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Cost Of Solar

Cost Of Solar. Joe Musgrave Summer 2009. Sticker Price $80,000 Would you pay $20,000 for it? How about if you never had to pay for fuel?. How much do solar energy systems cost?

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Cost Of Solar

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  1. Cost Of Solar Joe Musgrave Summer 2009

  2. Sticker Price $80,000 Would you pay $20,000 for it? How about if you never had to pay for fuel?

  3. How much do solar energy systems cost? For a solar electric system, the cost depends on the size of the system and the ease of installation, with an average cost range of $8,000–$11,000 for each kilowatt (kW) of capacity. However, incentives and tax credits can cover up to 70 percent of the cost. How does a solar energy system increase a home’s value? A solar system has the combined benefit of reducing your energy costs and may add value to your home. The added value is up to 20 times your annual energy cost savings, according to The Appraisal Journal. At today’s electricity and gas prices, a solar water heating system or a 2-kilowatt solar electric system could each save the average family of four $175 or more a year. Based on these savings, each system could add up to $3,000 to the value of a home. COST

  4. Cost of Installation Based on $8 per watt installed cost

  5. Cost Examples: The prices listed below are examples only. Solar electric system—2,000 watts Pacific Power customer* $20,000 Total installed cost*** - $4,000 Energy Trust incentive ($2.00/watt) $16,000 Amount homeowner pays contractor - $6,000 Oregon tax credit ($3.00/watt, $6,000 cap) - $4,800 Federal tax credit (30% of $16,000) $5,200 Final cost to homeowner ***Solar electric systems costs vary and depend on size. www.energytrust.org

  6. Tax Credits and Incentives Solar electric Tax credits Oregon: $3.00 per watt, up to $6,000 $1,500 claimed per year over 4 years Federal: 30% of installed cost less cash incentives Energy Trust incentive: Up to $20,000, based on rated capacity of solar panels in wattsDC PGE customers*: $2.25 per wattDC Pacific Power customers*: $2.00 per wattDC www.energytrust.org

  7. Oregon Incentives

  8. What size system is most cost effective in Oregon? • The most cost effective size is a 3Kw system. This will give you the maximum Oregon tax credit (6k).

  9. Federal Incentives • Solar-electric property • There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.   • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.   • The home served by the system does not have to be the taxpayer’s principal residence.   •   A taxpayer may claim a credit of 30% of qualified expenditures thru 2016.

  10. Federal Incentive • The federal incentive has come a long way. Prior to 2009 it had a cap at $2000. There is currently no cap.

  11. Energy Trust of Oregon Energy Trust offers the following incentives for residential solar electric systems: www.energytrust.org

  12. Finding a Contractor • Here is a link to find a contractor. • http://www.energytrust.org/solar/ta_list/ • Ensure your contractor is approved before moving forward.

  13. How do I pay for it? • Greenstreet Lending • http://www.greenstreetloan.com/ • 1-866-790-2121 • Home Equity Loan — borrow from $5,000 to $50,000, with a term up to 15 years. • Unsecured Home Improvement Loan — borrow from $1,000 to $50,000, with a term up to 5 years.

  14. How long is the payback • If you don’t count the value of the the solar panels the payback for a 4kW system would be about 27 years. • $10800(price after all incentives /$400(yearly savings at $.10 a kWh) is 27 years. • But we aren’t doing this just to save money are we.

  15. What is the value of the system? • It ranges from 18% of the true cost of the system to 20x the yearly savings. • Considering this value what is the length of time for return on investment? • Using the same 4kW system let’s take the value of the system into consideration. • ($10800-$8000(value of system))/ 400(yearly savings) • This would give us a 7 year payback

  16. Getting Creative • What can you do if you are a renter? • Get your landlord excited about solar • Do the research for them

  17. For Landlords • Solar will make your property more desirable • Profit by offering all utilities included while being net 0 due to Solar • Increase your property value

  18. References http://www.greenstreetloan.com/ www.energytrust.org www.dsireusa.org/incentives http://www.oregon.gov/ENERGY/RENEW/Solar/

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