Thoughts on Solar by Run on Sun's Founder & CEO, Jim Jenal

On Friday we wrote about how corporations are hoarding record amounts of cash - afraid to spend but gaining practically nothing in return.  On Saturday, the Los Angeles Times weighed in on the issue in a piece titled, Earning Zero and Feeling Good.  The article, by Tom Petruno, is worth the read and he reports that Americans now have $5.06 trillion in savings and money market accounts that earn less than 1% annual interest! Another $2.8 trillion is sitting in money market mutual funds with an average, annualized yield of a microscopic 0.04% - truly a return that would embarrass your old mattress.

But interest rates cannot remain that low for long, can they? According to at least one expert they not only can, they probably will - from the article:

Economist Edward Yardeni, head of Yardeni Research in Great Neck, N.Y., figures the Fed won’t move before 2012. Another 18 months of paltry cash returns? “It could really start to get very painful for those who don’t expect to get rich [off cash savings] but who do expect to earn some kind of return better than zero,” Yardeni said.

We feel that pain and are here to help! Investing in a solar power system for your home or business makes perfect sense, as in dollars and cents. According to the California Public Utility Commission, between 1970 and 2004 (last year in the study) the compound annual growth rate for electricity prices for large businesses was 7.2%.  With increases in fuel costs, tighter regulatory controls, and the need to update/replace aging infrastructure, even higher annual increases are likely.

But not when you own a solar power system.  For every kilowatt-hour of energy you avoid purchasing from your local utility, you insulate yourself from those rate increases.  Your cost of energy remains constant for the next 25 years while your savings increase year after year.  And there is no risk in this investment - solar power systems are so reliable that they require no routine maintenance more involved than directing a hose at the solar panels to keep them free of dirt and debris.

It is time to un-park that money and let it start working for you again.  A solar power system is a great way to turn that parked cash into long-term savings.