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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
3/20
03
4/23
/200
4
10/2
3/20
04
4/23
/200
5
10/2
3/20
05
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