sort of an add on to the CA thread

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wwhitney

Senior Member
Location
Berkeley, CA
Occupation
Retired
ggunn said:
If I cannot afford to do something, loaning me money will not make any difference.
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That's not my understanding of finance. There are lots of situations where something makes sense to do, but the upfront cost is the limiting factor. E.g. improvements that pay for themselves over time. Or capital improvements that raise the value of a property accordingly--offer an interest free loan, and there's no accounting downside to making the improvement.

Now if there's an upfront cost, and an ongoing cost rather than ongoing savings, then I obviously agree.

Cheers, Wayne
 
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ggunn

PE (Electrical), NABCEP certified
Location
Austin, TX, USA
Occupation
Consulting Electrical Engineer - Photovoltaic Systems
wwhitney said:
That's not my understanding of finance. There are lots of situations where something makes sense to do, but the upfront cost is the limiting factor. E.g. improvements that pay for themselves over time. Or capital improvements that raise the value of a property accordingly--offer an interest free loan, and there's no accounting downside to making the improvement.

Now if there's an upfront cost, and an ongoing cost rather than ongoing savings, then I obviously agree.

Cheers, Wayne
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What I mean is that when I am considering an expense I look at the total outlay as well as cash flow issues. I have decided that, for example, although I would enjoy having one I cannot afford to buy a $200k Lamborghini, and there is no realistic financing arrangement that would make any difference in my decision. 100 year financing, maybe. :D
 
gadfly56

gadfly56

Senior Member
Location
New Jersey
Occupation
Professional Engineer, Fire & Life Safety
wwhitney said:
Interesting, thanks for the pointer. Sound like they are looking at a variety of options: requiring electric conversion when a home is sold or a major remodel is done, or offering incentives for conversions. Loans were mentioned in the context of "people who want to electrify their homes but can’t afford to".

I don't see any mention of a proposal that by such and such a date, everyone has to do a conversion and pay for it themselves or be sanctioned.

Cheers, Wayne
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So far, yes. I'm guessing that they're trying to see if they'll get tossed out on their collective ears running this up the flag pole. And I absolutely do not believe the claims from the consultant regarding dollar savings, unless they are folding in some sort of carbon dioxide tariff. I see references to the consultant's report, but I've looked in the web site for Menlo Park and can't find the actual report, although there are numerous references to it. If I find anything, I'll report back.
 
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