Disruptive Innovation: an innovation that helps create a new market and value network, and eventually goes on to displace an earlier technology.
You do not have solar power; it is unlikely you are reading this otherwise. You recognize there is a problem that needs to be solved; the cost of electricity. You recognize solar power as a possible solution, but are on the fence. Here's why.
You have no previous experience with solar power to fall back on. Even though solar power dates back to 1860 and NASA has trusted it to power billion-dollar spacecraft for decades, it is new to you. You maybe have a friend or neighbor who went solar and swears by it, "Best decision I ever made". Do you expect them to say anything less? People who make a large investment are unlikely to say they made a bad decision.
Because you are on the fence, you are going to wait and see. Wait a few years until a disruptive innovation makes solar power such a no-brainer that the decision is obvious. For now you feel safer continuing to pay out-of-control electricity rates. You are paralyzed, stagnating in one of the early phases of the purchasing process.
This thinking is flawed; very flawed. Solar power IS the disruptive innovation. Solar power is here to stay; it is already a no-brainer. While you wait, the solar panel system you could have bought is not working towards paying itself back. Wait 5 years until NASA releases some top-secret solar technology to the public? Well, you just paid your utility company $20,293.44 in the meantime. Here's how:
Let's say your electricity bill is currently $300 a month, or $3,600 a year. Utility companies increase their rates by roughly 6% a year, taking that into account, at the end of the 5th year you will have paid your utility company a total of $20,293.44.
What else could you buy for $20,293.44? How about a solar panel system? Once the system pays for itself, and you have a zero electricity bill, do you really care if a disruptive innovation comes around after? You are done; off the market. Could have waited 5 years for disruptive innovation that cuts the size of solar panels by 75%? Who cares. Could have waited 8 years to buy a system that pays for itself in half the time? Who cares. You don't care because it's all means to the same ends; free electricity, and you already have it.
The fact is solar power makes financial sense. The technology is there and the savings are real. We sell solar systems every day that dramatically lower or eliminate homeowner's electricity bills. The only difference between them and you is they took the step of calling a solar power company.
Going to continue sitting comfortably on the fence? Paying $20,293.44 over the next 5 years to your utility doesn't sound comfortable to me. Make your money work for you, not the other way around.
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