| How much will I save and what are the costs? In southern California the average residential customer with
an air conditioner can have an electric bill from $200 to $600 per month. The typical home will require a 2 to
6 kWh system to get relief from these increasing bills. The following table provides simple estimates.
*Summary:
| Size: |
4.2 KW |
| Gross Cost: |
$36,200 |
| LADWP Rebate: |
$14,719 |
| Federal Tax Credit: |
$10,860 |
| Net Cost: |
$10,621 |
| Monthly Savings |
$191 |
| Payback in years |
5 years |
For example, if your electric bill is $600 per month, you
could use 4.5 kW system. Let's say the approximate cost is around $9 per watt
to install, so this comes out to about $9/watt times 4,500 watts = $40,500. DWP
is offering rebates that comes close to 45% of the system cost. This system can
reduce your electric bill by 34% so the $600 per month reduces to about
$395/month ($600 minus 34% or $205). This savings of $205/month equates to
$2,457 per year. If the rebate on our $40,500 system is about $16,434, this
leaves $24,066 to make up. The Federal Government allows you a 30% tax
credit, reducing your cost to $11,916. If we are saving $2,457 per year in
electric bills, the $11,916 divided by $2,457/year = 4.9 years to break even.
With a minimum of 25 years of useful service, the next 20.1 years will save you
$61,791. Wow! If you financed the $11,916 for 5 years at 7%, your
monthly payment would be $235; for 10 years, the payment is $138. On a 5 year
loan, your monthly electric bill and loan payment would be about $30 more than
your electric bill before the solar panel installation. On a 10 year loan, your
electric bill and loan payment would be about $67 less than before.
|
Simple Solar Panel System Cost & Savings Table |
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Current Utility Costs |
|
|
|
|
|
|
Monthly Utility Bill |
$200 |
$400 |
$600 |
$800 |
$1,000 |
|
Annual Cost |
$2,400 |
$4,800 |
$7,200 |
$9,600 |
$12,000 |
|
30 Year Cost |
$72,000 |
$144,000 |
$216,000 |
$288,000 |
$360,000 |
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System Cost |
|
|
|
|
|
|
kW Output Desired |
1.5 |
3 |
4.5 |
6 |
8 |
|
Installed Cost, approx |
$13,500 |
$27,000 |
$40,500 |
$54,000 |
$72,000 |
|
Less: CA Rebate, approx |
$5,478 |
$10,954 |
$16,434 |
$21,912 |
$29,213 |
|
Less: Federal Tax Credit |
$4,050 |
$8,100 |
$12,150 |
$16,200 |
$21,600 |
|
Total System Cost |
$3,972 |
$7,946 |
$11,916 |
$15,888 |
$21,187 |
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|
New Utility Costs |
|
|
|
|
|
|
Monthly Utility Bill |
$132 |
$264 |
$395 |
$527 |
$636 |
|
Annual Cost |
$1,581 |
$3,162 |
$4,743 |
$6,324 |
$7,632 |
|
30 Year Cost |
$47,431 |
$94,862 |
$142,293 |
$189,724 |
$228,965 |
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Utility Savings |
|
|
|
|
|
|
Monthly |
$68 |
$136 |
$205 |
$273 |
$364 |
|
Annual |
$819 |
$1,638 |
$2,457 |
$3,276 |
$4,368 |
|
30 Year Savings |
$20,597 |
$41,192 |
$61,791 |
$82,388 |
$109,848 |
|
(less system cost) |
|
|
|
|
|
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|
|
System Breakeven Years |
4.9 |
4.9 |
4.9 |
4.9 |
4.9 |
|
Home Value Appreciation |
$17,500 |
$30,000 |
$45,000 |
$60,000 |
$80,000 |
|
* These results are approximate only. Your individual results will
depend on the position of your roof, the tilt of the roof, shading and
your current electric demand and use.
|
Suntricity
Inc
