The economics of solar are really pretty simple: over the long term, a solar power generation system can provide an attractive return on your investment. Our team at Icon Solar will work with you to combine flexible financing options with government incentives to find maximum savings as you invest in energy independence.
EVERY HOME IS UNIQUE
Of course, every home and installation presents its own unique solar power generation characteristics. We can only determine a price and projected savings for your home after consulting with you about your solar objectives and completing a site evaluation of your home.
However, we created the chart below to give you an idea of what investing in solar looks like. It captures projects costs and savings associated with three different sizes of solar power generation systems proposed for a typical home.
The cost for each system assumes:
- Full turnkey installation
- All permits
- Interconnection fees
- System qualification for SREC sales
- All equipment and mounting hardware
- Flashed penetrations
- Lifetime system monitoring via the internet
- All related wiring hardware and labor required for the installation
These are all the things we’ll walk you through during your solar installation process.
For these scenarios, we assume that a typical home has average monthly electrical usage of 1,500 kilowatt hours (kwh); and that the homeowner pays $0.12 per kwh to the utility company; and the home solar system is mounted on the homeowner’s south facing roof. Based upon these assumptions, here are three hypothetical systems.
|Average Monthly Electric Bill before Solar||$180.00||$180.00||$180.00|
|Percentage of Electricity Offset by Solar||99%||49%||33%|
|Turn-Key System Price||$36,109.64||$20,590.58||$14,771.79|
|30% Federal Tax Credit||$10,832.89||$6,177.17||$4,431.54|
|Net Installed Price||$25,276.75||$14,413.41||$10,340.25|
|Estimated 1st Year Savings*||$2,215.23||$1,107.62||$736.74|
|Increase in Home Value**||$44,304.60||$22,152.40||$14,734.80|
|25 Year Benefit of Solar^||$132,811||$66,406||$44,234|
|Average Monthly Savings from Solar||$184.60||$92.30||$61.40|
|Average Monthly Electric Costs After Solar Savings||($4.60)||$87.70||$118.60|
|Monthly Finance Payment||$180.94||$103.18||$74.02|
|Projected Average Monthly Installment Payment Net of Savings^^||($3.66)||$10.88||$12.63|
For more information on how much you can actually save using solar, check out this blog post.
*Assumes an average electric rate of $0.12 per Kwh, with the potential savings increasing based upon state specific incentives such as the sale of SRECs. A sale price of $5 per SREC is assumed. SREC sale prices vary from state to state and based upon market conditions. Accordingly, the sale price per SREC could be higher or lower than the price used for purposes of this illustration.
**Assumes a $20 increase in home value for every $1 of annual electric savings, using the projected first year electric savings. The amount of increase in home value is based upon a study of the effect of home energy efficiency on the value of a home published in the October, 1999 issue of The Appraisal Journal. This assumption is consistent with a study released in July, 2011 by the National Bureau of Economic Research finding a 3.5% increase in home value for homes with solar power generation systems and a study released in April, 2011 by the U. S. Department of Energy’s Lawrence Berkeley National Laboratory finding an increase in home values attributable to solar power generation systems of between $3.90 and $6.40 per watt of the DC rated capacity of the system.
^ Assumes an average electric rate of $0.12 per Kwh with an average annual increase of 4.40% and a sale price of $5 per SREC through 2028. SREC sale prices vary from state to state and based upon market conditions. Accordingly, the sale price per SREC could be higher or lower than the price used for purposes of this illustration. The electric savings and SREC sales revenues are added to the projected increase in home value to arrive at the projected 25 year benefit of solar.
^^Payment amount assumes 20 year, 5.99% unsecured financing for 70% of the system price less the average monthly savings. Financing options are subject to credit approval. Call for qualification details.