Here’s a great comment I’d like to share with you all. One of ourreaders, Matt, was able to give us a complete breakdown of not only hisexperience with solar but its full fiscal benefits realized by owningthe system.
To my surprise I was amazed at how fast the system paid itself offand now is purely generating profit. This is a Maryland example, Ifthe below scenario seems intriguing, we encourage you to get in contacttoday with a verified solar installer from cooler planet.
Itoo did question the costs and figures with installing solar. Here aremy real world numbers that show I will make my money back in 3 yearswith 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 – $21,403
Inaddition, 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 bathroomreturn 80% – 85%. As per a 1990’s survey of home prices with solar andwithout solar – they determined that for every one dollar saved inelectricity 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 yourhome.
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
Ifyou do not calculate the increase in home value the breakeven point is13 years. Please keep in mind that Federal and States offers areconstantly changing grants and tax breaks. (For example – Marylandhalved their Grant in 2009.)
Inmy 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 suggestthat each person research their state grants to see if solar is worthit. You may just be surprised.