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 4.2 kW
(utility-tied/battery-less system) would drop from
$37,800 to $14,000. 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 5 Kilowatt system. – Cost
Analysis
4.2 kilowatt system = 4,200 watts of power (at one moment
in time).
We install these systems at approximately $9.00 per watt.
$9.00 to install x 4,200 watt system
MINUS the NY State rebate of $4/watt
Cost after Rebate
MINUS the Federal Tax Credit
MINUS the State Tax Credit
Cost after Tax Credits |
|
= $37,800
- $16,800
$21,000
-$2,000
-$5,000
$14,000 |
Solar Production
The following production numbers assume South facing,
ideal sun, tilt and angle conditions.
Yearly production = 4,869 kWh x $0.16 (avg price of
electricity) = $779.04
Monthly production (average) = $65.00
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 4.2 kW system is $779.04 this year, next year (if electricity
prices keep rising an average of 5%) that electricity
will be worth $818.00.
The following chart shows the cumulative
value of a 4.2 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
15
20
25
|
$779.04
$946.93
$1,208.55
$1,542.45
$1,968.60
$2,512.48
|
$65.00
$358.72
$816.56
$1,400.88
$2,146.64
$3,098.44
|
$779.04
$4,304.69
$9,798.68
$16,810.56
$25,759.70
$37,181.32
|
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 4.2kW system which
saves $779 per year, that translates into $15,580
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. |
