ConEd Customers Get Great Deal for Solar Power

There is enormous push for renewable energy development as particularly evident in the Stimulus Bill. It is well understood at government level that Renewable Energy sources are needed to reduce our dependance on oil, reduce our carbon dioxide output and the effects on climate change, and to meet our energy needs for the future.

Solar Power (aka PhotoVoltaic, PV) is the #1 favorite of the renewable energy alternatives for a number of reasons including that it can be deployed on home and building rooftops without placing a new burden on existing infrastructure, and it can be ‘farmed’ in desert or low use regions.

So, there are many financial incentives to help make it attractive to residential and commercial building owners. But, there remains the difficulty of understanding the various incentives and how to use them.  Many states offer rebates; many states do not; the federal government offers a tax credit; some states also have tax credits; some do not.

New York State has some the most attractive incentives. And the incentive for Solar PV becomes greater when the cost of electricity is already high.  Rebates and tax credits combined help bring the cost of electricity down to about 20 cents per kWh (kilo-watt hour).

For NYSEG customers the attraction isn’t instant as their current residential rate for electricity is about 14 cents/kWh. But for Con-Ed customers in Westchester – who are paying 20 cents/kWh – Solar PV makes economic sense even now. (BTW ConEd customers in NYC pay 25 cents/kWh – making converting to Solar PV a ‘no-brainer’). 

So, what is the great deal for ConEd customers? Let’s use a typical Solar PV system size of 7.2kW to show it to you:

 

Approx. System Price (fully installed):  $        60,000 State Rebate  $     (18,400) Cost after rebate:  $        41,600 Federal Tax Credit (30%):  $     (12,480) NYS Tax Credit (25%, max $5000) ($5,000) Customer Net Cost (after rebate & tax credits):  $        24,120

 

 

A system this size produces $1800 worth of electricity in the first year. And ConEd customers are also elegible for a Smart Loan that takes 6.5% off a Home Equity Loan Rate.

This means that annual savings generated by the Solar PV system would be more than the annual cost of paying for (or financing) a Solar PV system. And the savings improve each year as electricity rates increase.

So, the opportunity exists currently to help the environment, help alleviate overall enery needs, and generate economic savings for your home in the short and long-term.

Want more information? Ian Diamond (914) 419-3134