Here’s a great comment I’d like to share with you all. One of our readers, Matt, was able to give us a complete breakdown of not only his experience with solar but its full fiscal benefits realized by owning the system.
To my surprise I was amazed at how fast the system paid itself off and now is purely generating profit. This is a Maryland example, but California has many of the same incentives. If the below scenario seems intriguing, we encourage you to get in contact today with a verified solar installer from cooler planet.
First off, I do not believe in Global Warming but I do believe in saving money and natural resources.
I too did question the costs and figures with installing solar. Here are my real world numbers that show I will make my money back in 3 years with my PV system.
I installed a $33,600 3.68kWh PV system.
I received a $10,000 Federal Tax Credit (Courtesy of the 1st Stimulus Package Oct 2008)
I received a $9,200 Maryland State Grant (Taxed by the Federal Government at 28% – $6,624)
I receive a $38.18 Maryland State Tax Credit (3 year total ~$114)
I save $655 in electricity per year (3 year total $1,965)
I earn $2,700 in SRECS (3 year total after tax)
Total return after three years – $21,403In addition, there is a formula to compute the value added to your home. Obviously, a $33,000 system does not add 33K to the value of your home. Most home improvement projects like a remodeled kitchen or bathroom return 80% – 85%. As per a 1990’s survey of home prices with solar and without solar – they determined that for every one dollar saved in electricity it adds $20 to the value of your home. Therefore, saving $655 per year in electricity x $20 adds $13,100 to the value of your home.
Added value to my home – $13,100
Therefore, after three years – I will have saved $21,403 and gained $13,100 in home value = $34,503
If you do not calculate the increase in home value the breakeven point is 13 years. Please keep in mind that Federal and States offers are constantly changing grants and tax breaks. (For example – Maryland halved their Grant in 2009.)
In my case getting solar was a no brainer. My ROI is 7-8% per year – better than Bank CD’s or the volatile stock market. I would suggest that each person research their state grants to see if solar is worth it. You may just be surprised.
{ 1 comment… read it below or add one }
Matts figures are interesting, but off a bit. He saved $21,400 but he’s still out $12,200 ($33,600 – $21,400). The value to the property of $13,100 just about washes the $12,200 he still owes on the system – $13,100 – $12,200 = +$900, not $34,500. Still an excellent deal!
And as for his comment about global warming… perhaps he just hasn’t been paying attention…