I asked my wife to read the last article I wrote in the Go Green section of the Free Press and asked for feedback. She said: “It's great, dear, but I still don't know how much solar costs.”
Using much of the solar jargon I've acquired throughout my career, I tried to explain that every situation is different and there is no one price; it depends on roof orientation, mounting angle, panel size and type, historic household energy consumption, and so on. All she heard was “blah, blah, blah,” and restated “all I want to know is how much it is going to cost me — $50 or $50,000.”
Therefore, I was inspired to give the rough answer for those of you that may be interested in what the investment is to go solar. The “average” homeowner paying $100 per month in electric bills consumes about 11,500 kilowatt hours (kwh) per year based on the current electric rate of 10.5 cents per kwh.
A solar system comprised of 35-40 panels and utilizing 500-700 square feet of roof space should create enough electricity to offset this usage over the course of a typical year. The price of a solar system can vary widely and is dependent upon panel quality, installer expertise, mounting equipment, installation method, and existing electrical arrangement. That being said, the value of a solar system, again using solar industry language, is between $6-$8 per watt installed or in this case right around $53,000; but because of the available renewable energy incentives, this is not the price you will pay.
The current Solar*Rewards rebate from Xcel Energy is designed to pay for nearly half of the system cost BUT THIS REBATE IS A MOVING TARGET and is designed to diminish over time. Because most installers will “float” this rebate, we can subtract it right off the top leaving $30,200, of which 30% or $9,060 will be paid back through a federal tax credit; which means you will invest $21,140 in a solar system worth over $50,000 that will offset $1,200 worth of utility payments the first year.
If a mortgage-type loan is used to finance the investment, monthly loan payments will be about the same as current utility payments but instead of increasing over time they will be FIXED for the loan period and the interest portion could be tax deductible as well. When we account for inflation using historic inflation rates of 7-8, that same solar system will offset around $1,600 worth of expenses in year 5 and $2,300 worth of electricity in year 10.
In other words, the return on investment gains value each year and now as electric rates go up (incidentally according to the current proposed rate case by Xcel Energy, costs are scheduled to go up as much as 13.59% next year for residential customers), you cheer instead of complain as your solar system becomes more valuable.
Additionally, the National Appraisal Institute in joint effort with Housing and Urban Development and the Environmental Protection Agency coordinated a study and found that for every dollar offset by renewable energy or energy efficient measures, home value could be raised by 20.
In the case of our “average” home, the asking price could increase by as much as $24,000 in the first year. So what does it cost to “go green?” Nothing — in fact you can end up making money. It is better to think of renewable energy as an investment in your future rather than an expenditure. What is the return on investment from your current utility payments?
from "Going Green" in GJ Free Press 23 Nov 2009
Scott Wegs
Solar consultant
HIGH NOON SOLAR
569 S. Westgate #4
Grand Junction, CO 81505
highnoonsolar_scott@yahoo.com
970-234-1498
Monday, November 23, 2009
Monday, November 16, 2009
Energy Star Conference Friday, November 20
Designing, Building & Selling Structures that are:“Safe, Healthy, Durable, Comfortable & Energy Efficient”
Friday, November 20
8:00 am - 4:30 pm
Clarion (formerly Holiday) Inn Hotel
755 Horizon Drive, Grand Junction, Colorado
$85.00 Registration
(Lunch is included)
Call 970-275-2717
Seating is limited
WHO SHOULD ATTEND?
Builders / Contractors
Real Estate Agents (CEUs may be available)
Appraisers / Mortgage Lenders
HVAC / Plumbers
Building / Planning Representatives
Building material providers
Trade Contractors
Elected Officials
Engineers
Architects
Friday, November 20
8:00 am - 4:30 pm
Clarion (formerly Holiday) Inn Hotel
755 Horizon Drive, Grand Junction, Colorado
$85.00 Registration
(Lunch is included)
Call 970-275-2717
Seating is limited
WHO SHOULD ATTEND?
Builders / Contractors
Real Estate Agents (CEUs may be available)
Appraisers / Mortgage Lenders
HVAC / Plumbers
Building / Planning Representatives
Building material providers
Trade Contractors
Elected Officials
Engineers
Architects
Wednesday, November 4, 2009
XCEL ENERGY TO REDUCE SOLAR PAYMENTS BEFORE 2010!
“GO GREEN” Page Article from Grand Junction Free Press for Monday 2 November 2009
XCEL ENERGY SET TO REDUCE SOLAR PAYMENTS BEFORE 2010!
