What would an average home solar power system cost with Randolph Community Solar?
COMPARING SYSTEM COSTS
The average installed cost of a home solar power system in Vermont in 2013 was $4.22 per watt, and the average system size was about 5000 watts. Given our solar share size let's a 4.7 kW system as an example for comparison. Total cost for this solar power system installed at your home would be about $20000. There is a 30% federal tax credit available that would lower the total out of pocket cost to $13958. This cost is much lower than it was a few years ago, but is still out of reach for most Vermonters. It would require 12.5 year to payback the initial investment (less the tax credit).
The cost of a 4.7 kW section of Randolph Community Solar Farm is significantly less because many of the project costs are shared. For the Randolph cooperative project cost is projected to be $2.75 per watt. So 5 shares or 4.7 kW of solar will cost about $13500, less the 30% federal tax credit yields a net cost of $9600. This community approach saves ~$5000 on a typical home solar power system.
Note that the the RCS cost is a bit less with the cooperative labor contribution, ($2.59/watt). If you are willing to help us get the project up and running, you will save a few hundred dollars more.
PAYBACK and RETURN ON INVESTMENT
Five shares, which is enough solar power to cover a GMP rate one $90 average monthly electric bill, will cost about $9600 after the federal tax credit. Simple payback is less than 10 years. Return on investment, assuming stable electric rates, would be over 11% annually. If electric rates increase ROI will be higher.
A better deal for Businesses
Most Vermont small businesses will be eligible for an additional 7.2% investment tax credit for the purchase of RCS shares. Businesses can also use the federal MACRS tangible investment depreciation to save an additional 10 - 20% of their share costs over 5 tax years depending on their federal tax rate. All together, a profitable business could regain more than 50% of their share purchase cost through these federal and state tax incentives. Consult a tax professional for a full accounting of these tax incentives.
AN Even Better Deal if you Only if you have a small electric bill
If you need a small solar power system custom built for your home, your cost per watt increases when as the size of the system decreases. This is because it takes a solar contractor almost as much time to install 8 panels as it does 16 panels. Home systems under 4 kW increase in price per watt as the size decreases. Where a 5 kW system may be $4 per wall ($20000) a typical 2 kW system will be about $6 per Watt ($12000).
Randolph Community Solar Shares are the same price. Whether you buy 1 share or 10 shares, each costs $2600, or $2.75/watt.
INVESTMENT SECURITY
Solar electric arrays are both reliable and simple to maintain. Our project will be insured and built with service in mind. Each share will deliver about $220 per year GMP credit every year. This makes the shares a valuable tangible asset, and they can be sold by the members without restriction. The solar farm will require a small ongoing investment of about $25 per share annually. This fee will cover taxes and insurance and build up a small reserve that will support the project for its expected 30+ year life, and will include money to dismantle the array when it eventually becomes less productive or obsolete.