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3. How much power
does a Solar Electric System
generate? 5. How much does a
Solar Electric System cost? Queens
Times
Ledger, November 2008  1. How Does a
Solar Electric System Work? 
A
typical 200 watt solar panel, is about 5’ x 3’, and weighs about 40 lbs.
2.
What makes a good Solar Electric Site?
**
Systems may also be pole or ground mounted in a field (see “photos” for
examples)
3.
How much power does a Solar Electric System generate? Based
on
values obtained
from the NJ
Clean
Power Estimator, and assuming a northern NJ or southern NY
location, due south exposures and no shade from 9 am until 3 pm, a
photovoltaic system is estimated to generate electricity as follows:
4.
What about Solar Renewable Energy Certificates (SRECs)? New
York State does not currently have an SREC program. The following answer
was taken from New
Jersey’s Clean Energy Program™ website on
November 14, 2005, and is subject to change. New Jersey
SREC Program - SREC stands for Solar Renewable Energy Certificate
and is a tradable certificate that represents all the clean energy
benefits of electricity generated from a solar electric system. Each
time a solar electric system generates 1000kWh (1MWh) of electricity,
an SREC is issued which can then be sold or traded separately from the
power. This makes it easy for individuals and businesses to finance and
invest in clean, emission free solar power.
5. How much does a Solar Electric System cost? The answer to this question is based on several pieces of information:- installed
cost
- state incentive (in the form of a cash, and/or tax credit) - local incentive (in the form of a property tax abatement) - federal incentive (in the form of a tax credit and rapid depreciation) Residential
PV systems, 5kW or larger, typically cost $7.25/*$8.00 per watt (this
depends
on complexity and could be either less expensive or more
expensive). With that, a 10kW system costs about (10,000 * 7.25 =
$72,500). Similarly, a 5kW system costs about (5000 * 7.75
= $38,750). Systems smaller than 5kW may approach $9 or $10 per
watt. Commercial PV
systems
typically cost as low as $7 per watt. Federal, State and Local IncentivesThere is a federal tax credit
equal to 30% of system cost for
eligible residential and commercial systems. There is no maximum
limit on this incentive. Other benefits of this legislation:
- Certain systems may
be rapidly depreciated
- Tax credits may be used against the Alternate Minimum Tax 50% Depreciation Bonus in first year (see your tax professional for details) ** Only your tax
professional can tell you how incentives will impact the final cost of
your system.
New York: State Incentives:
25%
Residential
Tax Credit
- $5000 maximum
NYSERDA cash incentives: Residential:
NYS
Green
Building Tax Credit:- $3.00 per watt up to
4000 watts
- $2.00 per watt between
4000 watts and 8000 watts
- $20,000 maximum
Commercial:- $3.00 per watt up to
40,000 watts
- $2.00 per watt
- $200,000 maximum
Commercial Photovoltaic
Module Credit:
- 25% of total
system cost taken at 5% for 5 years
Long Island Power Authority: Residential: $3.50/watt DC;
- $35,000 maximum
Commercial: $1.00 - $3.50/watt DC (depends on system size);- $145,000 maximum
Gov't, Schools, Nonprofits: $1.00 - $4.50/watt DC (depends
on system size)- $195,000 maximum
NYSERDA EnergySmart Loan: - buydown on loan by 6.5%
points (Con Ed territory)
- 4% points elsewhere
- these loans are currently for resdential systems only. New
York
City
- 35% Property Tax Abatement
- $65,500 maximum taken
each of 4 years
- $250,000 maximum
total incentive
** Only your tax
professional can tell you how incentives will impact the final cost of
your system.
New Jersey: State Incentives:
Clean Energy Program cash incentives: Residential:
Solar
Renewable
Energy Certificates- $1.55 to $1.75 per watt
up to 10,000 watts
- $15,500 to 17,500 maximum
Commercial:- $1.00 per watt up to
$50,000 watts
- $50,000 maximum - see question 4, above - SRECs are trading between $500 and $650 dollars per SREC - a 10,000 system may create 11 SRECs per year ** Only your tax
professional can tell you how incentives will impact the final cost of
your system.
6.
How long does it take to break even? The
answer
to
this question can be quite complex due to the many federal, state
and local incentives. Break even points typically run from 4
years to 8 years. Every situation is different. We provide
a break even analysis with our proposals. Only your tax
professional can tell you how incentives may impact your system's cost. **
The cost of electricity has historically risen at a rate of about 3%
per year. In many areas in the northeast, electric rates have
increased much as 23% in recent years. As rates increase, PV
systems become more valuable, resulting in a reduced amount of time to
break even and increased property values.
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