Residential solar arrays can range from $8,000 after incentives to over $40,000 for larger arrays. The bulk of the system cost is the solar panels, so the major difference in pricing is simply determined by how many panels you need or want to cover your electric bills.
There are incentives to help you offset the cost of a home array provided by the Federal Government and the Tennessee Valley Authority.
The Federal Government has a 30% income tax credit that is available until 2016. This means that you will be able to take a credit on your taxes for 30% of the total cost of the system until 2016. If you are not able to take full advantage of the tax credit in the first year, you can take it the following years until 2016.
TVA offers an attractive incentive for grid-tied systems under the new Green Power Providers (GPP) Program. For systems 10kW and under, TVA buys 100% of the solar generation at 9 cents/kilowatt-hour + your current rate (about 10 cents/kWh) which totals about 19 cents per kWh. For systems over 10kW, TVA limits system size to the use on-site and buys the electricity at the same premium, 9 cents plus the base rate. The credits roll over month to month, and if you rack up a credit that you do not use, your local utility will send you a check after 12 months. TVA also pays $1,000 after the completion of your array.
UPDATE: TVA has implemented a GPP program capacity limit of 7.5MW for 2013. Once TVA receives applications for 7.5MW, the program is expected to close for the rest of the year. Contact us for a free consultation, and we will help you decide if solar is right for you. Then, we prepare your GPP application and send to the local utility and TVA for approval.
Click here to view an electric bill showing solar credits.
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Pricing and Incentives
