Page 4 - Josephine Casillas. 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 renewableenergy generationsystem become eligible for afederal tax credit of up to 30% ofthe 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
Bygoingsolar,youreduceyour energybillsimmediately,yetbypayingforthesystem,youarestilltechnicallypayingforthesolar energy.Tofind your Fixed Solar Energywe 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 FLOW AND 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 graphdownsoyoucansee,foreachyear,exactlyhowmuchcouldbesavedbyproducingyourownenergy(yourInflow) andhowmuchwillbe 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 OTHER APPLICABLE TAXES ARE NOT INCLUDEDIN THIS ANALYSIS.
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Sample FPL Price Increase Vs Loan
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