Tuesday, June 30, 2009
As Randy Pacheco and Joel Baker start installing major components for our 3KW Solar Voltaic electrical system I thought I would give you a little financial analysis that we did for this project. Most of the numbers are derived from our annual usage of electricity. We had been paying for premium wind power but will no longer do so.
The negotiated cost of the system we are installing is $23,944. 30% of that total or $7,183 will be returned to us via a federal tax credit at the end of the year. Another 10% or $2,394 will be returned to us from a New Mexico tax credit at the end of the year. So, we get the system for $14,366. Also, we will not have to pay gross receipts tax because of a new law passed by the legislature. That saves another $1,400 or so.Now, we need to calculate the payback for that amount of cash we are shelling out. This is the work sheet provided by our installer, Sunergy. Click on it to make it big.
Essentially it shows a 10 year payback for our investment at today's electricity rates. We can be pretty sure as rates go up that the payback will occur sooner. Also, we will cause our contribution of CO2 moving to the atmosphere to be reduced by almost 4 tons per year.