The following chart shows how we are paying for our 3.45kw Solar installation. The top part of the chart originally showed the rebates and loans that we are using to pay for the array and how much we have paid back so far using the money we have saved and earned from the array. Currently we have collected all the rebates and paid of most of the loans.

The total system costs was approx $26,400. State and Federal tax rebates added up to $8,920. We finished collecting all of the tax rebates in Nov 2011 so I've dropped that column from the chart.

We borrowed 25% of the initial cost ($6,600) from the power company at 3% over 5 years. The loan principle, plus interest and application fees, comes out to $7,115.40. We also put $8,800 on a credit card using a 0% for 1 year promotional rate and we financed the rest out of pocket. We finished paying off the credit card in May of 2012, so we are no longer displaying this on the chart.

The Performance Based Incentive (PBI) is $15,840 paid back at 18.7 cents per KWh generate.

Our power company charges 12.17 cents per KWh. If we pull more from the grid than we push on an annual basis, that is what we have to pay. However, if we push more annualy than we pull, the power company pays us for the surplus at their "avoided" rate, basically wholesale costs. This varies depending on the price of coal, etc. Last year they paid us about 4.5 cents per KWh.

That takes care of the top part of the chart. On the lower part we show income and payments.

The Electric Bill savings are how much we save each month minus the extra costs for Net Metering. Net metering costs an extra $2.70 a month, but in addition to the savings on energy we also save about $7 a month in taxes and surcharges on our electric bill, which more than offsets the cost of net metering.

We then use this income/savings to pay off the loan from the power company and the credit card (now paid off). Anything left after that we use to pay back ourselves :-)
Performance Based
Incentive
SSVEC Loan Cash
Investment
Original Amount $15,840 $7,115.40 $5,300
Currently Outstanding $10,035.50 $948.72 $2,285.61
Estimated Payoff Date Jan 2021 Mar 2015 Sep 2015
Income / Savings Loan Payment / Cash Back
Current Year PBI Elec Bill Total SSVEC Loan Cash Back
Jan $96.12 $69.92 $166.04 $118.59 $47.45
Feb $105.28 $57.57 $162.85 $118.59 $44.26
Mar $99.67 $50.57 $150.24 $118.59 $31.65
Apr $143.06 $49.57 $192.63 $118.59 $74.04
May $137.26 $48.57 $185.83 $118.59 $67.24
Jun $136.32 $77.51 $213.83 $118.59 $95.24
Jul $109.02 $71.89 $180.91 $118.59 $62.32
Totals $826.73$425.60$1,252.33$830.13$422.20
Energy banked this year = 1296 kWh,     Since last true-up = 1706 kWh
Previous years
2013 $1,366.23 $820.06 $2,186.29 $1,423.08 $763.21
2012 $1,437.84 $894.76 $2,332.60 $1,423.08 $625.83
2011 $1,436.35 $772.88 $5,980.67* $1,423.08 $0
2010 $737.35 $414.29 $6,367.64* $1,067.31 $1,249.09

* Includes state and Federal Tax Rebates.
We've decided to take the 60% PBI from the power company instead of waiting for the 50% rebate, The PBI is available now, but the waiting list for the rebates is currently about 3-4 years. Because the PBI is paid out over 15 years, and is declared to the IRS on a 1099 each year, it get's taxed as income and doesn't reduce the initial cost for figuring the Federal tax rebates.