3 Reasons Why Millennials are Investing in Solar Energy
Millennials know that solar is the biggest thing to happen since avocado toast and craft beer. Investment opportunities have shifted from the traditional route of stocks and bonds to more sustainable investing. According to a 2017 survey by Morgan Stanley, millennials (those born between 1981 and 1996) are twice as likely to invest in sustainable investments (1). It is estimated that more than half of millennial consumers will invest in solar energy within the next 5 years (2). Solar makes sense for millennials since there is little upfront cost, ease of transferability, and because it is a sustainable investment.
1. Millenials invest in solar energy because there is little upfront cost.
Gone are the days where you walk out of high school with a full time job making a liveable wage. According to Forbes, Millennials earn 20% less income than their parents (3) . Millennials are hit with the double whammy of paying off significant student debt and trying to enter the housing market. With the average age of first time homeowners in Canada now being 36 years old and retirement being 65, it can feel like there is no time to save. Government efficiency rebates are providing more and more incentives to support green energy. With these rebates many people can get their solar systems installed with minimal up-front costs. Your solar system basically pays for itself and you reap more financial benefits over time without having to invest any more money.
2.Millennials invest in solar because it does not lock them in.
Just like you would ask your mortgage broker what would happen if you decide to move, it makes sense to ask what would happen to your solar system. If you move homes, your system stays with the house and gets transferred to the new homeowner. The next question you might have is how does solar impact a home’s value? Solar powered homes are growing in popularity and value as much as electric vehicles. Solar panels are like a pool, in-law suite or that floral wallpaper that your grandparents had. Although they may not be for everyone, there is a large population of people that value it and its potential. Lower electric bills and a decreased carbon footprint can be a big selling feature to the right buyer.
3. Millennials invest in solar because green is the new black.
Millennials have grown up in a more environmentally conscious world and have grown up learning to define their personal and environmental values. There is now a sense of social responsibility we have to consider when conducting our daily activities. These initiatives are everywhere-banning single use plastics, electric cars, meatless Mondays etc. It is estimated that if our society keeps burning fossil fuels at our current rate, we are expected to start running out of resources in the 2060’s (4). Millennials know the importance of renewable energy sources. Warren Buffet says it best with his quote on value investing "Price is what you pay. Value is what you get." Solar energy provides a value that extends far beyond its price tag.
Millennials are fighting for our future and investing in solar is just one of the ways they are doing this. Investing in solar is a smart choice because of its low upfront costs, transferability and its environmental impact. Beat the rush and sign up for your free solar assessment to find out exactly how solar will work for your home.
References:
Stanley, M. (2017) Sustainable Signals New Data from the Individual Investor. Retrieved from https://www.morganstanley.com/pub/content/dam/msdotcom/ideas/sustainable-signals/pdf/Sustainable_Signals_Whitepaper.pdf
Accenture Consulting (2016). Retrieved from https://newsroom.accenture.com/news/millennials-strong-interest-in-new-products-and-services-will-drive-the-most-future-value-for-energy-utilities-but-they-are-much-more-demanding-consumers-finds-research-from-accenture.htm
Worstall, T. (2017) -Forbes. Retrieved from https://www.forbes.com/sites/timworstall/2017/01/14/millennials-earn-20-less-than-boomers-not-as-important-as-you-might-think/?sh=36bb44af1168
Hannah Ritchie (2017) - "Fossil Fuels". Published online at OurWorldInData.org. Retrieved from: https://ourworldindata.org/fossil-fuels