In an effort to “green” our operations, we have installed a 10-KW photovoltaic solar panel array on our Eastham warehouse. This system will produce more than 25% of our annual electricity demand. We have recently completed an energy audit and have embarked upon a project to improve our energy efficiency in an effort to reduce our consumption. This system is projected to have a payback period of less than 3 years!
Learn more about the compelling financial case for this project by reviewing the figures below. Note that current rebates offered through the Massachusetts Technology Collaborative (MTC) are different for residential and commercial installations. The figures below are from our commercial installation.
Photovoltaic (PV) System Investment Summary (Commercial building)
System: 48 panels for 10 KW nominal capacity
Price (initial cost / cash outlay):
$
67,867.00
State Rebate / MTC Grant (paid 60 days after completion)*
$
(30,807.00)
Estimated Federal tax on State Rebate**
$
10,782.45
State tax credit benefit from accelerated depreciation**
$
(1,964.18)
Estimated Federal tax Credit (on total investment)***
$
(20,360.10)
Estimated Federal tax Credit benefit from accelerated depreciation**
$
(20,190.43)
Effective Cost after tax credits and tax benefits as calculated above:
$
5,327.74
Projected generation (KW-hr/yr)***
12,137
Value of the system's production (first year)
$
2,548.77
Estimated payback in years
2.09
*See www.masstech.org for available rebates
**We are not licensed nor qualified to provide tax advice; we are merely presenting the implications of our specific situation. Consult your tax professional for advice for your situation.
***Calculated based upon 30% of total investment. See www.dsireusa.org for more information on available state and federal rebates.
****Projected generation total is site specific and should be calculated on a site-by-site basis.
Cape Associates can help you plan and implement your renewable energy installation – solar electric, solar thermal or wind. Contact us for more information.
