Photovoltaic Cost Example:

A typical bottom line cost for a turn-key installation of a photvoltaic system is $5,000 for a 2KW system.

Details:

• 2KW (or 2 Kilowatt) is a small starter system that would provide electricity with a value of approximately $45 per month.
• This sized system would cost approximately $14,000 before taking advantage of tax credits.
• The federal tax credits are 30% or approximately $4,200.
• The NC State tax credits are 35% or approximately $4,900.
• The bottom line cost, after credits comes to approximately $5,000.

The typical 2 KW Photovoltaic (PV) system will include:

• 10 collector panels of 16 square feet each or 160 square feet of collector panels.
• Inverter, wiring, tie-ins, etc., for a complete turn-key installation.
• All electric work performed by a NC licensed electrician.

Value / Payback:

• Most customers sell their solar electricity back to the grid, and get a total of about 20 cents per KWH (Kilowatt Hours).  
• This represents 5 cents for the electricity, and 15 cents for the "Renewable Energy Credits". 
• A 2KW system produces (on average) about 7.5 KWH per day or 225 KWH per month. At 20 cents per KWH this comes to $45 per month, yielding a simple payback of 9.25 years.

Tax Credit Notes:

• A tax credit of $1000 is the equivalent of $1000 in cash. (Tax credits should not be confused with tax deductions where a $1000 deduction might be worth $280.)
• Tax credits are dependent upon having tax liabilities, and can vary dependent upon income level and other factors. Customers should consult their tax advisers. However the tax credits quoted above are available to the vast majority of customers that install solar systems.