Financial Benefits

Types of Benefits

There are a number of different types of financial benefits associated with using solar to power your energy needs. Click on each one listed below to learn more details about their advantages.

Electric Cost Savings

Net Metering

Annual Over-Production Payments

Solar Renewable Energy Credits (SRECs)

Increased Property Value

Solar Investment Tax Credit (ITC)

What’s My Payback?

Financial Illustration

Assumptions

When estimating the savings calculations of a solar system, certain assumptions are factored in, including:

  • Your Utility Company
  • Your Current Utility Rate (taken from the Power Bill provided)
  • Your Estimated Annual Utility Bill (from Power Bill)
  • Your Annual Utility Price Increase Rate

Also taken into account is:

  • Solar System Size, in kW (kilowatts)
  • Total System Cost, in $
  • Federal Tax Credit
  • State Tax Incentive

Project Detail Example

In order to provide an illustration from a specific example, highlights from a solar system's payback analysis are highlighted below. For a detailed look at the numbers on the spreadsheet, please click here for a screenshot.

  • Please note that the specific numbers for each proposal will vary depending on the above key inputs and assumptions and that the following is for illustration purposes only.

Solar System Payback Analysis

System Cost$21,350.28
Subtotal: Net Cost after Credits$6,455.40
Subtotal: Annual Credits$1,383.30
Net Cost: Total$5,072.10
System Payback: Years3.6
Energy Use in kWh/mon.867
9.0 kWh proposed system839
Percent of Energy from Solar97%