Solarize – Costs and Incentives
How does Solarize save you money?
Through an agreement reached with Catamount Solar, they will reduce the price of the solar installation for everyone based on quantity of agreements. Through bulk sales Catamout can reduce their overhead costs and pass the savings down to the consumer. Working with the community volunteers helps raise more awareness about the program allowing Catamount to do what they do best, install solar arrays. This again helps creates more savings which are passed onto future solar homeowners!
Tiered Pricing System
The pricing for a solar installation is unique to each household and is based on how much money you spent on electricity annually.
There are 5 Price Tiers for Solarize 2016. We will move up into the next tier when more people sign up for a solar installation. The average size of residential solar array is 6kW. Based on the average size of an array it may take as little as 30 signs ups for us to get to tier 5!
|Tiers||Tier 1||Tier 2||Tier 3||Tier 4||Tier 5|
|Total Solar Capacity Reached||0-30kW||30-70kW||70-120kW||120-180kW||>180kW|
- 30 % Residential Renewable Energy Tax Credit
A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology.”- http://energy.gov/savings/residential-renewable-energy-tax-credit
- Solar Production Credit
This solar production credit may expire in 2017 with the new solar regulations. “The customer shall receive a monthly credit for the gross generation recorded by the additional meter at a rate of $0.053 per kWh if the solar net metering system is 15hW capacity or less and $0.043 per kW for all other systems”- Page 13 http://www.greenmountainpower.com/upload/photos/426Self-Generation_and_Net_Metering_1-1-2015.pdf
|W/O Solarize||Tier 1||Tier 5|
|Basic System Price (no adders)||$20,280||$19,500||$18,200|
|30% Federal Tax Credit||$ 6,084||$ 5,850||$ 5,460|
|Net Customer Cost||$14,196||$13,650||$12,740|
With the Green Mountain Power’s $.053/kWh “Solar Adder” incentive: estimated 6,200kWh x $0.20 = $1,240/year power credit
Estimated 9 to 10 year payback (including utility rate escalation)
Catamount can assist you with identifying financing options Through various sources via both secured and unsecured loans from leading institutions, including:
–VT State Employees Credit Union (VSECU) VGREEN Program – see www.VSECU.com
–Mascoma Savings Bank – see www.Mascomabank.com
–Property Assessed Clean Energy (PACE) Program – see www.efficiencyvermont.com
–Your own local bank (home equity loan)