LeapEnergy Investment and Trade LLC is an energy company that develops renewable power solutions on distributed generation (DG) platforms focusing on end-use grid-tied and off-grid applications. The company is actively innovating through integration of proven technologies for off-grid export markets.
By historical accounts, electric rates increase between 3 -5% annually. The home owner has the following advantages by using solar power. The example given below for Tennessee it has components that apply to other states. Hedge against future rate hikes.
The home owner invests a certain amount to have the installation of the solar PV. Once installed he/she pays less than or equal its current utility bill for a short period of time.
Sale price for homes with solar systems sell an average of $17,000 higher.
Homes with solar systems sell 20% faster.
This system will produce an average of 8,322kWh annually which will offset 694kWh each month.
Total Installed cost: $14,900 (2014 price)
Federal Tax Credit: $4,470
Utility upfront Rebate: $1,000
Net Cost: $9,430
Your avoided utility cost would average $76.3 based on a rate of $0.11/kWh. TVA will contribute (called performance base incentive PBI) $0.04/kWh for 10 years which will give you an additional $27.8 per month. The avoided bill plus the PBI will net you $104 each month. Under this scenario, you will net $1,248 annually. The ROI is a mere 7.5 years. The best part is that you really did not pay any more than you would have paid for utility while ensuring you that after it is all paid for, you get to keep $76.3 every month that you would have to pay to the utility company. Remember that over the years that $76.3 would have gone up and up!