SYSTEM
COST
System Size & Cost
A residential solar electric system is typically sized to fit your budget and/or
to match your energy demand. System size depends upon your electric use and every
customer’s usage is different. Typical residential systems are sized between
3kW and 10kW.
After rebates and incentives, the cost for a 4 kW (utility-tied/battery-less
system) would drop from $30,000 to $4,500. Professionally installed solar energy
systems require an initial investment. This is an example of what a typical system
might cost (remember you may not need this much electricity or you may need more:
Typical 4 Kilowatt system. – Cost
Analysis
4 kilowatt system = 4,000 watts of power (at one moment in time).
We install these systems at approximately $7.25 per watt.
$7.25 to install x 4,000 watt
system
MINUS the NY State rebate of $1.75/watt
Cost after Rebate
MINUS the Federal Tax Credit
MINUS the State Tax Credit
Cost after Tax Credits |
|
=
$29,000
-$7,000
$22,000
-$8,700
-$5,000
$8,300
|
Solar Production
The following production numbers assume South facing panels, ideal tilt, and
Albany, NY weather conditions. Yearly production = 4,638 kWh x $0.16 (avg
price of electricity) = $742.08 Monthly production (average) = $61.84
Total Production
It is important to understand that since the year 2000 electricity has increased
an average of 5% per year. While the amount of electricity produced by the
system will remain constant year after year, the VALUE of the electricity produced
will probably increase each year. For example, if the value of electricity
generated from a 4 kW system is $742.08 this year, next year (if electricity
prices keep rising an average of 5%) that electricity will be worth $779.18.
The following chart shows the
cumulative value of a 4 kW system's production assuming
an average increase of 5% in electricity prices per
year.
Year
|
Value
of Electricity Produced
|
Value
of Electricity
per Month
|
Cumulative
Value
|
1
5
10
20
35
50
|
$742.08
$902.00
$1,151.21
$1,875.20
$3,898.40
$8,104.50
|
$61.84
$75.17
$95.93
$156.27
$324.87
$675.38
|
$742.08
$4,100.46
$9,333.80
$24,537.58
$67,024.89
$155,352.96
|
Financing
The Energy $mart Loan program allows NY residents to borrow up to $20,000 at 4% below the normal lending rate from participating lenders for grid tied photovoltaic systems.
Home Economics
According to the Appraisal Journal, for every $1 you save in energy costs you
add $20 to the value of your home. In the instance of a 4kW system which
saves $742 per year, that translates into $14,840 of added value to your
home.
*www.nyserda.org/Energy_Information/currentoutlook.asp
1971-2006 Nominal and Real Price Data for Motor Gasoline, Home Heating Oil,
Kerosene, Propane, Natural Gas, and Electricity. |
