P.C. Costs/ another view

[NativeSol@aol.com]

With all of this talk about true costs, here's a business example of a large 
p.v. systems cost in California. . .gleened from the p.v. industry marketing.

                                    ~ * ~
The U.S.A. Federal Government has a permanent 10% Business Energy Tax Credit 
for Renewable Energy Equipment, which includes solar electric, solar thermal, 
and wind power systems.

In addition, this Federal Business tax Credit also includes an Accelerated 
5-year Depreciation Schedule which allows 100% of the system cost to be 
subtracted from your taxable income over the first 5 years.  
(Applies to commercial only, which can include a home business)

                                            ~ * ~

For example:   a 5 kilowatt (AC) p.v. system for someone in a 34% fed. tax 
bracket.
                system cost approx.  $35,660.  install $6,000.  Total  
$41,660.

    *   p.v. system cost                                $41,660.
    *   10% 1st. year Credit                            <$4,166>
    *   20% 1st year depreciation                       
        (1/5 of $37,494 = $7498 x 34% tax bracket) =  <$2,549>
    *    20% Depreciation/year (year 2-5)
        ($2549 x 4 years)  =                            <$10,198>

    *   State of California rebate
        (aplies to both commercial and residential) <$14,649>
                                                    ---------------
    *   Installed cost after rebates  (after 5 years)   $10,098

Value of electricity generated:
        (assuming an average cost of $ .20 per KWH over the next 5 years

    *   5 KW p.v. x 5 ESH/day x 365 = 9,125 KWH/year
    *   5 years x 9,125 KWH/year = 45,625 KWH/5 years
    *   45,625 KWH x $ .20/KWH = $9,125 additional savings over 5 years
        ($1,825/ yr.)

Value of power generated (over 5 years)         <$9,125>

Net cost after year 5                               <$973>

Positive cash flow after year 6                 + $852

payback = $10,098 : $1,825 = 5.53 years

Most solar panels today have a 25 year warranty

                                        ~ * ~

Now, I know that not everyone on this list has these rebates, but many do.
And, there is an economy of scale for some sytems. 
But, there are some great micro-sine inverters out there that basically allow 
you to 
slap one (a little bigger in size than a palm pilot ) on the back of a panel; 
add a cord and plug; and plug it into an exterior G.F.I. receptacle.
The power co's may not approve. . .but it's U.L. approved. And works!

There will definately be a point in the future where the rising costs of 
power (elec.)  will cross the lowering costs of p.v. panels; so that the 
payback will be even shorter.

But, this is looking at a purely economical point of view.

What about all of the bragging rights you'd have at parties,
and the good Karma points you'd rack up.

So Flame ON. . I won't care because I'll be away for 5 days :)

buckethead







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