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Sample Financial Analysis
| Tax Credit Analysis | |
| System Cost | $18,693 |
| 30% Fed tax credit | $5,608 |
| subtotal after Fed tax credit | $13,085 |
| 35% State Tax credit | $5,000 |
| Subtotal after State Tax Credit | $8,085 |
| Total credits and savings | $10,608 |
| Net System Cost after credits | $8,085 |
| System Specifications | |
| System size (kW DC STC) | 2.80 |
| System size (kW AC CEC) | 2.40 |
| Cost Per Watt (DC ) | 5.8 |
| Monthly output (kWh) | 424 |
| Yearly output (kWh) | 5,085 |
| Financial Analysis | |
| MECO "R" Rate kWh Cost | 29¢/kWh |
| Avoided energy cost per month | $123 |
| Avoided energy cost per year | $1,475 |
| Total tax incentive for the project | $10,608 |
| % of project cost covered in tax incentives | 57% |
| Estimated payback period | 5 years |
| Total positive cash flow after 10 years | $10,991 |
System Summary
In this example the state tax credit is taken as a credit against state. 35% of $18,693
would be $6,542, but it is limited by the tax credit cap of $5,000 per system per year.