Solar delivers predictable, tax-advantaged returns from day one. The S&P 500 is a 50-year coin flip. See for yourself.
Every thin blue line on that chart is a real person who invested $100,000 in the S&P 500 in a different year. Some got lucky. Some lost money for a decade. With solar, there are no blue lines — just one predictable orange path.
Here's what happens when you invest $100,000 and reinvest all cash flows (yield + tax benefits) into additional solar assets. Each reinvestment generates its own ITC + depreciation, creating a powerful compounding effect.
| Year | Event | Yield Income | Tax Benefits | Reinvested | Total Portfolio |
|---|---|---|---|---|---|
| 0 | Initial investment | — | — | — | $100,000 |
| 1 | Yield + tax benefits reinvested | +$6,000 | +$75,000 | +$81,000 | $181,000 |
| 2 | Compounding begins | +$11,077 | +$60,750 | +$71,827 | $252,827 |
| 3 | Reinvestment cascade | +$15,782 | +$53,870 | +$69,653 | $322,480 |
| 5 | Growth continues | +$25,670 | +$54,580 | +$80,250 | $475,502 |
| 10 | Long-term compounding | +$68,298 | +$113,555 | +$181,853 | $1,134,329 |
Understanding how solar compares to traditional equity investments.
It's not about beating the S&P's best years — it's about eliminating its worst ones. The S&P 500 has returned between −37% and +38% in any given year. Solar delivers a fixed first-year return of ~75% (via tax credits and depreciation) followed by a steady 6% yield. While the S&P might outperform over a 20-year horizon, solar gives you certainty and immediate cash back that no stock index can match.
With solar, your biggest risk factors are equipment performance and contractor reliability — both of which we mitigate through our vetted contractor network and monitoring platform. The tax benefits (ITC and depreciation) are codified in federal law and claimed in year one. With the S&P 500, your risk is pure market volatility — you have zero control over returns, and a recession in your first few years can devastate decade-long performance.
Absolutely. Many of our investors use solar as the stable, tax-advantaged foundation of their portfolio while maintaining stock market exposure for growth. The key insight is that solar and equities are uncorrelated — solar returns don't depend on market conditions. This makes solar an excellent diversification tool, especially for high-income earners looking to reduce their tax burden.
When you invest $100,000 in a solar asset, you receive a 40% Investment Tax Credit ($40,000) plus 100% bonus depreciation on 80% of the asset cost. At a ~44% marginal tax rate, that depreciation saves you ~$35,000. Combined, you get ~$75,000 back in year one — a 75% return on your original investment before the asset generates its first dollar of income.
Important Disclosures: This material is for informational purposes only and does not constitute tax, legal, or investment advice. S&P 500 historical returns are total returns including dividends, sourced from publicly available market data (1975–2024). Past performance of the S&P 500 is not indicative of future results. Solar investment returns depend on individual tax circumstances, including marginal tax rate and filing status. Consult your tax professional before making investment decisions.
IRS references: Investment Tax Credit (IRC §48), Domestic Content Bonus (IRC §45X), Bonus Depreciation (IRC §168(k)).
