Average Number of Sun Hours: 4.78
At this geographic location, in order to generate 100,000 kW of electricity per year, you would need a 72 kW photovoltaic system installed.
Cost Analysis
Using a typical photovoltaic installed cost of $6.50/Watt (this cost can vary depending on many variables specific to your site), the total installed cost of this system should be approximately $468,000.00.
Business Energy Investment Tax Credit (ITC) $140,400.00
The credit is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.
Tax credit for this system is likely to be $140,400.00
Modified Accelerated Cost-Recovery System (MACRS) $93,600.00
The MACRS allows a corporation to depreciate the cost of the solar panels and associated equipment and installation in five years.
The depreciated cost per year of this system is $93,600.00
How many years to pay off the photovoltaic system
Original Cost of System: 468,000.00
End of Year 1 Savings:
Investment Tax Credit: $140,400.00
MACRS: $93,600.00
State Rebate: $0.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $224,000.00
End of Year 2 Savings:
MACRS: $93,600.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $120,400.00
End of Year 3 Savings:
MACRS: $93,600.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $16,800.00
End of Year 4 Savings:
MACRS: $93,600.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $0.00
