installing the solar power system can have a huge effect on whether it makes financial sense.

If you will be moving in a few years, you won't be able to recover the initial costs of the system. If you aren't planning to move at all, then you must calculate any return based solely on the reduced charges. If you are planning to move after a number of years, not only will the solar power system decrease your electricity bill, it will also increase the value of your house.

Will you need a loan: Due to the high up-front costs, many people have to take out a loan of some type (cheap loans are another perk that many utilities offer for installing solar power systems). The cost of the interest on the loan also needs to be calculated as to whether it makes financial sense.

You can find loan rates and more at BankingMyWay.com.

Environmental impact: While the positive environmental impact is not a financial calculation, many people choose solar power for this reason.

If you look at adopting solar power as a "good cause" that will help the environment, you may want to add that into the calculation of whether the return on investment is worthwhile.

For example, a 5% compounded interest return over 20 years may not be the highest return for your money, but may be considered a great return when coupled with the positive environmental implications.