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With the incentives currently in place, system payback is currently 3-5 years for commercial installations and 8-10 years for residential installations!
Thanks to the passing of the American Recovery and Reinvestment Act of 2009, the Georgia Clean Energy Tax Incentive of 2008 (HB 670), and the Georgia Clean Energy Grants Bill of 2009 (HB 473), some great incentives are available to offset the cost of an installed solar photovoltaic system. The federal government offers a 30% income tax credit with no cap on residential and commercial systems. Furthermore, the state of Georgia offers a 35% tax credit with a $10,500 cap for a residential system and with a $500,000 cap for commercial. Grants from the federal government (30%) and from the Georgia state government (35%) are also available for businesses that prefer grant money to tax credit incentives! Please check out the Database of State Incentives for Renewables and Efficiency (dsire) web site for more details regarding both federal and state tax credits.
An installed solar photovoltaic power generation system will typically cost around $7-$8 per Watt for a grid-tied system and $9-$12 per Watt for an off-grid system installed which includes materials, shipping, and installation. Sales tax is not included. Prices will vary based on installation requirements, the size of the system, as well as other variables such as whether or not batteries will be installed, the type of inverter chosen, etc.
Residential PV Pricing Examples
| System |
3 kW |
5 kW |
| Number of solar PV panels |
15 |
26 |
| Avg. monthly kWh produced |
369 |
639 |
| Est. roof space required (sq. ft) |
300 |
500 |
| |
| Cost |
| Total Cost w/ Tax |
$22,120 |
$37,100 |
| |
| Incentives |
| Federal Tax Credit (30%) |
-$6,636 |
-$11,130 |
| GA State Tax Credit (35%) |
-$7,742 |
-$10,500 |
| Utility Incentive 1 |
-$1,032 |
-$1,790 |
|
| Net Cost After Incentives |
$6,710 |
$13,680 |
Commercial PV Pricing Examples
Commercial systems also have the added benefit of being eligible for accelerated depreciation.
| System |
10 kW |
50 kW |
| Number of solar PV panels |
50 |
240 |
| Avg. monthly kWh produced |
1230 |
5904 |
| Est. roof space required (sq. ft) |
1000 |
5000 |
| |
| Cost |
| Total Cost w/ Tax |
$70,300 |
$351,500 |
| |
| Incentives |
| Federal Grant or Tax Credit (30%) |
-$21,090 |
-$105,450 |
| GA State Grant or Tax Credit (35%) |
-$24,605 |
-$123,025 |
| Federal MACRS Depreciation (over 5 years) |
-$18,505 |
-$92,527 |
| Utility Incentive 1 |
-$3,441 |
-$16,521 |
|
| Net Cost After Incentives |
$2,659 |
$13,977 |
1 Numerous utility incentives are available depending on your utility company. These examples were calculated using the TVA Green Power Switch Generation Partners Program incentive which will pay you $.12 over retail rate for each kWh that you generate. The number reported in the chart is the approximate amount that you will receive each year from TVA for a 10 year period! Please check with your utility company to find out about any incentives available to you. More information regarding the TVA Green Power Switch Generation Partners program can be found at http://www.tva.com/greenpowerswitch/partners/.
The tax credit and depreciation examples above are only meant to serve as examples and may or may not apply to your specific situation. Green Point cannot guarantee that all tax incentives can be obtained by our customers. Please check with your tax professional to verify what sort of tax incentives are available to you. Also, the Georgia state tax credit requires pre-approval by the state and total credits for all taxpayers in the state is limited to $2.5 million per year, so reserve early.
The prices mentioned above are not price quotes and are only intended to give you an idea of estimated cost. Please contact us to request a price quote or for additional information.
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