Let’s Talk Money.

“Going green” is a noble goal. But it’s so expensive!

…isn’t it?

It’s a common misconception that solar power is a luxury technology. Installing a solar-thermal system in your home may deliver significant savings in the long-term, but at what initial cost?

For New York residents, installing a new solar-thermal system usually costs less than $4,000.

Thanks to current federal and state tax incentives, prospective solar customers can expect to pay about 1/3 of the initial cost for a new system.

For example, take a 2-panel system costing $10,000.

A 2-Panel VELUX system.

NYSERDA (New York State Energy Research & Development Authority – website) offers both a tax rebate and a tax credit to residential solar customers. The rebate is good for $1.50 per kWh displaced annually, up to a maximum of $4,000.

Because the Radiant Store only installs top-quality, highly efficient systems, our customers are almost always eligible for the full amount.

Right away, we can reduce the effective cost of the system by 40%, to $6,000.

Now let’s consider the NYSERDA tax credit, distinct from the rebate, which is good for 25% of the cost of the system (after the rebate has been applied).

Combined with the 30% federal tax credit, we can further reduce the cost of the system by 55%.

So, to recap:

$10,000 (initial cost)

- $4,000 (NYSERDA rebate)

= $6,000

- 55% (NYSERDA & federal tax credits)

= $2700 total.

Still not impressed?

The Radiant Store is certified by the Building Performance Institute (BPI).

If you qualify (most do), we can send a BPI-accredited contractor to your home to perform a free energy audit. Known as a Comprehensive Home Assessment, the audit typically lasts between 1-3 hours and will identify areas where efficiency and safety improvements can be made. The CHA is useful in its own right, but what’s probably more interesting is that qualifying recipients of an energy evaluation are eligible for an additional 10% off the price of a solar system.

This discount is calculated before the tax credits and rebates, so it could shave another $1,000 from a setup costing $10,000.

So, quickly running the numbers again, we can see that the end cost of a $10,000 solar system for a qualifying CHA recipient ($10,000 – $1,000 – $4,000 – 55%) would be:

$2,250 total.

That’s without even considering the substantial monthly savings on heating and utilities one can expect from converting to solar. In fact, solar-thermal systems tend to pay for themselves within 3-5 years. But that’s a topic for another post.

Have questions? Want to schedule a BPI home assessment? (Remember, they’re free!) Call us toll-free at 888-767-5309 or locally at 518-899-2791.

Alternatively, send us an e-mail (tmoag@theradiantstoreinc.com), write on our wall, or mention us on twitter.