Cash Purchase - A
solar system may be purchased with cash. While the total cost of the
system may run between $50,000 and $80,000, the actual cash outlay will
most likely
be between $20,000 and $40,000 due to the deduction of NJCEP rebates
and Federal Investment Tax Credits. The owner's investment will
typically be repaid from revenues within five years, yielding a Return
on Investment over 20%.
Price
$49,000
$68,000
Federal Investment Tax Credit
-$14,700
-$20,400
NJCEP Rebate (Suspended)
-
-
Investment by Homeowner
$34,300
$47,600
Income
Electrical Savings
$1,428
$2,142
SREC Earnings
$5,040
$7,560
First Year Income
$6,468
$9,702
10 Year Average Yearly Income
$6,333
$9,500
Investment Performance
Time to Break Even
5.4 Years
5 Years
Return on Investment
18.4%
20%
Increased Home Value
$29,560
$44,339
10 Year Purchase with Loan - Obtaining a loan for five to ten years will yield a
positive cash flow for the owner such that the owner will receive a
portion of the monthly revenues from the solar system after the loan
payment has been made.
7,000 Watts
10,000 Watts
Average Monthly Income
$537
$792
Monthly Payment
$364
$505
Monthly Income to Owner
$173
$287
25 Year Purchase Included with Mortgage - Adding the price of the solar electric system to a home
mortgage will actually reduce the mortgage payments and home energy
expenses by as much as $500 a month!