ROI For Your Business

This is provided for your information and we believe it is accurate, please consult a tax professional.

See return on investment examples for New Hampshire and Vermont.

New Hampshire Commercial Example

This example maximizes the NH Commercial Rebate of $0.80/WP up to a maximum of $50,000, applies the 30% federal tax credit, and 50% depreciation of the cost of the equipment in the first year for a company with a marginal tax rate of 35%. The company's cost of electricity including transmission and other fees is $0.15/KWH, inflating at an industry accepted rate of 5% per year. The system generates about 68,750 KWH per year saving the company about $10,300 in electricity costs in the first year. The initial investment is paid off in the sixth year and and then generates about $370,000 in savings over the balance of the warranty period and will continue to generate electricity and $ savings for decades.

E
KWP
62.5
Customer's Current Cost/KW
$0.15
X
System Cost
$281,250
Utility Rate Inflation
5%
A
Fed. Tax Credit
-$84,375
Tons of CO2 Avoided During Warranty Period
1,380 Tons
M
NH Rebate*
-$50,000
   
P
Net Cost
$146,875
   
L
 
*Rebates need to be verified for the current rates and availability.
E
 
**The electricity produced is subject to annual weather variations.

Year
Initial Cash Investment
Utility Electric Rate
**Annual Energy Production (KWH)
Annual Avoided Cost of Energy
State/Utility Rebate
Income Tax on Rebate
Federal Tax Credit
100% Bonus MACRS Depreciation
Cash Flow
1
-$281,250
$0.15
68,750
$10,313
$50,000
-$17,500
$84,375
$50,203
-$103,859
2
$0.16
68,406
$10,774
$13,388
-$79,698
3
$0.17
68,064
$11,256
$8,033
-$60,409
4
$0.17
67,724
$11,760
$4,820
-$43,830
5
$0.18
67,385
$12,286
$4,820
-$26,724
6
$0.19
67,048
$12,836
$2,410
-$11,479
7
$0.20
66,713
$13,410
$1,932
8
$0.21
66,380
$14,010
$15,942
9
$0.22
66,048
$14,637
$30,579
10
$0.23
65,717
$15,292
$45,872
11
$0.24
65,389
$15,977
$61,848
12
$0.26
65,062
$16,692
$78,540
13
$0.27
64,737
$17,439
$95,979
14
$0.28
64,413
$18,219
$114,198
15
$0.30
64,091
$19,034
$133,232
16
$0.31
63,770
$19,886
$153,118
17
$0.33
63,452
$20,776
$173,894
18
$0.34
63,134
$21,706
$195,600
19
$0.36
62,819
$22,461
$218,061
20
$0.37
62,504
$23,243
$241,304
21
$0.39
62,192
$24,052
$265,355
22
$0.40
61,881
$24,889
$290,244
23
$0.42
61,572
$25,755
$315,999
24
$0.44
61,264
$26,651
$342,650
25
$0.45
60,957
$27,578
$370,228
TOTAL
-$285,000
1,619,472
$450,931
$50,000
-$17,500
$84,375
$83,672
$370,228

Vermont Commercial Example

This example is eligible for the VT Commercial Rebate of ($0.60/KWP up to a maximum rebate of $36,000) $36,000, applies the 30% federal tax credit, and 50% depreciation of the cost of the equipment in the first year for a company with a marginal tax rate of 35%. The company's cost of electricity including transmission and other fees is $0.15/KWH, inflating at an industry accepted rate of 5% per year. The system generates about 66,000 KWH per year saving the company about $9,900 in electricity costs in the first year. The company's grid connected utility pays an incentive credit of $0.06/kwh produced or about $3,960/year. The initial investment is paid off in the fifth year and then generates about $393,000 in savings over the balance of the warranty period and will continue to generate electricity and $ savings for decades.

E
KWP
60
Customer's Current Cost/KW
$0.15
X
System Cost
$270,000
Utility Rate Inflation
5.0%
A
Fed. Tax Credit
-$81,000
Tons of CO2 Avoided During Warranty Period
1,326 Tons
M
VT Rebate*
-$36,000
   
P
Net Cost
$153,000
   
L
 
*Rebates need to be verified for the current rates and availability.
E
 
**The electricity produced is subject to annual weather variations.

Year
Initial Cash Investment
Utility Electric Rate
**Annual Energy Production (KWH)
Annual Avoided Cost of Energy
State/Utility Rebate
Income Tax on Rebate
Federal Tax Credit
100%
Bonus MACRS Depreciation
Green Mnt. Power Incentive
Cash Flow
1
-$270,000
$0.15
66,000
$9,900
$36,000
-$12,600
$81,000
$48,195
$3,960
-$103,545
2
$0.16
65,670
$10,343
$12,852
$3,940
-$76,410
3
$0.17
65,342
$10,806
$7,711
$3,920
-$53,972
4
$0.17
65,015
$11,289
$4,627
$3,901
-$34,155
5
$0.18
64,690
$11,795
$4,627
$3,881
-$13,852
6
$0.19
64,366
$12,322
$2,313
$3,862
$4,645
7
$0.20
64,045
$12,874
$3,843
$21,362
8
$0.21
63,724
$13,450
$3,823
$38,635
9
$0.22
63,406
$14,052
$3,804
$56,492
10
$0.23
63,089
$14,681
$3,785
$74,958
11
$0.24
62,773
$15,338
$90,295
12
$0.26
62,459
$16,024
$106,319
13
$0.27
62,147
$16,741
$123,060
14
$0.28
61,836
$17,490
$140,551
15
$0.30
61,527
$18,273
$158,824
16
$0.31
61,220
$19,091
$177,914
17
$0.33
60,913
$19,945
$197,859
18
$0.34
60,609
$20,838
$218,697
19
$0.36
60,306
$21,770
$240,467
20
$0.38
60,004
$22,744
$263,211
21
$0.40
59,704
$23,762
$286,973
22
$0.42
59,406
$24,825
$311,798
23
$0.44
59,109
$25,936
$337,734
24
$0.46
58,813
$27,097
$364,831
25
$0.48
58,519
$28,310
$393,141
TOTAL
-$270,000
1,554,693
$439,695
$36,000
-$12,600
$81,000
$80,325
$38,721
$393,141


Let us help you maximize your roofing asset!

 

AC Hathorne:
252 Avenue C., Williston, VT 05495
Vermont Roofing:
1325 Harwood Hill, Bennington, VT 05201  
118 Spruce Street, Rutland, VT 05701
The Melanson Company:
353 West Street, Keene, NH 03431
5 Ferry Road, Bow, NH 03304

site copyright ©2012, Solar Source  •  web site design: sykes associates, keene, nh 03431