Is the Appropriate Color of Solar – Green or Yellow? Week 6

Conclusion:

The current “solar farm” system can be summarized: Taxpayers pay higher taxes to subsidize “solar farms” so that as consumers they can pay higher rates for electricity receiving low quality electricity (called “dirty” within the industry). In short, this becomes another market place distorted by government and special interests.

Our contacts within the solar energy industry expect solar farms of today to be seen as the equivalent of dinosaurs in the future. We have been told there are numerous new technologies that will replace solar panels. Ultimately every house and building will be a solar energy collector.

But the current status of technology in the solar industry is to use solar panels, build solar farms, and depend on heavy government subsidies. The transition that will occur means many participants will get hurt, some very seriously.

If you decide you want to participate, our recommendation is that you sell your land, not lease it. Then you can do a tax deferred exchange into another investment property.

It is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.