Page 4 - Juan Ovalles MISSION SOLAR

SYSTEM COST
In every aspect of the solar industry, from manufacturing to installation, pricing structures are based on dollar per watt. The price-per-watt is then multiplied by the system size (the amount of power your system will be able to produce, measured in watts) to determine the Base Price for PV System.
30% FEDERAL INVESTMENT TAX CREDIT
Fortunately, those who purchase a renewable energy generation system become eligible for a federal tax credit of up to 30% of the total cost of the project. To determine the net system cost of your system, we deduct this 30% Federal Investment Tax Credit (ITC), as well as any other benefits, rebates, or incentives, from the total system cost.
PAYBACK PERIOD
Your Payback Period tells you how long it will take until your system pays for itself with the energy it produces. At the end of your Payback Period, you will have earned back, in savings, every dollar you spent on your system. The best part is that even after your losses have been recouped, you will continue to save over your system’s lifetime.
FIXED SOLAR ENERGY RATE
By going solar, you reduce your energy bills immediately, yet by paying for the system, you are still technically paying for the solar energy. To find your Fixed Solar Energy we took the System’s Net Cost, added any potential loan interest, and divided that by the system’s total production over 30 years. Luckily, that fixed cost stays the same over the system’s life-your energy consumption is no longer affected by inflation or utility rates hikes.
SOLAR SAVINGS
Even after your payback period ends, your savings will keep adding up, year after year. We consider the savings you earn paying off your system as your Net Savings, and to find them, we deducted your Net Cost from your total Sustainable Savings.
CASH FLOWAND BREAKDOWN
Your Cash Flow is calculated by deducting the annual system savings, and incentives from the base cost of the system. As you can see, we present your cash flow in two different ways. First, we graph it, so you can see your cash flow over your systems lifetime. Then we break that graph down so you can see, for each year, exactly how much could be saved by producing your own energy (your Inflow) and how much will be spent on the system (your Outflow).
NET COST IS CALCULATED ASSUMING THE 30% ITC IS APPLIED TO RECOVER COST. CALCULATIONS BASED ON ASSUMED QUALIFICATION FOR FULL INVESTMENT TAX CREDIT. TO RECEIVE THE FULL CREDIT YOUR FEDERAL INCOME TAX LIABILITY MUST BE AT LEAST EQUAL TO THE VALUE OF THE TAX CREDIT. ITC IS CALCULATED ASSUMING THE ENTIRE PURCHASE PRICE IS TAX CREDIT ELIGIBLE. ADDITIONAL COSTS RESULTING FROM NECESSARY ROOF REPAIRS OR UPGRADES MAY BE INELIGIBLE FOR A TAX CREDIT. IF SUCH REPAIRS ARE REQUIRED, A TAX PROFESSIONAL SHOULD BE CONSULTED TO DETERMINE THE APPROPRIATE TAX CREDIT AMOUNT. PROPERTY TAXES, INCOME TAXES, AND OTHERAPPLICABLETAXESARENOTINCLUDEDINTHISANALYSIS.