Average Number of Sun Hours: 4.73
At this geographic location, in order to generate 100,000 kW of electricity per year, you would need a 73 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 $474,500.00.
Business Energy Investment Tax Credit (ITC) $142,350.00
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 $142,350.00
Modified Accelerated Cost-Recovery System (MACRS) $94,900.00
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 $94,900.00
How many years to pay off the photovoltaic system
Original Cost of System: 474,500.00
End of Year 1 Savings:
Investment Tax Credit: $142,350.00
MACRS: $94,900.00
State Rebate: $0.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $227,250.00
End of Year 2 Savings:
MACRS: $94,900.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $122,350.00
End of Year 3 Savings:
MACRS: $94,900.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $17,450.00
End of Year 4 Savings:
MACRS: $94,900.00
SRECs: $0.00
Energy Savings: $10,000.00
Remaining System Cost: $0.00
