Solar Source – Solar payback on investment, Vermont and New Hampshire residential

New Hampshire Residential Example

The following example is based on an average size home located in New Hampshire. The 4.0 kilowatt power array is sized to fit on the southern facing roof of the house and is grid tied. The system produces about 67% of the total electrical requirements of the home and cost $20,000 to design, install, and commission resulting in a $5.00/WP cost. The federal tax credit is 30% of the cost of the system and the NH solar rebate is $1.25 per watt installed up to $4,500 or 50% of the system cost, which ever is less, resulting in a net system cost of $9,500. The system generates about 4,800 KWH per year and at the electrical cost of $0.16/KWH saves the home owner $768/year. As the retail cost of electricity goes up so do the annual savings. The initial investment is payed off in about 10 years and then it generates over $23,500 in savings over the balance of the warranty period and will continue to generate electricity and $ savings for decades.

Investment Analysis Summary - New Hampshire

Current Electric Cost/KWH

$0.16

System Size KWP

4.0

Utility Rate Inflation

5.0%

System Cost

$20,000

Annual Electricity Used By the Home

7,200 KWH

Fed Tax Credit 30%

-$6,000

Annual Electricity Produced By PV System

4,800 KWH

NH Rebate*

-$4,500

Percentage of Total Electricity PV Produced

67%

Net Cost

$9,500

Electrical $ Savings**

$ 768/Year 1

Tons of CO2 Avoided During Warranty Period

96 Tons

5-2012

*Rebates need to be verified for the current rates and availability.

**The electricity produced is subject to annual weather variations.

Vermont Residential Example

The following example is based on an average size home located in Vermont. The 4.0 kilowatt power array is sized to fit on the southern facing roof of the house. The system produces about 67% of the total electrical requirements of the home. The system cost $20,000 to design, install, and commission resulting in a $5.00/WP cost. The federal tax credit is 30% of the cost of the system and the VT solar rebate is $0.60 per watt installed resulting in a net system cost of $11,400. The system generates about 4,800 KWH per year and at the electrical cost of $0.16/KWH saves the home owner $768/year. As the retail cost of electricity goes up so do the annual savings. The utility provides a credit incentive of $0.06/KWH produced or about $288/year. The initial investment is payed off in about 9 years then it generates over $25,400 in savings over the balance of the warranty period and will continue to generate electricity and $ savings for decades.

Investment Analysis Summary - Vermont