To install solar or not...
Hello all, I live in Ocean County New Jersey.
Early last week, a gentleman knocked on the door offering to talk with me about installing a solar system on my house with little cost to me… He works for one of the top 5 companies that I recognize, and is pushing the NJ Clean Energy program.
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Currently, my average monthly bill for 12 months is $94, 7710kw usage… Say $1,200 a year.
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Solar system installed will be a 7mw system.
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With this program, I am paying off a loan of the total system. My bill will be $144, fixed, with some variables I’ll explain below.
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The total system costs $32,760. Mosaic bank holds loan to do installation, permits equipment, everything…
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For 2017 taxes, I will get 30% back from the FED on this program @ $9,828, leaving me $22,932 to take care of.
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In addition to this system, I will be enabled to obtain SRECs for a total of 15 years. In NJ the market is variable. Anywhere from $190-290 per SREC. 94% offset, leaving me 260kw to pay the utility company for each month. Each 1000kw the installed system creates, I obtain 1 SREC… total of 7ish a year… @ $1400 a year gained.
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I need to apply all the SRECs I have obtained within the first 18 months and the $9,828 tax credit to the loan. This will drop my $144 a month bill $10-20ish. In 18 months, I estimate 10 or so SRECs @ $200 each = $2000 + $9,828 = $11,828… $22,932 - $11,828 = $11,104… First 18 months paid out of pocket @$144 = $2,592 – $11,104 = $8,512.
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If I dedicate all the gained SRECs to the bill, if they stay at a decent trade price, I can have this loan paid off within 7ish years, and have the remaining years to gain SRECs to pocket, and a small electricity bill @ $15+/- a month.
Thoughts?
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