Solar Electric System Payback  

Solar Electric System Payback Examples based upon Incentives Available

  


Fresno California Example: 9.6kw Solar System, PG&E Territory R

Electric Utility Savings: The purchase of electricity (kWh) from your utility is expected to be reduced 59%. Expect a savings of $4,078 in electric bills (75%) at current utility rates.  Annual utility electric costs will be reduced from $5,427 to $1,349. Savings will grow as electric utility rates are expected to rise 3.78% a year. Your electric rate has Tiered attributes, and this project will reduce your average utility electric cost from $0.23 to $0.14 per kWh.

Over 25 years, annual utility savings are expected to average $6,750, for a total utility savings of $168,750. In gross income (pre-tax) dollars, savings average $10,075 annually or $251,865 over the system life.

System Performance Summary  9.6 kW DC (9.216 kW AC, 8.383 kW CEC) producing 14,088 kWh/Year

Purchase Price & Net Cost
System Price: $28,800
Incentives to Customer: ($9,814)
Net Purchase Cost: $18,986
Cash Gained over Life: $230,250
Customer Type: Residential

Financial Data
Cashflow Payback: 2.9 years
Internal Rate of Return (IRR): 36.5%
Modified IRR (MIRR): 15.1%
Net Present Value (NPV): $109,228

CO2 Saved over System Life: 289 tons. Equivalent to driving 578,000 auto miles

Finance: Cash 


Greater LA California Example: 9.6kw Solar System, SCE Schedule D Domestic Reg 16

Electric Utility Savings: The purchase of electricity (kWh) from your utility is expected to be reduced 60%. Expect a savings of $4,793 in electric bills (83%) at current utility rates. Annual utility electric costs will be reduced from $5,764 to $971. Savings will grow as electric utility rates are expected to rise 3.78% a year.

Over 25 years, annual utility savings are expected to average $7,969, for a total utility savings of $199,237. In gross income (pre-tax) dollars, savings average $11,895 annually or $297,371 over the system life.

System Performance Summary  9.6 kW DC (9.216 kW AC, 8.383 kW CEC) producing 14,286 kWh/Year

Purchase Price & Net Cost
System Price: $28,800
Incentives to Customer: ($8,137)
Net Purchase Cost: $20,663
Cash Gained over Life: $274,079
Customer Type: Residential

Financial Data
Cashflow Payback: 2.7 years
Internal Rate of Return (IRR): 39.3%
Modified IRR (MIRR): 15.4%
Net Present Value (NPV): $130,878

CO2 Saved over System Life: 293 tons. Equivalent to driving 586,000 auto miles

Finance: Cash 

 


Honolulu Hawaii Example: 9.6kw Solar System

Electric Utility Savings: The purchase of electricity (kWh) from your utility is expected to be reduced 59%. Expect a savings of $4,507 in electric bills (59%) at current utility rates. Annual utility electric costs will be reduced from $7,680 to $3,173. Savings will grow as electric utility rates are expected to rise 3.78% a year.

Over 25 years, annual utility savings are expected to average $7,391, for a total utility savings of $184,771. In gross income (pre-tax) dollars, savings average $11,031 annually or $275,778 over the system life.

System Performance Summary  9.6 kW DC (9.216 kW AC, 8.383 kW CEC) producing 14,088 kWh/Year

Purchase Price & Net Cost
System Price: $28,800
Incentives to Customer: ($13,137)
Net Purchase Cost: $15,663
Cash Gained over Life: $257,486
Customer Type: Residential

Financial Data
Cashflow Payback: 2.2 years
Internal Rate of Return (IRR): 47.7%
Modified IRR (MIRR): 16.4%
Net Present Value (NPV): $125,031

CO2 Saved over System Life: 289 tons. Equivalent to driving 578,000 auto miles

Finance: Cash


Knoxville TN Example: 9.6kw Solar System, Knoxville Utilities Board

Electric Utility Savings: The purchase of electricity (kWh) from your utility is expected to be reduced 59%. Expect a savings of $2,113 in electric bills (59%) at current utility rates. Annual utility electric costs will be reduced from $3,600 to $1,487. Savings will grow as electric utility rates are expected to rise 3.78% a year.

Over 25 years, annual utility savings are expected to average $3,465, for a total utility savings of $86,628. In gross income (pre-tax) dollars, savings average $4,813 annually or $120,314 over the system life.

System Performance Summary  9.6 kW DC (9.216 kW AC) producing 14,088 kWh/Year

Purchase Price & Net Cost
System Price: $28,800
Incentives to Customer: ($9,137)
Net Purchase Cost: $19,663
Incentives in Later Years: $12,250
Cash Gained over Life: $110,272
Customer Type: Residential

Financial Data
Cashflow Payback: 4.5 years 
Internal Rate of Return (IRR): 23.2%
Modified IRR (MIRR): 12.3%
Net Present Value (NPV): $50,427

CO2 Saved over System Life: 289 tons. Equivalent to driving 578,000 auto miles

Finance: Cash


Columbia MO Example: 9.6kw Solar System, City of Columbia Electric

Electric Utility Savings: The purchase of electricity (kWh) from your utility is expected to be reduced 60%. Expect a savings of $1,914 in electric bills (66%) at current utility rates. Annual utility electric costs will be reduced from $2,887 to $973. Savings will grow as electric utility rates are expected to rise 3.78% a year.

Over 25 years, annual utility savings are expected to average $3,152, for a total utility savings of $78,807. In gross income (pre-tax) dollars, savings average $4,705 annually or $117,623 over the system life.

System Performance Summary  9.6 kW DC (9.216 kW AC) producing 14,088 kWh/Year

Purchase Price & Net Cost
System Price: $28,800
Incentives to Customer: ($12,937)
Net Purchase Cost: $15,863
Cash Gained over Life: $99,131
Customer Type: Residential

Financial Data
Cashflow Payback: 5.1 years 
Internal Rate of Return (IRR): 21.5%
Modified IRR (MIRR): 12.4%
Net Present Value (NPV): $43,317

CO2 Saved over System Life: 293 tons. Equivalent to driving 586,000 auto miles

Finance: Cash


Raleigh NC Example: 9.6kw Solar System, Duke Energy

Electric Utility Savings: The purchase of electricity (kWh) from your utility is expected to be reduced 60%. Expect a savings of $1,427 in electric bills (59%) at current utility rates. Annual utility electric costs will be reduced from $2,400 to $973. Savings will grow as electric utility rates are expected to rise 3.78% a year.

Over 25 years, annual utility savings are expected to average $2,341, for a total utility savings of $58,529. In gross income (pre-tax) dollars, savings average $3,644 annually or $91,095 over the system life.

System Performance Summary  9.6 kW DC (9.216 kW AC) producing 14,088 kWh/Year

Purchase Price & Net Cost
System Price: $28,800
Incentives to Customer: ($18,217)
Net Purchase Cost: $10,583
Cash Gained over Life: $77,883
Customer Type: Residential

Financial Data
Cashflow Payback: 4.5 years 
Internal Rate of Return (IRR): 24.5%
Modified IRR (MIRR): 13%
Net Present Value (NPV): $34,962

CO2 Saved over System Life: 293 tons. Equivalent to driving 586,000 auto miles

Finance: Cash