David Allen Chelsea Ann Atwater and Dean Howard Smith

Investing in Your Future: Is a Solar Panel a Worthwhile Investment?

Crystal Ballentine

Nicholas Ratliff Dean Howard

Smith NO

Investing in Your Future:With Current Arizona Policy a Solar Panel is an Unlikely Investment?

Crystal Ballentine Kayla Priest Nicholas Ratliff Dean Howard

Smith

A good deal Sunset 1/1/08 No federal

policy in 2008

Gary Tallman and Dean Smith

Bud Annan Sean Seitz Health Symonds Kris Mayes Bruce Johnson Tom Acker Earl Duque Susan Williams Jason Campbell

http://www.dsireusa.org/index.cfm An amazing database Created in 1988, the North Carolina

Solar Center serves as a clearinghouse for solar and other renewable energy programs, information, research, technical assistance, and training for the citizens of North Carolina and beyond.

http://www.energy.gov/taxbreaks.htm installing residential photovoltaic upgrade thermostats, to caulk leaks, or to

stop energy waste. Consumers can receive up to $200 credit for

installation of new exterior windows. http://www.energystar.gov/index.cfm?

c=products.pr_tax_credits

2912 watts (almost 3kW) $22,393 installed Local contractor and

employees Visit the Arizona Solar

Center http://

www.azsolarcenter.com/

Retail Cost

APS

$3 (x) DC watts Az Tax Credit

Federal

Tax Credit

30%

Out of Pocket

Expense

22,393 - 8,736 - 1,000 -6,418 6,239  

This “should” result in an increase in the value of the property. No, I didn’t have the house reappraised in

case it actually went down! Add 11% Lose 40% Yuck

August 2007-October 2008 14 months 6100 kilowatt hours produced 436 kWh/month on average Variable APS costs 11.269 cents/kWh $49.13/month savings $590 savings per year

Out of Pocket $6,239

PV of savings $7,864

NPV is POSITIVE Assume 25 years,

5.7% discount rate*

25 year life: NPV is $1,625

* MarketWatch average US mortgage, January 25, 2009

Simple Payback Period of $590/year 10.6 years FREE electricity thereafter

Internal Rate of Return IRR is 8.26% How did your retirement accounts do last

year?

NOx SO2 Particulate CO2

15 years 691 708 397 162,454

20 years 921 944 529 216,605

25 years 1151 1180 662 270,756

135 tons of CO2 avoidedEquivalent to 13,500 gallons of gasoline

Varying Electricity Rates 

NPV of  

Projected Savings minus Investment

0.10/kwh .11/kwh .12/kwh .13/kwh 0.14/kwh .15/kwh

25 years $640 $1,327 $2,015 $2,703 $3,391 $4,079

NPV of Projected Savings

minus Investment3.32% 5.7% 6.5% 7.5% 8.2%

25 years $3,810 $1,625

$1,053 $423 $32

Find a supplier: AZ Solar Center http://www.azsolarcenter.com/index.html

Negotiate a contract Negotiate with APS http://www.aps.com/my_community/

Solar/solar_35.html Install

Electricity Usage

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

10/2

3/19

95

4/23

/199

6

10/2

3/19

96

4/23

/199

7

10/2

3/19

97

4/23

/199

8

10/2

3/19

98

4/23

/199

9

10/2

3/19

99

4/23

/200

0

10/2

3/20

00

4/23

/200

1

10/2

3/20

01

4/23

/200

2

10/2

3/20

02

4/23

/200

3

10/2

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4/23

/200

4

10/2

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4/23

/200

5

10/2

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4/23

/200

6

10/2

3/20

06

4/23

/200

7

10/2

3/20

07

4/23

/200

8

10/2

3/20

08

The Smith House 1995-2009

Monthly Average

$78.10

$48.88

$38.82

$10.01

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

10/95-12/98 6/98-12/01 1/02-7/07 8/07-12/08

Obviously the information in the Arizona case is useful.

Make the paper available via the FCB working paper series

Make the paper available via the SES web site

Share the paper with the Arizona Solar Center and the industry

Allow the Arizona industry to use the literature to attract customers

http://www.aps.com/main/green/choice/choice_7.html

Check out the solar only option!

David… Home Demonstration Software Working with local company