Go green.Save the planet.
End foreign oil dependence.
Yaddie, yaddie, yadda.
The song is played out – get a new tune.
Yes, MasterPo is angry.
The dream and the reality simply do not mesh!
MasterPo has written before about this and needs to repeat it: The true costs of private solar energy for a home simply do not make financial sense!
Recently MasterPo went to the website for Renewable Energy Long Island (www.renewableenergylongisland.org) for a current quote on adding solar power to the house.
Here’s how it went: (dollar amounts rounded):
For a 100% solar system the estimated installation cost is $70,000 (not including tax).
Expected estimated rebate from LIPA $17,500.
State tax credit $5,000.
Federal Tax Credit $16,000.Income tax to be paid on the rebate (you have to pay a tax on a rebate?!) $1,400.
Expected estimated rebate from LIPA $17,500.
State tax credit $5,000.
Federal Tax Credit $16,000.Income tax to be paid on the rebate (you have to pay a tax on a rebate?!) $1,400.
Total out-of-pocket cost to MasterPo: $33,000
Further, it is estimated to add $56,000 in value to my house which might be added to MasterPo’s property tax (if MasterPo’s town chooses not to follow the New York State 15 year moratorium on taxing solar system installations – any bets?).
This is a bargain??
For a 75% solar system the numbers are:
Installation $53,000
Rebate $15,000
State tax credit $5,000
Federal tax credit $11,500
Income tax on rebate $1,400
Rebate $15,000
State tax credit $5,000
Federal tax credit $11,500
Income tax on rebate $1,400
Total out-of-pocket cost $23,000
Added property value $42,000
Added property value $42,000
And for a 50% system:
Installation $35,000
Rebate $10,000
Rebate $10,000
State tax credit $5,000
Federal tax credit $7,500
Income tax on rebate $1,400
Federal tax credit $7,500
Income tax on rebate $1,400
Total out-of-pocket cost $14,000
Added property value $28,000
Added property value $28,000
Where is this a good deal?!
Of course, the website “suggests” taking out a loan to finance the balance of the system. So now a person has to go into debt for all this too?
And the paperwork – Oh Lord! The paper work! – for filing for the utility company rebate and approves is a nightmare! Supposedly the contractor will help but still a bureaucrat ’s dream!
MasterPo has nothing against solar power per se. But come on!
In an economic crunch like now who in their right mind takes on costs and debt like this?!
Posts
1 comment:
Solar on a large scale just does not make sense for your home. Personally, if it is 50K - 70K for the system the amortization is still more expensive on an annual basis than paying your electric bill every year over the course of your 30 years in your home (excluding tax credits, etc).
I personally feel that a smaller system that augments your existing system that can be used in an emergency or on an as needed basis in good times to not add to your existing electric bill.
Post a Comment