Solar Energy Return on Investment Calculation

Estimate predicated on:

• 5 KW Photovoltaic (PV) system and an 80 gallon Domestic Hot Water system with a 25 year life. Solar system investment from $27,000-$35,000.

• 3BR/2BA home

• 5% increase in electricity combined with inflation

Historical electricity and inflation rates facts

• 4.75% annual electricity increases- actual average from 200-2008 according to Department of Energy
• 2.12% annual inflation from 1985-2009

Solar Energy Return on Investment Results Summary

First Year Savings- $1831/ Tax Free

Average Yearly Savings over the life of the 25 year warranty period-$3494.84/ Tax Free

Increased Property Value-$69,896.80

Simple Payback Period- 7.74 Years

Annual Rate of Return- 12.9%