|reply to dogma |
Re: I've gone and done it ... solar install
said by dogma:The depreciation scam should be ignored. Since depreciation has no relation to the actual life of an asset it is a scam, plain and simple. Your "fully depreciated" solar (or any other asset) won't magically stop working once their depreciation is $0. They also won't have a value of $0 at the end of the depreciation period. Conversely it's possible that your asset will have to be declared a total loss well before its depreciated value.
I am still working up my NPV forecast but I would now like to mention in all fairness, Solar has a low ROI when viewed as a straight investment against something similar in risk like a CD (but a better ROI non the less) primarily because the principal [the Solar panels infrastructure] depreciates to zero over time in a strict financial sense. Whereas the principal [cash] of a CD as a lesser depreciation
It's also a scam for the law too. You loose something to theft, fire, vandalism, etc and you get "depreciated value". Good luck finding something at that price in the same condition.
So, yes depreciation should be left out.