Solar Energy Costs For Mc Gehee Kelsey

THE COST OF GOING SOLAR FINANCING SOLAR PANELS AND SOLAR THERMAL TECHNOLOGIES By Kelsey Zeitzer

What’s Solar Energy Solar energy creates useable power form sunshine Photovoltaic or PV uses sunlight to generate electricity Thermal solar uses sunlight to heat water

- Sunlight absorbed & energy generated PV cell: convert solar energy into electrical power Takes energy - convert PV (DC) into energy that can be used at home (AC) - less efficient sunlight to electricity conversion rate at 12% Require a lot of space & collectors 5Xs + costly than thermal Usable year round heating water & storing it number of different solar thermal designs More efficient use up to 70% of the suns energy requires less space & fewer collectors difficult to add passive solar collectors to existing buildings you will have to use an active system which means larger storage tank 5Xs cheaper than PV Wont work all year round Solar Cells Or Photovoltaic (PV) Solar Thermal Energy

Who Solar Energy benefits The Environment! Solar energy reduces amount of fossil fuel being burned reducing the pollutants & CO2 polluting the atmosphere You! - Reduces your energy bill Federal, State & utility financial incentives Adds value to property Gain energy independence Good investment in a sustainable future for yourself & your loved ones The Community! safer: improves national security Protects future generations Helps the economy!

Solar PV installation costs Commercial based solar electric systems Typically cost: $25,000 to $350,000 installed Multiple variables influence the cost of these systems: Amount of utility grid power to be offset Selected type of system Mounting options Third party financing available

Solar thermal installation costs Commercial water heating systems Typically cost: $15,000 to $250,000 installed Multiple variables influence cost of these systems: Amount of water to be heated Desired water temperature Selected system collectors Desired function(s) of the system Typical payback period for solar hot water heating systems is 6-8 years Third party financing is available

Federal Tax Credit: Business Energy Investment Tax Credit (ITC) Corporate tax credit 2005: Energy Policy Act S.48: Energy Business Energy Tax Credit Oct. 3, 2008: Economic Stabilization Act of 2008 179D: Energy Efficient Commercial Buildings Tax deduction Allow AMT (alternative minimum tax) filers to take credit 30% tax credit of expenditures Extended for 8 yrs --> until Dec. 31 2016 NO maximum credit Eligibility: Technologies: Solar water heat, photovolatics ect. Equipment used to:Generate electricity,heat/cool structures,provide solar process heat

LA Credit:Business Energy Investment Tax Credit (ITC) Corporate tax credit Allow AMT alternative minimum tax filers to take credit 30% of tax credit of expenditures Max: fuel cells $1,500 per .05kW Eligibility: Technologies: solar water heat, photovolatics etc. Equipment used to: generate electricity, heat/cool structures, provide process heat

Energy Efficient Commercial Buildings Tax Deduction Corporate deduction Commercial, construction, state gov, fed gov Energy Policy Act 2005 Tax deduction for energy efficient commercial buildings Extended through 2013 Eligibility Technologies: water heaters, lighting, lighting controls / sensors, chillers, furnaces, boilers, heat pumps, air conditioners, etc. Ranging from $0.30-$1.80 pr sq-ft depending on technology & amount of energy reduction

MACRS + Bonus Depreciation Corporate deduction Modified Accelerated Cost Recovery System (MACRS) Business recover investments in certain property via depreciation deductions Property includes: Solar electric & solar thermal technologies etc. Federal Economic Stimulus Act 2008 50% bonus depreciation provisions for renewable energy systems American Recovery & Reinvestment Act 2009 Provision from 2008 extended to 2009 Requirements: Recovery of 20 years (or less) under normal fed. Tax depreciation rules Taxpayer must claim deduction Solar technologies acquired 2008 or 2009 Solar technologies working by 2010

Property Tax Solar Systems are an asset that add value to your property The value of solar energy systems are not subject to property tax in Louisiana

Calculating the payback time Years to Breakeven net cost - property value increases “ pre-tax” average annual utility savings = years to break even Break Even point: Costs / expenses = revenue NET = ZERO (no net loss or gain) EX) you spend $40 you make $40

Years to Break Even EX) Solar Panels Entergy bill: 1,000 a month Solar Panels cost: 10,000 Save money over time So the years to break even is how many years it would take to get a net zero (recoup costs) Hybrid Cars Cost extra but your not paying as much for gas So if gas is cheep than the years break even will be longer but if gas is expensive then the years to break even will be short

