Is borrowing to save $ on heating wise?
I've been wondering if this is wise. If I spend $7,000 and convert my current heating system to Solar is that a wise investment? It will take me 3 years to pay it off and they'll have accued $600 in interest but I've had a Solar analyses done of my house Solar should cut down my heating bill by 60%, and my hot water bill by 90% for a savings of around $1,300/year. If oil costs more next year (most likely) it will save more than that. I've also looked at incentives, etc.
I'm leaning it's a wise investment to borrow money to save money IF you currently have no debt on your credit cards AND you calculate how much interest will be accrued, AND the savings will justify the cost. Sort of like, it's better to charge up $1,000 for insulation on your credit card if it saves you $800/year in heating as the interest they can collect will not exceed your savings over the years you stay at the house. I plan on living in my house for 10 years and rent it afterward so it will continue to net me $.
Please no "My friend had solar in his house 30 years ago and the units clouded and were useless." The 80's were a time the industry got saturated with those without experience making their own home-made panels and installed them. There were countless cases of faulty panels or improper installations and those fly-by-night idiots nearly killed Solar's chance. Today, Solar panels are extreme quality, don't fog, made to last 25-30 years, and designed in a factory. In-laws have a Solar house built 25 years and the same solar panels and system, only needing one new pump so far still provide 95% of their heating/hot water needs. If theirs can last 25+ years, mine can last 25+ years.