Case Studies - Solar Photovoltaic (PV) Systems:

Gross Cost of the system

$5/watt

$25,000

Total Cost of the system, including hardware, permitting and installation costs

 Less Cash Rebate

$0.40/watt; maximum of $2,000

$2,000

Net cost of the system

$23,000

Some installers will only charge this price to the consumer

Less: Federal Investment Tax Credit

30% of net cost of system

$6,900

Less:  State Tax Credit

15% of net cost of system for a maximum of $1,000

$1,000

Net Cost to the system owner

$15,100

Net Cost to the owner is about 40% below the gross system cost

Works out to $3/watt

Cost of the system

$2.50/watt

$12,500

Only pay one time

Solar Lease:  

$40/month

2.5% annual escalation

$40/month; or $480 per year

First year savings of $480

Solar PPA:  

$0.8/watt

Annual escalation of 2.5%

Approx. $40/Month

 First year savings of $480

Solar Lease:  

$1,000 down payment

$40/month for 20 years

$40/month; or $480 per year

First year savings of $480;  

Savings increase as grid electricity prices increase every year

Solar PPA:  

$1,000 down payment

$0.8/watt; fixed rate for 20 years

Approx. $40/Month

First year savings of $480

Savings increase as grid electricity prices increase every year