I'll be the first to admit that at retail prices with no incentives, residential solar is not yet affordable. However, what makes it affordable, or actually even slightly profitable, is a 30% tax credit. I essentially am paying 30% less for my system, with the remainder being paid by taxpayers in general. (You're welcome.)
My 10KW system cost me $34,900 installed. (Yes, that's $3.49 per Watt for those of you tracking prices.) This was a "turnkey" installation. I didn't need to do any permits, buy any equipment, or do anything at all... the installer took care of all that. That will net me a $10,470 tax credit.
However, I was able to completely finance this installation with a "solar loan". I have a 15-year FHA "Home Improvement Loan" (tax deductible) for the first $25000, plus an add-on "same-as-cash" loan for the balance (plus fees, etc.) which I need to pay off within 18 months. Of course, the plan is to pay it off with the 30% tax credit.
Here's the math for costs incurred before my system was activated January 5:
Loan application fee: $100
December loan payment: $229.16
December Savings:
Tax savings from deductible interest: $42.29
January Costs:
Loan payment: $229.16
January Savings:
Reduced electric bill (1.09MWh * $0.05227) = $56.97
Tax savings from deductible interest: $42.16
Running total of savings: $141.43
(Monthly savings are not expected to exceed costs until June when summer peak rates kick in, getting ahead by September.)
A prediction for February:
Reduced electric bill (3.95 * 28 * 10 = 1.105 MWh) = $57.77
Tax savings from deductible interest: $42.03
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