How does solar pencil out? Efficiency of solar equipment has risen sharply and prices have dropped. At the same time, local electricity rates are expected to rise at a rate of 2.2%/year. This takes much of the risk out of solar conversion and creates a high-tech win-win:
Scenario for a 7.5 kw system at $3.00 per watt:
Net outflows
Net inflows
Gross cost: equipment, supplies, permits, labor
$22,875
One time Federal tax credit of 30%
30%= $6862
Net cost of installation*
$16,013
Est. annual energy production payment from utility co. until 2022
$950 - 4,600
Avoided energy costs
$500
Total annual positives
=$1,450 - 5,100
*(resulting in a net cost of $2.14/watt)
Thus your system will have paid for itself within 6-8 years (depending upon your specific utility company policies. After that, it is all profit!
