What makes Solar Smart Business? In this article we will not touch on the environmental, social or marketing benefits of solar. We will focus solely on the solar financial incentives available in New Jersey.
In a recent survey of consumers considering solar energy, an amazing 73% of all surveyed said that confusion regarding incentives was the reason for delaying their purchase.
Array Sunsystems, New Jersey’s (NJ) premier solar installer, has attempted to provide some clarity by putting together a simple return on investment spreadsheet with sample pricing for your review. This Solar ROI report should give a clear understanding of pricing, incentives, and payback period.
Residential Solar System:
For residential solar projects there are three primary incentives, the 30% federal tax credit, SREC income and, of course, reduction or elimination of your electric bill.
| Average Monthly Usage:
This is the amount of electricity you consume on an average month. It is determined by your input or approximated by your electricity divided by the cost per kilowatt hour in your area. |
1158KwH |
| Solar Electric System Size:
This is the system size we recommend for your business. It is determined by the amount of electricity we are trying to generate as well as available space. |
10.00kw |
| Estimated Cost of this Sample Solar System:
This is the estimated cost of your project. It is based on a price of $5.95 per watt installed. |
$59,500.00 |
| Federal Tax Credit:
30 percent of overall system cost including labor |
$17,850.00 |
| Average Monthly Savings:
Amount of Electricity your system will produce each month in dollars. |
$130.00 |
| Solar Renewable Energy Certificate Income:
Amount of money per month you will receive for your SREC’s |
$700.00 |
| Total Monthly Revenue:
This is the amount of money your system will produce on average each month. It is the Average monthly savings plus the SREC value |
$830.00 |
| Return on Investment First Year:
Total System Payback Time: |
$27,810.00
4.18 years |
Commercial Solar System Sample:
For commercial solar projects there are four primary incentives, the 30% federal tax credit, 100% bonus accelerated depreciation in the 1st year, SREC income and, of course, reduction or elimination of your electric bill.
| Average Monthly Production:
This is the amount of electricity your system will produce on average each month. It is determined by system size and solar radiance.(4.6 hrs per day in our area) |
17,380kwH |
| System Size:
This is the system size we recommend for your home. It is determined by the amount of electricity we are trying to generate as well as available space. |
150kw |
| Estimated Cost:
This is the estimated cost of your project. It is based on a price of $4.25 per watt installed. |
$637,500.00 |
| Federal Tax Credit:
30 percent of overall system cost including labor |
$191,250.00 |
| Average Monthly Savings:
Amount of Electricity your system will produce each month in dollars. |
$1,945.00 |
| Solar Renewable Energy Certificate Income:
Amount of money per month you will receive for your SREC’s |
$10,400.00 |
| Total Monthly Revenue:
This is the amount of money your system will produce on average each month. It is the Average monthly savings plus the SREC value |
$11,345.00 |
| Return on Investment First Year( includes MACRS100%yr1)
Total System Payback Time: |
$517,046.00
2.06yrs |
Thanks, but what I was interested in a hot water system (I already have a PV system).