GRAND JUNCTION BUSINESSES AND HOMEOWNERS ACT NOW!
On 28 October 2009 Xcel Energy submitted its 2010 “Renewable Energy Standard Compliance Plan” to the Colorado Public Utility Commission. As part of this plan, Xcel Energy will reduce its payment to Xcel Solar Rewards customers from $3.50/watt to $3.00/watt. What this means for an average Grand Junction Homeowner who purchases a 5 kilowatt solar system is a loss of $2500.00 towards the purchase of the solar system, or a loss of $5000.00 to the average business owner who purchases a solar system. It is crucial that homeowners and businesses “lock-in” the larger rebate now, and then have 9 months to install the solar system. In addition to the Xcel Energy Solar Rewards rebate, there are federal tax credits, grants, and accelerated depreciation that further reduce out of pocket costs of solar for businesses. If you are not an Xcel Energy customer, the federal incentives still apply, and there will be rebates available from the state of Colorado in 2010. Since 2007, hundreds of Grand Junction homeowners and businesses have purchased solar systems that save them money by producing on-site, clean and independent power. How does it work?
For Businesses, the Xcel Energy Rebate will pay 40-60% of the cost of the solar system. The Federal Tax Credit or US Treasury Grant (Grant only available 2009-2010) will pay another 30% of the cost of the solar system. For businesses, there is accelerated cost recovery for the capital investment in the solar (bonus depreciation is only available for 2009-2010), which returns another 25-30% of the cost of the solar system to the business owner within a 5-6 year period. Yes, in other words, more than 100% of the cost of the solar system can be returned to the business owner within a 5-6 year period. And that does not even include the savings on the utility bill! Homeowners receive the Xcel Rebate and the 30% Federal Tax Credit, which combined can pay for 75% of the cost of the solar system before savings on the utility bills.
Atlasta Solar Center is the leading solar energy installation and distribution company on the Western Slope, and Atlasta Solar is one of the longest operating solar companies in Colorado. Since 1979, Atlasta Solar Center has installed over 1500 solar systems for businesses and homeowners. Atlasta Solar is proud to celebrate its 30 year anniversary in Grand Junction by offering special solar sale prices for 2009. Call now to get your rebate!
XCEL ENERGY SET TO REDUCE SOLAR PAYMENTS BEFORE 2010!
GRAND JUNCTION BUSINESSES AND HOMEOWNERS ACT NOW!
On 28 October 2009 Xcel Energy submitted its 2010 “Renewable Energy Standard Compliance Plan” to the Colorado Public Utility Commission. As part of this plan, Xcel Energy will reduce its payment to Xcel Solar Rewards customers from $3.50/watt to $3.00/watt. What this means for an average Grand Junction Homeowner who purchases a 5 kilowatt solar system is a loss of $2500.00 towards the purchase of the solar system, or a loss of $5000.00 to the average business owner who purchases a solar system. It is crucial that homeowners and businesses “lock-in” the larger rebate now, and then have 9 months to install the solar system. In addition to the Xcel Energy Solar Rewards rebate, there are federal tax credits, grants, and accelerated depreciation that further reduce out of pocket costs of solar for businesses. If you are not an Xcel Energy customer, the federal incentives still apply, and there will be rebates available from the state of Colorado in 2010. Since 2007, hundreds of Grand Junction homeowners and businesses have purchased solar systems that save them money by producing on-site, clean and independent power. How does it work?
For Businesses, the Xcel Energy Rebate will pay 40-60% of the cost of the solar system. The Federal Tax Credit or US Treasury Grant (Grant only available 2009-2010) will pay another 30% of the cost of the solar system. For businesses, there is accelerated cost recovery for the capital investment in the solar (bonus depreciation is only available for 2009-2010), which returns another 25-30% of the cost of the solar system to the business owner within a 5-6 year period. Yes, in other words, more than 100% of the cost of the solar system can be returned to the business owner within a 5-6 year period. And that does not even include the savings on the utility bill! Homeowners receive the Xcel Rebate and the 30% Federal Tax Credit, which combined can pay for 75% of the cost of the solar system before savings on the utility bills.
Atlasta Solar Center is the leading solar energy installation and distribution company on the Western Slope, and Atlasta Solar is one of the longest operating solar companies in Colorado. Since 1979, Atlasta Solar Center has installed over 1500 solar systems for businesses and homeowners. Atlasta Solar is proud to celebrate its 30 year anniversary in Grand Junction by offering special solar sale prices for 2009. Call now to get your rebate!
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