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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 |
|