1000% Return on Investment with Solar Energy?!?
Wait, that sounds WAY too AMAZING to be TRUE!!!
Lets take a look at the words “return on investment”.
Definition of Return (in the context of investing): “a profit from an investment”
Definition of Investment: “the action or process of investing money for profit or material result”
So, this means that a return on investment is the profit made from the money that you put into the investment.
Here are some typical examples of investments:
- $1000 G.I.C. @ 0.5% for 5 years.
- Profit on $1000 = $5/year
- Return on investment = 0.5%/year or 5/1000 = 0.005 = 0.5%
- $1000 RRSP @ 2.5% for 10 years.
- Profit on $1000 = $25/year
- Return on investment = 2.5%/year or 25/1000 = 0.025 = 2.5%
So these investments are easy to understand, but what if your investment was $0?
If your investment was $0 and you made any amount of profit on the system, then your return on investment would actually be infinity%. You have beaten the laws of physics and gained something from nothing.
Lets say for the sake of argument that you invested something, anything towards your solar project. Now we can easily calculate the return on investment with the following example:
- Solar Investment with $120 down payment and the remaining amount financed
- Solar Income per year = $4800
- Financing Cost per year = $3600
- Net Profit (return) = $4800 – $3600 = $1200
- Return on investment = 1000%/year or 1200/120 = 10.0 = 1000%
And that, my friends, is how you make 1000% Return on Investment by investing in Solar Energy!!!!