ECONOMIC BENEFITS OF RESIDENTIAL SOLAR POWER = kWh
Net metering enables residential PV system owners to sell every kilowatt hour (kWh) they produce back to the utility companies, effectively offsetting or even eliminating current and future power bills.
Paying for themselves through energy savings at an estimated 8-12% 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.
Example: 5-kW Solar PV System—reliably powers a 2,500 square foot home, producing an estimated 8,880 kWh of electric power per year. ¥
|
5-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) |
740 |
8,880 |
8,880 |
8,880 |
8,880 |
|
Average Utility Rate (per kWh) |
$0.18 |
$0.18 |
$0.18 |
$0.18 |
$0.18 |
|
Cumulative Projected Savings |
$133 |
$1,596 |
$7,980 |
$15,960 |
$31,920 |
|
5-kW PV System Cash Flow ¥
(adjusted for 7% inflation) |
Year 1 |
Year 5 |
Year 10 |
Year 20 |
|
Average Solar Electric Power Generation (kWh) |
8,880 |
8,880 |
8,880 |
8,880 |
|
Average Utility Rate (per kWh) |
$0.18 |
$0.23 |
$0.33 |
$0.64 |
|
Projected Savings Per Month |
$133 |
$172 |
$242 |
$475 |
|
Cumulative Projected Savings (with inflation) |
$1,596 |
$9,084 |
$21,804 |
$64,668 |
RELIABILITY BENEFITS OF 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 improving local environmental conditions, in place of combustion generators, that produce harmful emissions and high decibel noise.
Solar PV output is at it's highest during midday, offsetting 'high-tier' charges that spike utility rates as much as $.36 kWh, increasing the savings of solar electric power generation.
A solar PV system can also protect your home's critical lighting and appliances from power outages resulting from utility grid failures and disasters, with optional zero-maintenance gel battery packs.
LASTING BENEFITS OF RESIDENTIAL SOLAR POWER
|
5-kW PV System—Pollution Reduced To California Regional Environment ² |
|
Reduced Carbon Dioxide
(CO2) Emissions |
Reduced Toxic
Particulate Emissions |
Fresh Water Conservation |
|
6.4 tons / annually *
256,825 lbs / 20 years |
4.2 lbs / annually *
84.1 lbs / 20 years |
8,880 gallons / annually **
51,365 gallons / 20 years |
|
CO2 reduction is equivalent to the sequestration of 2.1 acres of established forest per year; CO2 contributes to global warming |
Nitrous Oxides (NOx), Sulphur Oxides (SOx), Mercury and Soot—cause adverse health effects and acid rain |
Water is used for cooling in centralized liquid natural gas (LNG), coal and nuclear fired electric power generation |
|
* Pollution reduced is equivalent to negating 49 gallons of gasoline combustion every week.
** Water conserved fills 40 residential swimming pools over the system's lifetime. |
RESIDENTIAL PV SYSTEM PRICING
Incentives pay homeowners 30% or more for installing solar power systems!
Although many factors affect the gross price; if purchased today a residential PV system retails for around $9 to $11 per installed watt before state & federal incentives.
Factoring the $2,500 per kilowatt California Rebate and $2,000 Federal Investment Tax Credit, the net cost can be reduced to as little as $6.50 per watt, within the first year of system activation.
Home offices and financing programs qualify for additional tax incentives in the form of depreciation and interest deductions.
RESIDENTIAL 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) EPBB Rebate:
$2,500 per kilowatt (kW)
( drops to $200 per kW by CSI end )
example: 3-kW system = $7,500 rebate. |
Federal Investment Tax Credit (ITC)
• 30% of total system cost, after rebate ( $2,000 cap )
( for systems installed before 12- 31-2008 )
|
| • 5-year MARCS Accelerated Depreciation ¥
( for home-business and rental property owners ) |
|
|
Estimated Incentives for Residential 3-kW (3,000 watt) Solar PV System ¥ |
|
Retail Price Before Incentives ( estimated $9.50 per watt ) |
$ 27,000 |
|
CSI Rebate ( $2,500 per kW ) |
$ 7,500 – |
|
Sub Total After Rebate = |
$ 19,500 |
|
Federal Investment Tax Credit ( 30% or $2,000 ) |
$ 2,000 – |
|
Estimated Cost After Net Incentives ( 35% reduction ) = |
$ 17,500 |
Contact Us for more detailed information on Solar Electric Incentives, or visit the CSI website: http://www.gosolarcalifornia.ca.gov/.
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