What does a typical residential solar power proposal look like? What are the costs? Is photovoltaic (PV) solar power cost-effective? Which manufacturer’s panels are the best? Which company’s solar power proposal is the best for me? Does the solar power system have a payback or ROI that makes sense? All good questions that every consumer needs to answer before signing a contract.
Below is a proposal from a local company for a 5.8kW PV system.
Should I spend $26,850? Here’s a look at a recent proposal I received.
Financial Proposal Total System Price $ 26,850
Local Government Rebates ($ 14,127)
Net Contracted Amount $ 12,723
Less Federal Tax Credit (30%) ($ 3,816)
Net Investment $ 8,906
Electrical Details PV DC Power Rating (kW) 5,856
Estimated Monthly Power Production (kWh) 615
Local Cost $ per kWh 0.104
Expected Savings Per Month $ 63.96
Payback in Years 11.6
Increased Home Value (cost of system) $ 26,850
* Does not include cost of upgrading electrical panel ~$1,000.
- Is this a standard proposal? A. Yes
- Is this a high quality proposal? A. No, some details are incorrect. Taxes were omitted from Net Investment and solar radiation calculations are off, however the net “Energy Value” was calculated correct.
- Cost effective? A. Yes, especially considering the increase in home value.
- Will I purchase this system today? A. No. Panel prices and options for PV panels and inverters are changing monthly. More research is required before I can sign. I also want to understand “why” these components were chosen by the company.
Proposed System Details
Solar Power System – Details of my proposed system at a price of $26,850:
- (1) Power‐One’s Aurora Uno model PVI‐6000‐OUTD‐US power inverter
- Dual inputs with independent MPP tracking for optimizing power from two sub-arrays
- Flush mount roof racking system (manufacturer not specified)
- Services for all installation labor, engineering, permit, and inspection.
Solar Power System Proposal Summary and Detail