SOLAR ECONOMICS - RESIDENTIAL

There are a number of factors that make the addition of a solar electric system to your home such a favorable investment.

Rebates

New Jersey Clean Energy Program (NJCEP) has implemented the most generous solar rebate rates in the country.

The State will pay $3.50 per watt, which usually amounts to about 43% of the installed cost of your PV system, including all equipment, installation and connection charges.

In most cases, we have special arrangements for the State rebate to be accepted in lieu of payment of this portion of the purchase price.

Federal Tax Credit

The cost of your system is further reduced by a Federal Tax Credit of 30% of your out of pocket expense (up to a maximum of $2,000). Please consult your tax advisor.

Savings on your Electric Bill

Your PV system will be providing a large portion of the electricity you use in your home. This will vary over the course of the year; it will be greater in summer and somewhat lower during the winter months.

First, you will not be paying for your electricity needs that are met by the system.

Secondly, you will be credited for any electricity generated in excess of your needs.

Under the net metering rules, your electric meter will spin backwards as the surplus is automatically fed into the grid. (This is averaged out on an annual basis). In this way, if you’re away from home during the day, and when you are on vacation, you will not be wasting the electricity produced by your solar system.

Your savings will begin at the top rate that your utility is charging for electricity.

Solar Renewable Energy Credits (S-RECs)

Renewable Energy Credits, sometimes referred to as Green Tags, recognize the environmental contribution your clean energy system is making.

Each time your solar electric system produces 1,000kWh of electricity, a Solar Renewable Energy Certificate (or S-REC) is issued. These certificates are tradable for cash.

From the first month your system is operational, it will be generating this additional source of income.

New Jersey’s Renewable Portfolio Standard (RPS) requires that the State’s electricity suppliers provide a certain proportion of their electricity from solar power. They must use the S-REC program to meet this requirement.

This creates an open market for the certificates.

An engineering estimate will be used to calculate your monthly S-REC generation. We can handle the sale of your certificates on your behalf, paying you the net proceeds; alternatively, you can use the on-line marketplace to trade the S-RECs yourself.

Maintenance Costs

Your solar system has no moving parts and maintenance costs over the life of the system are minimal. It will reliably produce no-cost or low-cost electricity for many, many years. The solar panels have a 25-year manufacturer’s warranty and are expected to last up to 40 years and beyond. The inverter has an expected life of 15 or more years; the warranty for the inverter is typically 5 years. Expanded maintenance plans are also available.

Increased Value of your Home

Installing a solar electric system increases the resale value of your home. A detailed study by the National Appraisal Institute estimated that your home’s value would increase by $20 for every $1 reduction in your annual utility bills. This ratio can only be expected to increase as energy costs continue to rise.

Financing your System

• Optional 12 Month Interest Free Credit
  If you opt to purchase your system through one of our partners, The Home Depot. Please note that The Home Depot pricing may differ from that illustrated herein, your purchase may be financed, interest-free, for the first 12 months.
• After the initial 12-month interest-free period, the tax-deductible interest on a home equity loan will in many cases be less than the savings and income generated by your solar system each month.
• Incorporating a solar electric system into a new home, and including it in the home mortgage, may very well produce positive cash flow from day one.

Let’s look at an example of a typical residential solar electric system (6 kW). Residential systems sized up to 10 kW are eligible to the NJ rebate. Systems sized larger may still receive full SREC Credit.

Initial investment

The system will begin to provide the following returns immediately

Assuming financing with a home equity loan

Monthly interest payments

These calculations have assumed current electricity rates. Expected rate increases will steadily improve the return on your investment.