- Brokerage Only (After-Tax)
- $89,093
- Solar + Reinvest (After-Tax)
- $180,135
- Advantage (Solar + Reinvest)
- $91,042
- Total Tax-Free Savings
- $87,525
Assumptions
25-Year Comparison
How It Works
Scenario A: Brokerage Only
Instead of buying solar panels, invest the $19,568 system cost into a brokerage account. The lump sum grows at the selected annual market return over 25 years. When you sell, capital gains tax applies to the growth (total value minus original investment).
Scenario B: Solar + Reinvest Savings
Buy solar panels and invest the monthly savings (electricity + EV gas savings) into a brokerage account. Savings are tax-free (they're reduced expenses, not income) and grow with energy inflation. EV gas savings are included since solar powers home charging, replacing gas costs. Each month's contribution compounds over time. Capital gains tax only applies to the investment growth above your total contributions.
Key Insight
Solar and EV savings are effectively tax-free income — you're spending less on electricity and gas rather than earning taxable investment returns. This means more of your savings flow directly into wealth accumulation. The brokerage-only scenario faces capital gains tax on all growth, while the solar scenario only pays tax on brokerage gains above the contributed savings.