How is the credit to my utility bill determined?
Due to the fact that your solar panel is part of a larger array that shares one production meter, your bill will be credited back at a pro-rata portion of the entire array’s production. If you are able to utilize the individual income tax credit the financial scenario would look like this:
Initial investment $750 – $225 tax credit = basis of $525
Initial Annual Energy Credit $29.80 (at mid-tier rate, then projected to escalate at 2% per year)
Simple Payback: $525 net investment divided by $29.80 annual billing credit = 17.6 years which is very representative of solar energy systems. However, the value of the annual credit will increase along with our rates.
Another way to look at it is that you are locking in today’s rates by prepaying for a block of renewable energy. You should receive approximately 8,800 kWh (kilowatt hours) with a net cost of $525. You are prepaying 6 cents/kWh. This is already less than our mid-tier rate.