Cost analysis for a sample system in Westchester and surrounding counties
In Westchester and surrounding counties, there are 3 components to the solar incentives that are available:
- NYSERDA rebate- $1.50/watt for first 50,000 watts
- Federal 30% Income tax credit – no cap
- 5 Year MACRS Depreciation - with 50% BONUS Depreciation for 2012
A typical 24kW solar energy system in these counties might look like this:
*ITC stands for Investment Tax Credit or Income Tax Credit
Rebates & Incentives pay for 60% of the cost!
Cash Analysis
A 24kW system would generate approx. 30,000 kWh/year or about $4,073 year.
- Cash- If you paid cash for this system, you would break even in Year 6 and would accrue savings of $161,000 over the system life.
- IRR of over 14.1%
- You can depreciate $102,000 over the first 5 years even though your net cost is only $48,000
- Levelized cost of Solar Over 25 Year System life
- $.03/kWh for Solar electric
- $.28/kWh for Utility-produced electric
- Utility Savings over system life of $193,651
Loan Analysis
If you financed your system at 6.25% for 9 years and put down 10% of the net or $4,800, you would get your down payment back after Year 1 and be cash positive from then on. You would save an average of $2,465/year during the loan period and over $6,500/year when your loan is paid off. You add value to your building and your system is exempt from any tax assessment.
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