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A solar electric system can be a substantial investment - careful planning will help ensure that you make the right purchasing decision and enjoy the many benefits of "plugging into the sun."
Current incentives in New York can reduce the cost of purchasing and installing a system by over 50%. Systems in NYC are typically installed for under $3.75 per watt after all rebates and tax incentives. Standard residential systems are 2,000-4,000 watts (2-4 kilowatts) and cost consumers $7,000-14,000. Commercial systems are typically 10 kW and larger. Special below market-rate loans are available to finance the cost.
Each watt of PV will produce over 1.1 kWh every year " or about $0.15-$0.20 of power at today’s prices. A system purchased with financing over 20 years, will cost about the same as regular utility power assuming prices stay constant with inflation. However, with increasing natural gas and oil prices, it is probable that the system will save you money in the long-term.
The New York State Energy Research and Development Authority (NYSERDA) administers the state incentive program. NYSERDA rebates the cost of a PV system by at least $4 per watt, and buys down market rate loans by 4% over the first 10 years through the Energy $mart Loan Fund. For a better understanding of how this works, see the clean power estimator below.
You can contact us for more information on incentive programs. Your solar installer will help you navigate the incentives when you purchase a system. For information directly from NYSERDA, see www.powernaturally.org.
CLEAN POWER ESTIMATOR
To see how the economics of purchasing a solar system might work, go to the NYSERDA Clean Power Estimator. The following instructions should help:
Small Residential (e.g. stand-alone homes, rowhouses and brownstones)
After entering your zip code, choose "Residential" from the pull-down menu and click "Run Program". Change the following parameters:
Under PV System
Size: 3.0 kW
Under ASSUMPTIONS
Inflation Rate: 2.0% per year (rate increasing in line with inflation)
New Loan Life: 20 years
Loan Rate: 6.00%
Life of Rate Reduction: 10 years
Now, under "View Different Results" at the top of the page, look at
- "Monthly Savings and Costs" - you’ll save a few dollars a month.
- "Cumulative Discounted Cash Flow" - over 20 years the system will cost a bit less than utility power.
Of course, this doesn’t take into account all the good things you’re doing for the environment, or the commitment you’re making to a healthier city with fewer power plants and cleaner air.
Notes: You can adjust other parameters, but these settings are the most universally applicable. Even if you have a flat roof, you probably don’t want to choose this option, since the solar modules will likely be installed on an angle facing south, thus capturing a greater portion of the sun’s energy than if they were lying flat.
Commercial
Go to the NYSERDA Clean Power Estimator, enter your zip code, choose "Commercial" from the pull-down menu and click "Run Program". More detailed instructions are coming soon.
Commercial systems are typically a bit larger than small residential systems - because of this, they typically cost a bit less per kilowatt. If you wish to install a system under the standard NYSERDA incentive program, however, it will need to be under 15 kW. There are other NYSERDA incentives for larger systems, but they require special applications. Contact Us for more information.
Note: There is no net-metering for commercial systems in New York State. We are working to change this. But for now, to ensure that you get the full financial benefits of a commercial system, it is wise to size it no larger than your minimum daytime base load.
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