Estimating a Solar System’s Benefit to Your Home, Business or Non-profit
While there are MANY factors to consider, AIRE believes the following 5 (ranked in order of importance) are the most critical:
- The price paid for the solar system
Purchasing a solar system is equal to buying ALL the electricity the solar system will produce over its 25 – 30 year lifetime on day one – avoiding the rising cost of energy made more expensive by general and energy inflation. The more you pay for the solar system, the more you pay for the electricity produced by the solar system.
- The value of the energy produced by the solar system
The energy produced by a solar system is worth more when consumed onsite – offsetting more expensive energy purchased “at retail” with inflation and utility profit margin included. AIRE recommends sizing solar systems to ensure all the electricity produced by the system will be used onsite.
- The terms of finance used to purchase/develop the solar system
- Qualification for the tax-based “coupons” offered for the purchase of a solar system
- The useful lifetime of the solar system
The “coupons” offered for the purchase of a solar system are tax based. Businesses paying federal taxes can purchase a solar system for 50% – 60% less than non-profits, as non-profits cannot gain these funds from their tax bill. Individuals paying federal taxes and purchasing solar systems for their homes will pay 30% less for the system, thanks to a 30% tax credit offered by the Federal Government. Businesses receive the same 30% tax credit and accelerated depreciation when purchasing a solar system.
This calculator is for estimation purposes only. AIRE’s intent is to illustrate the relationships between the costs and benefits of a solar installation. DO NOT PURCHASE OR FINANCIALLY PARTICIPATE IN A SOLAR SYSTEM BASED ON THIS CALCULATOR ALONE.