Costs and Incentives for a Sample Solar PV System
In Long Island, there are 3 components to the solar incentives that are available:
- LIPA Solar Pioneer rebate – $1.75/watt for first 7,000 watts
- Federal 30% Income tax credit – no cap
- NY State 25% Income tax credit - $5,000 cap
A solar system is also exempt from local property taxes!
A typical 4kW solar energy system on Long Island might look like this:
*ITC stands for Investment Tax Credit or Income Tax Credit
Rebates & Incentives pay for 67% of the cost
Cash Analysis
A 4kW system would generate approx. 5,000 kWh/year or about $1,000 year.
- Cash- If you paid cash for this system, you would break even in Year 8 and would accrue savings of $31,000 over the system life.
- IRR of over 13%
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Levelized cost of Solar Over 25 Year System life
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$.14/kWh for Solar electric
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$.41/kWh for Utility-produced electric
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No Money Down Finance Option
Working with our banking partners, Sunrise is pleased to offer a no-money down financing option to qualified customers. If you finance a solar system using this offering, you will typically pay less for your loan than you’ve been paying for your electric bill. You’re adding value to your home while not adding to your tax assessment. And the interest on your loan is tax deductible. After your loan is paid off, you get years of free, renewable energy.
Using the 4kW system above which saves about $1,000 in electricity in the first year, here is a comparison of buying utility electricity versus using our no-money down loan.
You save 43% on your energy bill in the first year alone and that savings rises every year as utility rates increase! Over the system life you save $37,400
Financing with a Mortgage Re-Finance
If you refinanced your home at current rates for 30 years and took an extra $9,000 to pay for the system you would be paying less than half as much per month as you are now paying for electricity, the interest would be tax deductible, and your savings would grow to $44,956 over 25 years.
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