PAYBACK ON RESIDENTIAL PV SYSTEMS WITH 2009-2016 UNCAPPED 30% FEDERAL INVESTMENT TAX CREDIT

ResPVEconomicsWithUncappedITC_ASES09web.pdf (application/pdf Object)

PAYBACK ON RESIDENTIAL PV SYSTEMS WITH 2009-2016 UNCAPPED 30% FEDERAL INVESTMENT TAX CREDIT
http://www.ongrid.net/papers/ResPVEconomicsWithUncappedITC_ASES09web.pdf

The United States federal government enacted an extension and expansion of the 30% Federal Investment Tax Credit (ITC) for individual (residential) tax filers in October 2008. The expansion from a former cap of $2,000 on the ITC to the new uncapped full 30% ITC substantially reduces the net cost of ownership, and thereby dramatically improves the potential financial returns and benefits to many prospective customers. This paper presents revised and expanded financial analyses of residential cases presented in previous papers. It will
look at Internal Rate of Return (IRR) only (for simplicity of cross comparison) for the previously studied Northern California cases, accounting for the increase in the ITC and brought up-to-date with current electric tariffs, incentives (federal, state & local) and, as applicable, Solar Renewable Energy Certificate (SREC) values. The paper then expands coverage to additional US states (NJ, NC, CT, AZ, HI, CO), and also performs a couple of “what if” scenarios to illustrate the effects of changes in individual variables.