What is my payback period for installing a Solar PV system?
The answer to this question depends upon the following: • Escalating cost of electrical energy in your area; • Net-metering program for your area; • Federal investment tax credit, currently 30% for business and residential; • Rebates or Grants that may be offered at the state or Federal level; • Net Present Value of adding an energy producing asset to your home or business; • Local real estate market demand for sustainable or “green” features; For each of our clients, we provide you with a financial analysis for your project that is in a form that can be reviewed with a trusted financial adviser. Two “Real World” examples: • Residential 3 KW System 12- 15 Year Payback Period • Farm 6.8 KW System 10 Year Payback Period, with Internal Rate of Return 9.1% Using the following assumptions for a 3.0 KW Solar PV Residential System and a traditional payback analysis approach: • System cost of $24,000; • Annual energy production of 3,937 KWH for a grid tied system • Electric rate of $0.10KWH; •
