Don’t Take My Green Tax Incentives! Part II-Solar
After I posted about potentially canning my un-green bathroom remodel and using the money budgeted for it to purchase solar panels I looked for information on solar tax credits to help me decide if I could afford them.
Solar water heater and solar panel tax credits expire December 31, 2008. Apparently there is a bill to extend them which has passed the House but not the Senate. Come on, fellas! I need more time!
If you are feeling the pressure to rush out and get solar panels like me, checkout the Database of State Incentives for Renewables & Efficiency (DSIRE). Click on your state to see a comprehensive list of green incentives.
Here’s another great site with a tool that will estimate the cost of a solar installation as well as what it will save you and how well your area can utilize solar energy. I contacted my electric company to get the total kilowatts I used over the last 12 months, along with the my average bill for Summer, Spring, Winter and Fall so that I could find out what a proper system would cost me (and save me).
Here’s what they recommended for my house based on the information I input into their estimator.
|
ESTIMATED SYSTEM SIZE |
|
|
The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 3.60 kW and 5.40 kW of peak power. This estimate assumes the mid-point of this range. |
|
|
Solar Rating: |
Good |
|
Solar System Capacity Required: |
4.50 kW of peak power (DC watts) |
|
Roof Area Needed: |
450 sq-ft |
|
ESTIMATED SYSTEM COST |
|
|
This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 4.50 kW peak power system will cost between $32,400 and $48,600. This estimate assumes the mid-point of this cost range. |
|
|
Assumed Installation cost: |
$40,500
Top of Form assuming $/watt Bottom of Form |
|
Expected Commonwealth Edison Co Utility Rebate: |
($ 0 ) |
|
Expected IL State Rebate |
($ 10,000 ) |
|
IL State Tax Credit/Deduction |
($ 0 ) |
|
Federal Tax Credit: |
($ 2,000 ) |
|
Income Tax on Tax Credit: |
$ 0 |
|
YOUR ESTIMATED NET COST: |
$ 28,500 |
|
Monthly Payment (6.5% apr, 30 years): |
$ 180 |
|
SAVINGS & BENEFITS |
|
|
Increase in Property Value: |
$9,020 |
|
Exempt from Property Tax: |
YES |
|
Accelerated (5 yr) Depreciation: |
No |
|
First-year Utility Savings: |
$451 |
|
Average Monthly Utility Savings: |
$63 |
|
Average Annual Utility Savings: |
$757 |
|
25-year Utility Savings: |
$18,925 |
|
Internal Rate of Return (IRR) of system: |
-1.0% to 4.0% |
|
Return on Investment (ROI): |
158% |
|
Return on Investment (ROI): |
500% |
|
Internal Rate of Return (IRR): |
-1.0% - 4.0% |
|
Years to Break even: |
15 years |
|
Years to Break even: |
23 years |
|
Greenhouse Gas (CO2) Saved: |
113.0 tons |
{ 0 comments… add one now }
Kick things off by filling out the form below ↓
Leave a Comment