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ECONOMIC
BENEFITS OF COMMERCIAL SOLAR POWER = kWh
Net metering enables commercial PV system owners to sell every kilowatt hour (kWh) they produce back to the utility companies at $0.39 per kWh, effectively offsetting or even eliminating current and future
power bills.
Paying for themselves through avoided costs at an estimated 20% rate of return (IRR), solar PV panels have warranties to provide 25 years of clean, dependable, on-site kWh directly from the sun.
The higher rates rise, the more you save. With
energy costs expected to rise 7% or
more per year, (PG&E rates rose 18% over
2003—2006); A solar PV system purchased today,
acts as a hedge against future rate spikes by locking-in the
system cost at today's amortized buydown.
|
30-kW
PV System Cash
Flow ¥
(average 2005 flat rates) |
Per
Month |
Year
1 |
Year
5 |
Year
10 |
Year
20 |
|
Average
Solar Electric Power Generation (kWh) |
4,250 |
51,000 |
51,000 |
51,000 |
51,000 |
|
Average
Utility Rate (per kWh) |
$0.25 |
$0.25 |
$0.25 |
$0.25 |
$0.25 |
|
Cumulative
Projected Savings |
$1,063 |
$12,756 |
$63,780 |
$127,560 |
$255,120 |
30-kW
PV System Cash
Flow ¥
(rates adjusted for 7% inflation) |
Year
1 |
Year
5 |
Year
10 |
Year
20 |
Average
Solar Electric Power Generation (kWh) |
51,000 |
51,000 |
51,000 |
51,000 |
Estimated
Utility Rate (per kWh) |
$0.25 |
$0.33 |
$0.46 |
$0.91 |
Estimated Savings
Per Month |
$1,063 |
$1,406 |
$1,972 |
$3,878 |
Estimated Savings
Per Year |
$12,756 |
$16,869 |
$23,659 |
$46,542 |
Cumulative
Projected Savings (with inflation) |
$12,756 |
$73,888 |
$177,687 |
$527,460 |
OPERATIONAL
BENEFITS OF COMMERCIAL SOLAR POWER
Solar
power systems are very low in maintenance and perform clean,
silent and safely without moving parts, pollution, or radiation.
Photovoltaics (PV) are a long proven and highly durable technology,
powering everything from calculators to Mars Rovers; typically
supplying 40 years or more of dependable electricity.
Solar
power systems never need refueling, also benefiting on-site
worker's environmental conditions, in place of combustion generators,
that produce harmful emissions and high decibel noise.
Combustion
generators such as; LNG (liquid natural gas),
propane, diesel and gasoline, incur exit fees as much as $.07
per kWh when sending excess power back to the utility grid. Solar
electric generators are exempt from exit fees.
Solar
PV output is at its highest during business hours, offsetting peak
demand charges that spike utility rates as much as $.36
kWh.
A solar PV
system stabilizes local power quality, configurable to secure
mission critical equipment from power outages resulting from
utility grid failures and disasters
LASTING
BENEFITS OF COMMERCIAL SOLAR PV
A
30-kW AC solar PV system; Annually reduces over 38
tons of air and ground pollution, and conserves 51,000
gallons of fresh water.²
|
30-kW
PV System—Pollution Reduced To
California Regional Environment ² |
|
Reduced
Carbon Dioxide
(CO2) Emissions |
Reduced
Ultra-Fine
Particulate Emissions |
Fresh
Water Conservation |
|
40
tons / annually *
1.6 million lbs / 20 years |
27
lbs / annually *
525 lbs / 20 years |
980
gallons / weekly **
51,000 gallons / annually |
|
CO2
reduction is equivalent to the sequestration of 13.4
acres of established forest per year; (CO2 contributes
to global warming) |
Nitrous
Oxides (NOx), Sulfurous Oxides (SOx), Mercury and Soot—cause
adverse health effects and acid rain |
Water
is used for cooling in centralized LNG (liquid natural
gas), coal and nuclear fired electric power generation |
|
*
Pollution reduced is equivalent to negating 308 gallons
of gasoline combustion per
week.
**
Water conserved fills 2.6
Olympic swimming pools over
the system's lifetime. |
COMMERCIAL
PV SYSTEM PRICING
Incentives
pay 70% or more for installing solar power systems on commercial properties.
Although
many factors affect the gross cost; If purchased today an
average commercial PV system costs
from $8.50 to $9.50 per watt before state and
federal incentives.
Factoring the $2,500 per kilowatt California Rebate and 30% Federal Investment Tax Credit, can reduce the estimated up-front cost to $4.20 per watt within the first year of activation.
Accelerated MARCS depreciation and interest deductions further cuts the net outlay of a commercial PV system
down to as little as $3 per watt.
COMMERCIAL
SOLAR ELECTRIC INCENTIVES
( valid 1-1-2007 to 12-31-2009 )
|
ACT SOON! Solar rebates drop 12% by incentive Step-3
California Solar Initiative (CSI) Rebate:
$2.50 per watt or $0.39 per kWh
|
Expected Performance Based Buydown
(EPBB) Rebate
One Rebate Payment:
( for systems up to 100-kW in size )
• $2,500
per installed kilowatt
estimate: 30-kW x $2,500 = $75,000 rebate.
|
or
Performance Based Incentive (PBI)
5 Years of Monthly Rebate Payments:
( for systems 10 kilowatts to 1 megawatt (MW) in size )
• $0.39 per kWh
estimate: $0.39 x 4,250 kWh = $1,657.50 monthly payment
|
|
State & Federal Tax Incentives for Solar PV
|
Federal
Solar Investment Tax Credit
( for systems of any size )
• 30%
of total system cost after rebate
|
• 5-year
MARCS Accelerated Depreciation
(
on commercial systems
of any size
) |
|
|
Estimated EPBB Rebate and Tax Incentives
for Commercial 30-kW Solar PV System ¥ |
|
Retail Price Before Incentives ( estimated $8.50 per watt ) |
$
255,000 |
|
EPBB
Rebate ( $2,500 per kW ) |
$
75,000 – |
|
Cash or Loan Amount = |
$
180,000 |
|
Federal
Solar Investment Tax Credit ( 30% after rebate ) |
$ 54,000 – |
|
MARCS
Depreciation in Year 1 |
$ 13,200 – |
|
Cash Position after Year-1 Incentives = |
$ 112,800 |
|
MARCS
Depreciation Total in Years 2 to 6 |
$ 44,000 – |
|
Estimated
Cost Reduction After Net Incentives ( 73% )
= |
$ 68,800 |
Contact Us for more detailed information on Solar Electric Incentives, or visit the CSI website: http://www.gosolarcalifornia.ca.gov/.
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