|
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) - federal incentive (in the form of a tax credit and rapid depreciation) Residential
PV systems, 5kW or larger, typically cost $8.00/*$8.25 per watt (this
depends
on complexity and could be either less expensive or more
expensive). With that, a 10kW system costs about (10,000 * 8.00 =
$80,000). Similarly, a 5kW system costs about (5000 * 8.25
= $41,250). Systems smaller than 5kW, typically cost a little
more
per watt. Residential PV systems
in NYC typically cost more than equivalent systems outside of NYC. Commercial PV systems
typically cost $1.00 to $1.50 more per watt that residential systems,
with commercial systems in NYC costing around $10 per watt. Large
commercial systems may see per watt costs as low as $7.
With
the NY state cash incentive**, the cost of a residential 10kW system
drops by
$35,000. Similarly, for a residential 5kW system, the cost
drops by $20,000.
In Commercial cash incentives** in New York, total $100,000 for 25 kW system! **
New York's cash incentives differ between residential and commercial
systems, and, are changing somewhat with the new incentive program (PON
1050) due to come into play in March, 2008. PON 1050
provides current
incentive rates for "efficient" systems, achieving a rating of 80% or
better. PON 1050 also provides incentives to less efficient
systems on
a pro-rated basis.
At a high level, systems that are at least 80% efficient would have the following rates: - NY
Residential - at $4/watt for the first 5000 watts and $3/watt up to
10,000 watts.
- NY Commercial - at $4/watt for the first 25,000 watts. For
complete details, see: NYSERDA/PON
1050 Cash Incentives
New Jersey:
New
Jersey's rebate
program is no
longer active. Financial
incentives for solar electric systems are in transition and are due to
be finalized within the next few months.
For more information, see: New Jersey’s Clean Energy Program™ Federal
Tax Credits:
In October of 2008,
President Bush signed into law a 30% Federal Tax credit 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
Your tax
professional will have to verify
this information as well as your eligibility for any tax
incentives. - Tax credits may be used against the Alternate Minimum Tax The SEIA (Solar Energy Industries Association) provides a guide to the Federal Tax Incentives. Click here to access this important and informative document. 6.
How long does it take to break even? The
answer
to this question can be quite complex. In general, PV systems tend to
break even in 8 or so years. Some systems may break even in 6
years and some may break even in 10 years. Each case must be
analyzed by your tax professional. **
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.
** New Jersey systems tend to break even faster due the accrual and sale of SRECs. |