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:

• Tax credits are like cash.  A 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 only $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.