System Cost
Understanding the Cost of Solar Systems
Solar Thermal
| Low Initial Cost – $7500 for 80 gallon hot water system | |
| Return On Investment | |
| Fast Pay Back, 2.5-4 Years | |
| Hawaii Energy Rebate | $1,000 |
| Out Of Pocket | -$6500 + tax |
| Federal Tax Credit 30% | -$2041.88 |
| State of HI Tax Credit 35% | -$2382.19 |
| Net Cost | $2382.21 |
| Avg Monthly Savings | $100 |
| Cost/Avg Savings | Approx 23.82 Months |
| Or 1.98 Years | |
| To Get Your Net Cost Back | |
Thermal Solar Saves More |
|
| In Years To Come. | |
| Here’s Why: | |
| Say, the typical system can save $50 per month at first. When the kWh rate doubles in 10 years, your thermal solar system will save you $100 per month and still make 120 gallons of hot water a day. | |
Photovoltaic
| High Initial Cost – $10,000-50,000 | |
| Return On Investment | |
| Long Pay Back, 8-14 Years | |
| Initial Cost, Typical 3 Phase Buildup | $36,000 |
| Tax Credit Federal 30% State HI 35% | $23,400 |
| Net Cost | $12,600 |
| Avg Monthly Savings | $135 |
| Cost/Avg Savings | Approx 93 Months |
| Or 7.8 Years | |
| To Get Your Net Cost Back | |
Solar Photovoltaics Save You |
|
| Less At Time Goes By. | |
| Here’s Why: | |
| Most P.V. panels come with a 25-year warranty for 80% output. So, expect a 10-15% loss in performance in 20 years. The good news is that P.V. panels should last about 50 years and still have an output of 65-75% efficiency. Inverters are expected to last 10-15 years; twenty-year extended warranties are also available and is probably a good idea. | |
So, by the time a photo-voltaic system pays you back once for your investment, a Solar Thermal hot water will have paid you back 7 times!
We do recommend photo-voltaic systems, but we also recommend that you start with a solar thermal hot water system first. This way, you are able to reap the rewards and get paid back while or before you are ready to install a photo-voltaic system.