03 Jun Why I Chose The Solar Industry
50% of people in the solar industry are in it to make a difference. In it to do their part in moving the world into the “renewable” future. To those in this group I envy your selflessness and I tip my hat to you.
The other 50% don’t do it for the environment. They’re not closet coal lovers, they just are in-different. And there is nothing wrong with that. I say that because I am a part of this group.
I still feel I joined the solar industry for a noble cause though. Just a different one.
When you borrow money to spend, simply because you don’t have enough income, it’s bad finance.
In other words, “If you can’t afford it don’t buy it!”
Now if you use borrowed money to make more money, then it’s good. As long as you make more profit than the interest you pay.
For example, if a farmer borrows money to buy a tractor. And that tractor helps them harvest more crops. Then it’s good finance. Unless he goes broke…
But this is what finance should be used for. Finance is supposed to be used to re-allocate resources so investors can create wealth, and in-turn grow the economy.
Nowadays most finance is not really for investment. It’s for consumption.
Don’t get me wrong, it’s never black and white. There are some grey areas. Like financing a car under the business that you will use to drive to meetings.
It’s just that, that car is a decked out BMW, with heated leather seats, LCD screens in the headrest and a fat ass turbo. Hey! How else is a guy supposed to get from point A to point B?
The increased spending as a result of this “bad finance” still ends up growing the economy but not necessarily in the right way.
The people who offer this type of finance aren’t necessarily bad people. A lot of them are my mates. But it’s not very fulfilling when your job is to convince people to spend money they don’t have, on items they probably shouldn’t buy.
So why am I so into financing commercial solar? Because it’s good finance.
When you finance solar (the right way) you save more on your electricity bill then you pay on your finance.
The whole “if you can’t afford it, don’t buy it” saying doesn’t work in this space.
If you don’t have the money, as long as the deal is cash flow positive (real figures here, not bogus fluffed up figures) that means “Doing Nothing” compared to “Financing Solar” is the WRONG decision.
Or on the other hand, if a business owner already has money sitting in their business. They should allocate their excess capital to whatever will get them the most return on their money.
If they are a business owner, you’d think the best ROI they can achieve will be investing in the business itself. Then they can make an investment on the side (solar) using borrowed money that’s easier to get then a standard business loan.
I know it sounds like a sales pitch. Well….it is a sales pitch. But it’s one that I’m proud to stand behind. Moving the world into the “renewable” future is just an added bonus.