Question
Determine the difference in simple payback time (years rounded to the tenths decimal place) for solar systems for the case of no tax credits vs.
Determine the difference in simple payback time (years rounded to the tenths decimal place) for solar systems for the case of no tax credits vs. ITC tax credits. Assume a 20-year lifetime and 235,000 Mwh/year production. ignore transmission losses and solar panel degradation over time. Assume no maintenance costs per year, an installed 2021 solar panel cost based on rated power capacity for a 6 kW system to be $11,797, a residential electricity price ($.1228/kWh) and a Renewable Energy credit (26%) based on total installation costs given by the 2021 Solar Investment tax credit (ITC).
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