[This post is part of a series about our net-zero residential solar project – to see a list of links to the full Solar Project series, click here or to bring up a list of all green-themed posts, click here.]
I have been getting enough questions from the blog readers and neighbors that it is time to do a frequently asked questions list. I have divided the common questions into four groups: practical questions, financial questions, technology questions, project questions and philosophical questions. These are the Financial Questions.
Financial Questions
Q: What does it cost?
In general, the cost is about $6,000 – $9,000 per kilowatt (kW). So a 2500 sq. ft. house with moderate electricity usage (an electric bill of about $175 per month) might require a 6kW system. This would cost about $36,000 to $54,000 before state and federal rebates – and $18,000 to $27,000 after rebates. Installed system pricing is site specific. Some of the factors that determine price include: Size of electric bill (and amount you want to offset); location of your site; shape and height of roof; roof accessibility; state and local incentives that may apply, in addition to the 30% federal investment tax credit. See The Solar Project – This Might Actually Be Possible (MA) and The Solar Project – This Might Actually Be Possible (Federal & Macroeconomic). (return to list of questions)
Q: What does it save?
Depends how much power you can generate and how big of a project you want to undertake. In our case it saves the entire cost of our electric bill, and brings in meaningful income from SRECs. See The Solar Project – Equipment Economics and The Solar Project – Financing. (return to list of questions)
Q: What federal and state incentives are available?
In 2009 the US government raised its federal tax credit for energy efficiency improvements to 30%. If you are in one of the dozen or so states with incentives, and qualify for additional state and local incentives, you could save about 50% on the cost of a residential solar system. If you are on the fence and are not sure whether to move, it is worth noting that these savings for residential solar energy are unprecedented, were born out of the post-crash stimulus in 2009, and may not last long. For a list of state rebates and incentives available for renewable energy projects, you can go to the Database of State Incentives for Renewables & Efficiency (www.dsireusa.org). In addition, many panel makers such as offer interactive residential solar power estimators (such as this one offered by SunPower) which let you figure out which tax credits for residential solar energy might apply to your project. (return to list of questions)
Q: Can I get savings without spending any money up front?
Yes, you can arrange for any number of different zero-money-down options. If designed fairly, they should net you some modest monthly savings. But not all of these programs are created equal, and much of the savings you might have achieved goes to interest and profit for the manufacturer. The Solar Project – Financing for a discussion of these issues. (return to list of questions)
Q: How quickly will you get your money back?
Our project is projected to repay the initial capital outlay in 4.8 years. For greater detail see The Solar Project – Financing. (return to list of questions)
Q: Would this system increase or decrease the value of your house if you sold it?
It is a moot question in our case because we do not intend to sell our house. That said, energy conservation and renewable generation tends to add value to a house if it is installed in a way that is aesthetically acceptable. There are published surveys showing that for every $1000 saved per year, as much as $20,000 may be added to a house’s value. Like kitchens and bathrooms, solar energy can be one of the better home improvement investments you can make. (return to list of questions)
[This post is part of a series about our net-zero residential solar project – to see a list of links to the full Solar Project series, click here or to bring up a list of all green-themed posts, click here.]
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