I’ve shared with some folks that Air Flow is going solar. The responses have been interesting, including:
“I thought solar was a 12-year payback.”
“Solar panels only last a few years and then they need to be replaced.”
“Did the consultant figure there are cloudy days?”
“That’s cool. Good for you! Now go hug a tree.”
The decision-making process was easy. Wes Marquardt from Madison College had 5,750 panels installed on the Traux campus roof. Wes doesn’t mind sharing his opinion about products or suppliers, and I trust his opinion. He had a lot of nice things to say about Sunvest and his project. The college bought a lot more panels, so the unit price was better. Other than that, similar.
According to the proposal, it’s a 4.7-year payback. That includes a Focus on Energy Grant (which we will receive), a 30% tax incentive from the US government, and full depreciation of the solar purchase in the first year.
Sunvest took the full credit for the 1st year depreciation in their payback analysis, but everything gets depreciated at different rates. So, it may be nice from a cash standpoint but debatable for the 4.7-year payback.
So what? I’m no mathematician. Even if the depreciation calculation is onerous, call it a 6-year payback on the investment. I’ll take it. It’s passive and a 16.7% return.
Here’s what you get to do: look at the proposal.
(Sunvest begrudgingly agreed to have their proposal floating on the internet. I told them they’d get more benefit in marketing versus a disadvantage from competitors learning how they do what they do. Only 4 people read my posts anyway.)
Would you have pulled the trigger?
Candidly, I’m an impulsive decision maker. It drives some folks nuts around here. But this one seemed easy for me. Go get your guns and shoot some holes in my decision! Or better yet, agree with the decision and get some solar on your building.
Until next time,
Tom Gelin
Air Flow Inc.
8355 West Bradley Road
Milwaukee, WI 53223
414-351-1999
