Ask Focus on Energy

It’s possible . It depends on three variables.

With solar electric system prices declining and the value of electricity increasing, solar electricity is Wisconsin's fastest growing renewable energy market. Many people are interested in using renewable energy to meet their home or business energy needs. A simple payback of ten years for the installation of a solar electric system in Wisconsin should be possible if three variables are optimized—system costs, financial incentives, and the value of the system's production. However, in most situations the payback period will be greater than ten years.

As you consider your solar electric project keep in mind that solar electric system prices vary by about 25 percent depending on the installer, complexity of the installation, type of modules, system size, and more. Incentives can also vary greatly—between 0 to over 60 percent of system costs and are dependant on system ownership, electric utility provider, system size, type of business, and more. If the system is over 20 kW and sells power to the local utility, the value of the generation equals the marginal cost (a few cents per kWh), if it offsets your power needs beyond the utility meter than the value of the generation varies as widely as your electric rates.

Visit the renewable energy area of our website for a plethora of information about solar electric systems. And please remember, to qualify for renewable energy incentives from Focus on Energy, eligible customers must submit a completed incentive application and receive Focus on Energy approval before purchasing, ordering, or installing any equipment or services. It is also important to maximize the energy efficiency of your business before you purchase any renewable energy system. The smaller your energy needs, the lower your monthly energy bills—and the less you’ll need to spend on a renewable energy system that’s capable of meeting your needs.
 

Published Wednesday, August 18, 2010