Question
Costs for the system are not yet known, but I want to know at what price range this project will be a reasonable solution for
Costs for the system are not yet known, but I want to know at what price range this project will be a reasonable solution for me. I currently expect a rate of return of 10%, on capital projects, and would view this as a 20-year project with no salvage value. I do not believe that there are any maintenance expenses associated with this system. Currently my average electric bill is $160/month, (level billing my monthly bill is fixed for 12-months). I expect electric rates to go up an average of 2% per year.What is the maximum price that I can consider acceptable for this project? What would be the maximum price I can consider if I included the 30% Solar Income Tax Credit?
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