Costs and Incentives for a Sample Solar PV System
In New Jersey, there are 3 components to the solar incentives that are available:
- NJ OCE REIP rebate- $.75/watt for first 7,500 watts
- Federal 30% Income tax credit – no cap
- SREC - $655 per 1,000kWh generated in 2011
A typical 4kW solar energy system in these counties might look like this:
*ITC stands for Investment Tax Credit or Income Tax Credit
So why does a system in NJ make sense? Because by selling your SREC’s, this system will generate $4,244 in Year 1 ($3,144 in SREC’s, along with $1,100 of electricity).
Cash Analysis
A 4kW system would generate approx. 5,200 kWh/year or about $1,040/year.
- If you paid cash for this system, you would break even by Year 4 and would accrue savings of $67,000 over the system life.
- System will generate over $52,375 in utility savings and $39,965 in SREC sales over the system life.
- Internal Rate of Return (IRR) of over 24%
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 $1,100 in electricity in the first year, here is a comparison of buying utility electricity versus financing with our no-money down loan.
You save 34% on your energy bill alone and when coupled with your SREC sales you make money from Day 1!
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 pay about half as much per month as you are now paying for electricity, the interest would be tax deductible, and your savings would grow to $XX,XXX over 25 years.
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