Forget real estate. Solar is a much better investment!

The merits of investing in real estate are unquestionable. If you know what you are doing, you can join the wealthy class by conservatively investing in real estate over the years. The trouble with real estate investments these days is that you can hardly find opportunities that provide higher than a 6-7% yield.

Now let’s compare this with a solar investment.  In an average location in the US, your solar asset should be producing 1.5 kWhs of energy for each watt of solar system. Assuming that your solar asset cost you $3.00/w to build, and that the value of your electricity is 20 cents per kWh, you should be generating 30 cents(1.5 kWh x 20 ¢/kWh) for each $3.00 invested.

That is a 10% cash on cash yield before the 30% investment tax credit and before leverage.  Not so bad!…