What will my solar installation cost?

How much will you spend for electricity in the next 15 years?

Installing a solar system in your home is beneficial for the planet and your wallet. There is really nothing negative about a solar installation except the up-front cost. However, it may not take as long as you think to recoup those costs. With reduced electric bills, tax credits and solar renewable energy credits, you can have your system paid for and earning money for you in approximately 5-6 years!

The Federal Investment Tax Credit (ITC) means great things for home and business owners interested in offsetting electric costs with solar power for their energy needs. Today, the ITC pays for 30% of a solar installation cost. That means, you can expect thousands of $ in residential and commercial tax credit savings from the Federal Government.

As an example of the cost and benefits of solar electric, a half the maximum rebated size homeowner 5 Kilo watt (5,000 watts) system is summarized below. (Designed for a home with a $880/year electric bill- larger systems are available). At today’s electricity price, this power production has an annual value of about $962 or more than $22,400 in 15 years (with electric costs escalating approximately 6% each year) and it can also earn about 6 Solar Renewable Energy Credits (SRECs) per year that you will be able to sell on the open market. SRECs are now selling to the electric utilities for over $650 each and can be projected to have a value of $40,000 over 15 years.

Fifteen Year Pro Forma:

Initial system cost after 30% Federal Tax Credit $ (22,200)
Projected fifteen year electric production value $ 22,414
Projected fifteen year SREC revenue $ 46,019
Fifteen year net gain (income on investment by 2024) $ 46,231

First Year Pro Forma:

Initial typical system cost $ (31,700)
2011 30% Federal Investment Tax Credit $ 9,500
First 12 months electric power value $ 960
First 12 months SREC revenue (assumed $645/mWh) $ 3,764
First 12 months net expenditure: $ (17,476)

Send us your electric bill and information and we can develop a custom pro forma for you.