Cost analysis of solar electric systems
Tax credits
Q: If I purchase and install a solar energy system am I eligible for tax credits?
A: Yes, SRP customers planning to purchase and install a solar energy system are eligible
for both state and federal tax credits.
State tax credit overview:
- Available to residential and commercial customers.
- 25%, capped at $1,000 for residential
applications
- 10%, capped at $25,000 for any one
building in the same year
- $50,000 in
total credits in any year for commercial applications.
- For more information on state and federal incentives, please visit the Database
of State Incentives for Renewable Energy.
Federal tax credit overview:
- Available to residential and commercial customers.
- 30%, capped at $2,000 for residential applications. 30% with no cap for commercial applications.
- Effective: Jan. 1, 2006; this tax credit is not retroactive to systems installed prior to this date.
- Expires: Dec. 31, 2008
- For more information on state and federal incentives, please visit the Database
of State Incentives for Renewable Energy.
Expected savings
Q: How much will I save with a solar electric system?
A: Your savings depend on how your system will be used, as well as the size and type
of your system. Generally, a solar electric system can reduce a residential electric utility bill by
approximately $10 to $40 monthly. Commercial customers can reduce their electric utility bill by
approximately $40 to $130 monthly.
You can use SRP's Solar CostCalc to generate
a customized profile of the costs and savings associated with installing a solar electric system in
your home or business.
Q: How much will I save with a solar water heating system?
A: Your savings depend on how your solar water heating system will be used, as well
as the rating and type of your system. Generally, a solar water heating system reduces the need for
conventional water heating by about two-thirds. In addition, a solar water heating system can reduce
your monthly electric utility bill by approximately $20.
