Solar Economics

By combining the power of volume purchasing with the solar incentives the 1BOG program makes solar energy comparable or cheaper than traditional electricity. Here’s how:

Cost of Solar

Typically solar installations cost approximately $9-10/watt of installed solar panels. This figure includes all costs (panels, installation, fees). The number of panels and total rated output are the primary cost drivers. The total number of panels you need for your home will depend on many factors including current electricity usage, shading, roof orientation, and economic objectives. Most residences typically require between 1 and 5 KW of solar. The total cost for an average 2.5 KW system would be roughly $25,000 before rebates.

Solar Incentives

Federal: Starting in 2009 the $2000 cap on the Federal Solar Tax Credit will be lifted and it will be 30% of the gross cost with no cap.  This rebate is a reduction of your tax obligation.  It is not a deduction, it’s a credit.  Good as cash and can be rolled over if you don’t have that tax liability.

State and Local incentives: Please check each 1BOG City’s page on this site for information about specific local rebates and government incentives, we’ll update these pages as news get in!

Volume Pricing

By aggregating residents together and negotiating volume purchase discounts on top of the Federal, State and City rebates we can reduce the cost of solar from $9-10/watt by $1-$2/watt. For a typical 3KW system, volume pricing can reduce your total cost by up to $6,000. On an after-rebate basis, this can reduce your net cost by up to 50%!

Financing Solar

Even after the rebates and discounts solar power is still a substantial investment for many households. 1BOG is working with financing partners to offer alternative payment options to participants. By leveraging rebates and group purchasing power, we can get the cost of solar on monthly basis lower than the existing average electricity bill. For example:

If your average monthly bill is $100-$150, you’ll probably need about 3 KW of solar panels. With new financing options you can ‘go solar’ and pay roughly the same amount (or even less) for solar, instead of paying your utility company. Plus the monthly finance amount is set in stone and will never increase. And after the loan is paid off the electricity is free!

Couple that with the fact that electricity rates have increased an average of 5.5%/year for the past 30 years and this investment gets better and better.

For detailed information on understanding solar, please visit our partner site Solar4SF.org.