| Commercial Photovoltaic Costs,
Paybacks, Maintenance |
| Talking about Costs |
| When solar manufacturers and installers talk
about costs, they usually speak in terms of dollars per installed
watt ($/W). |
Bigger systems
cost fewer dollars per watt, but always cost more
in absolute terms.
Conclusion: installing a larger system is pricey
up front, but is almost always more cost-effective.
|
 |
|
| How much will my system cost
up front? |
Typically, commercial PV systems are installed
at around $7-11 per watt. The larger the system, the closer
your system will lean toward the $7 side.
Using this rough measure of installed costs, we can
come up with a total installed cost range:
|
| |
Remember
purchasing a smaller system will increase the per Watt
cost and purchasing a larger system will decrease the per
Watt cost. Therefore… |
 |
For a 0.5kW PV system, you will probably see installed
costs around $11 per watt. That’s 500 watts X $11/watt
= $5,500 |
|
For a 2kW PV system, installed costs should be around $9
per watt. That’s 2,000 watts X $9/watt = $18,000 |
|
For a 8kW PV system, installed costs should drop to around
$6.50 per watt, or, 8,000 watts X $6.50/watt = $52,000 |
This gives us a range of $5,500 to $52,000
installed for a smaller, commercial PV system.
|
| Maintenance |
| Maintenance is really not an issue for PV systems.
A good installer should not have to come back out for system
maintenance. |
| State and Federal Incentives |
PV costs can be cut remarkably by government
tax credits, incentives and financing deals. Unfortunately,
the Southeast has lagged in promoting renewable energy, with
a few notable exceptions.
As part of the Energy Policy Act of 2005, the U.S. government offers a 30% tax credit for qualified PV system expenditures. This business investment tax credit for solar equipment does not have a maximum credit limit. The incentive applies to equipment placed in service between January 1, 2006 and December 31, 2007. After December 31, 2007, the permanent 10% solar tax credit for businesses resumes.
To learn more, read Tax Incentive Opportunities for Solar and Energy Efficiency on the Southface factsheet page. |
| DSIRE Database |
|
The North Carolina Solar Center has put together a website
called DSIRE, or Database for State Incentives for Renewable
Energy. Refer to this website for a comprehensive list
of incentives in your state, and check with your utility
provider for additional incentives.
www.dsireusa.org
|
| Here are a few highlights that deal with commercial
systems: |
| • |
In Florida, solar energy systems are exempt from the state's sales and use tax. |
| • |
Tennessee Valley Authority will purchase renewable energy
from TVA-connected commercial producers at a rate of 0.15
cents per kilowatt hour when the commercial system is generating
more power than it needs |
| • |
North Carolina provides a 35 percent tax credit for commercial,
industrial and residential purchases of renewable energy
generators |
| Paybacks |
Most people want to know if they’re
PV system will pay for itself through lower electric utility
bills. In the Southeast, without the ability to take advantage
of any incentives, this is extremely unlikely.
Electricity in the Southeast can be as cheap as 3 cents
per kilowatt hour, so the amount of money offset by producing
your own electricity is very small. If electricity cost
more, say, 20 cents per kilowatt hour, then payback periods
would be shorter.
Using incentives such as the North Carolina 35 percent
tax credit and the TVA Green Power Partners can dramatically
reduce costs to the point where payback time becomes
reasonable.
Considering current market conditions, it’s probably
best to think about solar energy as an investment in
energy security and environmental responsibility, as
opposed to a purely financial investment. By owning a
solar array and generating clean electricity, you become
part of the energy vanguard. If your customers see this,
it might increase their loyalty to your establishment.
|
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Link to PV Manufacturers List |
|
Link to PV Installers List |
