What Kind Of Financial Return Can I Expect? 

If you pay cash for your solar power system, you may expect the following returns
(see assumptions & disclaimers below):
  

Electric Bill Cost - monthly average	$75	$125	$350
System size in kW DC	2.96	4.44	8.88
Electric bill coverage	82%	92%	95%
Electric kWh usage coverage	75%	76%	77%
Roof space required	218 sq ft	327 sq ft	653 sq ft
Approximate system cost	$24,982	$37,207	$73,882
CSI rebate at $1.90/watt	$4,451	$6,678	$13,357
Federal tax credit 30% (after rebate)	$6,159	$9,158	$18,157
Net cost (after rebate & tax credit)	$14,371	$21,371	$42,368
Internal rate of return – 3% utility inflation rate	5.3%	9.0%	13.8%
Internal rate of return – 6.5% utility inflation rate	9.6%	13.2%	18.0%
System resale value (see note below)	$17,040	$36,140	$104,400

* assumptions *
Single Story Home
Composite Roof
20 degree tilt
184 degrees true south
No shading issues
Santa Cruz - 95060 zip code
8.5% sales tax
Starting at Pacific Gas & Electric E-1 utility rate and switching to E-6 utility rate when the solar power system is installed.

* disclaimers*
Your results will vary since every home is unique and every household situation is unique. These numbers are provided as a rough estimate only under an estimated "perfect" condition. We do not provide tax or investment guidance. Please use a tax or investment professional since every person's situation is unique.

If you want to see what kind of return you can expect for your home, click here for a free solar power analysis.

System Resale Value
"System Resale Value" is based upon research published in the Appraisal Journal which concluded that "The increase in appraisal value for a home is about twenty (20) times the annual reduction in operating costs due to energy efficiency measures.". To calculate System Resale Value the first year annual utility savings is multiplied by twenty (20). Source: Evidence of Rational Market Valuations for Home Energy Efficiency, Appraisal Journal, Nevin/Watson, October 1998