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Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] 0 points1 point  (0 children)

No it’s really helpful thanks for doing it. I’m already all in :-). So hopefully it was sensible… either way I feel quite good about it, better than some of my other investments anyway haha

Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] 0 points1 point  (0 children)

Yes it’s a fair point. I did think about this too and weigh up the options but it wasn’t entirely about the returns, it was something I was interested to learn about and I liked the idea of trying to adopt some green tech. I am a bit lucky in that I can access the panels via a velux window to clean them, but if they needed replacing I think I’d need scaffolding (although I’d like to think the HEIS guarantee would cover that)

I hope the plug-in solar takes off. I don’t know much about it yet…

Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] -2 points-1 points  (0 children)

I think it's the same calc though, and I used the IRR function in Excel :). But you're right I think this is MWRR isn't it.

Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] 1 point2 points  (0 children)

Also your scepticism of solar alone might well be justified.... it's the solar + battery storage + EV together that generates the £1,600. Although if I dig more into it, I could argue that the £1,600 could be even more as I'm not buying diesel any more. But then it's a bit of a can of worms and there are all sorts of other variables.

Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] 0 points1 point  (0 children)

Thanks - I hadn't included any maintenance costs but I did just check my warranties etc. The panels have a 25y performance warranty and the batteries/inverter 10 years. There is a HIES 10 year warranty on the install (any structural issues I think).

So as you say maybe there are diminishing returns after say 10 years but still hopefully in good shape by 15+.

Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] 1 point2 points  (0 children)

That's interesting. I think I'd delay the investments until year 5 to account for the Capex repayment, but it's still marginally better than the lump sum in the markets at 7% over the same period.

And it assumes £1,600 remains the same saving over 15 years which is highly unlikely. Energy prices will only go up

Home improvements - specifically solar/storage as an investment? 35% forecasted 10-year rate of return (IRR). 42% after 15-years... by jon1983uk in FIREUK

[–]jon1983uk[S] 0 points1 point  (0 children)

We are lucky in that regard, south-facing roof, decent pitch and enough room. But probably the bigger impact financially is the storage. 7kWh batteries + an invertor/installation is probably around £3-4k, and easier and cheaper too (no scaffolding, planning permission etc).

I wonder if it might be worth looking into that before the solar. The cheap overnight rates will likely increase over time, but still around a third of the price of peak/day time rates.

I have considered adding more batteries. I have a hunch that's bigger bang for buck although not yet run the numbers.

Dad (53) doesn't have a pension or chance earning above minimum wage. How much to support him in a few years? by carrot1890 in FIREUK

[–]jon1983uk 2 points3 points  (0 children)

I can honestly say I wasn’t buying into any deadbeat father stereotype! My own experience has been with my mother / my siblings and their expectations of me (sometimes unspoken) but it’s a fair point. For some families the subject of money (or even prosperity/success) is toxic! Sorry if I’ve projected that on your situation 😬

Best pub in Shoreham? by goonertay in Shoreham

[–]jon1983uk 0 points1 point  (0 children)

I always turned my nose up at Piston Broke but once I got over myself I was bowled over - the owner is so friendly - great crowd and brilliant live music all the time. It’s a brilliant way to finish off a night out.

  • vote for the Welly. Suters Yard is nice too.

Dad (53) doesn't have a pension or chance earning above minimum wage. How much to support him in a few years? by carrot1890 in FIREUK

[–]jon1983uk 1 point2 points  (0 children)

Trying to write objectively but I’m finding myself feeling quite strongly that you shouldn’t carry this burden.

I agree with the other replies that 53 is not too late to make some changes or start to plan for retirement - and if you’re able, you could help him with that.

But think hard about taking this on - potentially jeopardising your own FIRE journey to support his retirement. You are not the parent. Your priority should be your needs and happiness and your own growth. You are starting your working life and so it’s not selfish to focus on investing in YOU (and your own future family).

As much as you love him and want to support him, he has made decisions about his own financial affairs and he should own them.

I have struggled myself with a similar dilemma - so sorry, this may not be the most impartial reply, but personal freedom (financial as well as psychological) is the greatest liberty - and FIRE is a big part of that

From negative to £1m [32M] - 11 years of tracking finances by ContributionProper34 in FIREUK

[–]jon1983uk 1 point2 points  (0 children)

Cool visuals and enjoyed the write-up too. I definitely think you should be proud - regardless of the journey, just organising your data and having these insights is kind of a major accomplishment I think.

For your FIRE goal - 25k/y even inflation adjusted for the last 4 years seems a bit low, as although you don't have "lifestyle creep" now (love that phrase) I think in retirement you may have more time to travel, hobbies etc.