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Question: Should I undertake this project? Calculate all relevant figures of merit in order to support your decision. Assume I will have taxable income in
Question: Should I undertake this project? Calculate all relevant "figures of merit" in order to support your decision. Assume I will have taxable income in every year going forward and that I plan to own this property for 10 years. If you feel it is necessary to make additional assumptions, please state them clearly upfront, and justify them.
Your Home suncommon Year Month Current Electrical kWh Expense: $ 1,077.61 $ 89.80 Projected Expenses: $ 2,071.71 @ 20 years: (3.5% inflation rate) $ 172.64 Current Electrical Usage: 6,392 kWh Your Solar System Type: PV Roof, Storage Number of Panels: 19 System Size: 8.26kW Est. Production: 8,138 kWh Model: LG NeonR 435 AC Roof, Tesla Powerwall 2 Your Investment Your Electricity Earnings System Value: $ 31,265.93 Estimated solar earnings based on an annual 3.5% Federal Tax Credit: $ (8,129.14) increase in electrical rates: 1 Year Net Investment: $ 23,136.79 $ 1,380.27 5 Years Deposit: $ 500.00 $ 7,364.35 10 Years Cost of Solar Energy $ 0.110 $ 16,004.62 25 Years $ 51,989.97 Solar Home Advisor Chris McLernon This proposal expires in 14 days, or last day of the month, whichever is sooner "The IRS offers an Income Tax Credit of 26% of the solar project cost, including a solar connected backup system, by offsetting a taxpayer's federal tax liability. You must have federal tax liability in order to take advantage of this credit. Federal tax credit rates for solar are dependent on PV system installation dates. If your system is installed in 2021, you could be eligible for a 26% tax credit. Please check with a tax professional to determine your eligibility. Your Home suncommon Year Month Current Electrical kWh Expense: $ 1,077.61 $ 89.80 Projected Expenses: $ 2,071.71 @ 20 years: (3.5% inflation rate) $ 172.64 Current Electrical Usage: 6,392 kWh Your Solar System Type: PV Roof, Storage Number of Panels: 19 System Size: 8.26kW Est. Production: 8,138 kWh Model: LG NeonR 435 AC Roof, Tesla Powerwall 2 Your Investment Your Electricity Earnings System Value: $ 31,265.93 Estimated solar earnings based on an annual 3.5% Federal Tax Credit: $ (8,129.14) increase in electrical rates: 1 Year Net Investment: $ 23,136.79 $ 1,380.27 5 Years Deposit: $ 500.00 $ 7,364.35 10 Years Cost of Solar Energy $ 0.110 $ 16,004.62 25 Years $ 51,989.97 Solar Home Advisor Chris McLernon This proposal expires in 14 days, or last day of the month, whichever is sooner "The IRS offers an Income Tax Credit of 26% of the solar project cost, including a solar connected backup system, by offsetting a taxpayer's federal tax liability. You must have federal tax liability in order to take advantage of this credit. Federal tax credit rates for solar are dependent on PV system installation dates. If your system is installed in 2021, you could be eligible for a 26% tax credit. Please check with a tax professional to determine your eligibilityStep by Step Solution
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