How Much does Solar Cost?
We heard solar was "expensive" but is now much "cheaper" but had no understanding of what to really expect for a system.
Gianluca said his pricing was typically $5.50 per installed watt. Our Texas power company offered rebates in the past of $1.20 per watt - if you use a licensed installer. So, that would net out to $4.30 per installed watt. The federal tax credit is 30% of all qualified expenses (after the rebate). A tax credit is not a deduction - it actually reduces the amount of tax owed (assuming you have enough income to pay more taxes than the credit). You can rollover the credit to future years, but perhaps not after 2016.
Here's what our project cost:
A large part of our costs were the patio and structure to hold the panels. If you take out the patio expense, the panel costs are $6001.
Our system should generate 9335 kWh of electricity per year. If we were to pay our current electric rate of $.12/kwh, it would generate $1,120 of power annually. The payback on the panels alone would be 5.36 years.
Since we also plan to run an electric car off the panels, we estimate saving an additional $250/month in fuel costs.
A recent study estimated the value of solar panels installed on a home would add $15,000 to the listing price. However, home appraisers and lenders are not yet sure how to value "green" features added to homes.
We figure we will have a great covered patio that shades the west side of our home from the summer heat gain. As we sit under our panels, it will make us smile, watching the "pennies falling from heaven" (quote from our builder, Scott Finney).
Gianluca said his pricing was typically $5.50 per installed watt. Our Texas power company offered rebates in the past of $1.20 per watt - if you use a licensed installer. So, that would net out to $4.30 per installed watt. The federal tax credit is 30% of all qualified expenses (after the rebate). A tax credit is not a deduction - it actually reduces the amount of tax owed (assuming you have enough income to pay more taxes than the credit). You can rollover the credit to future years, but perhaps not after 2016.
Here's what our project cost:
| $19,948.70 | 5.580kw system (panels, inverter, web-based monitoring system, permits, design/engineering, installation) |
| $10,639.44 | 14 x 30 Concrete patio and pergola structure for mounting the panels (engineered to hurricane specifications) |
| -$7417 | AEP rebate of $1.10/watt |
| $24,171.14 | Total Paid |
| $16,919.80 | Cost after 30% federal tax credit |
A large part of our costs were the patio and structure to hold the panels. If you take out the patio expense, the panel costs are $6001.
Our system should generate 9335 kWh of electricity per year. If we were to pay our current electric rate of $.12/kwh, it would generate $1,120 of power annually. The payback on the panels alone would be 5.36 years.
Since we also plan to run an electric car off the panels, we estimate saving an additional $250/month in fuel costs.
A recent study estimated the value of solar panels installed on a home would add $15,000 to the listing price. However, home appraisers and lenders are not yet sure how to value "green" features added to homes.
We figure we will have a great covered patio that shades the west side of our home from the summer heat gain. As we sit under our panels, it will make us smile, watching the "pennies falling from heaven" (quote from our builder, Scott Finney).