Years to Break Even (cont) “ pre-tax” average annual utility savings: how much your not spending on Entergy Net cost - Property value increases Saving $2 $10 - $5 = 5 Property value increases by $5 Property value increases: property value increases with solar panels Net cost: what its worth to put on solar panels = Years to break even (Net cost - property value increases) (“Pre-tax” average annual utility savings) What it means (Net cost - property value increases) (“Pre-tax” average annual utility savings) $10 - $5 $2 = Years to break even = 2.5 years Example $10 for solar panels

McGehee Energy Costs Date Building Account # KW pr Month Price 8/18/08 2343 Prytania 1286158 66600 $7,817.41 9/11/08 2343 Prytania 1286158 49800 $7,119.57 10/16/08 2343 Prytania 1286158 80000 $11,693.63 11/11/08 2343 Prytania 1286158 60000 $7,690.39 12/11/08 2343 Prytania 1286158 49000 $7,547.29 1/12/09 2342 Prytania 1286158 73600 $8,686.29 2/13/09 2343 Prytania 1286158 62800 $7,501.12

Average Monthly Bill Cost $8293.67

Average Kilowatts per month 63,114.29 kW/Month

What to examine Estimated system size Estimated system cost Financial incentives Savings and benefits

Summary Renewable Technologies in the future Help the economy More domestic jobs that cannot be outsourced Less money spent on foreign oil and natural gas Help the planet Our planet needs responsible inhabitants Energy costs are going to keep going up Energy self sufficiency is key for financial freedom Investing in solar technologies will help you gain financial freedom

Works Cited “ Business Energy Investment Tax Credit (ITC). ” DSIRE: LA Federal Incentives for Renewables and Efficiency. February 18 2009. April 23 2009. < http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US02F&State=federal&currentpageid=1&ee=1&re=1 >. “ Commercial Solar Electric Power (PV). " APS: Alternative Power Solutions. 2008. April 26 2009. < http://www.apowersolutions.com/index.php?p=1_5_Solar-Electric-Power-PV- >. “ Commercial Solar Water Heating. ” APS: Alternative Power Solutions. 2008. April 26 2009. < http://www.apowersolutions.com/index.php?p=1_6_Solar-Water-Heating >. Dan. “ Solar Thermal vs. Solar PV. ” CalFinder: residential Solar Power Contractors. July 30 2008. April 26 2009. <http://solar.calfinder.com/blog/going/solar-thermal-vs-solar-pv/>.

Dan. “ The Lowdown on Solar Thermal Savings. ” CalFinder: residential Solar Power Contractors. May 28 2008. April 26 2009. < http://solar.calfinder.com/blog/solar-information/the-lowdown-on-solar-thermal-savings/ >. “ Energy Efficient Commercial Buildings Tax Deduction. ” DSIRE: LA Federal Incentives for Renewables and Efficiency. October 7 2008. April 23 2009. < http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US40F&State=federal&currentpageid=1&ee=1&re=1 >. “ Financing Solar & Energy Efficiency Projects. ” Solar Estimate: Local Solar Pros to Help You put Solar Energy to Work. 2000-2009. April 23 2009. <http://www.solar-estimate.org/index.php?page=rightforme&subpage=finance>. “ How do you calculate the payback time? ” Solar Estimate: Local Solar Pros to Help You put Solar Energy to Work. 2000-2009. April 23 2009. <http://www.solar-estimate.org/showfaq.php?id=9&fromsearch=1>. Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009). ” DSIRE: LA Federal Incentives for Renewables and Efficiency. February 19 2009. April 23 2009. < http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US06F&State=federal&currentpageid=1&ee=1&re=1 >. 23 2009. < http://www.conergy.us/desktopdefault.aspx/tabid-2343/ >.

“ My Solar Estimator. ” Solar Estimate: Local Solar Pros to Help You put Solar Energy to Work. 2000-2009. April 23 2009. < http://www.solar-estimate.org/index.php?verifycookie=1&page=solar-calculator >. “ The American Recovery and Reinvestment Act of 2009 (Recovery Act). ” U.S. Department of the Treasury: American Recovery and Reinvestment Act. May 5 2009. April 23 2009. < http://www.treas.gov/recovery/ >. “ Thy Solar? ” Conergy USA: Renewable Energy. 2008. April

Solar Energy Costs For Mc Gehee Kelsey

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