AgSun Solar Electric Sales of Janesville, WI installs solar panels at Midwest Prairies --
Photovoltaic solar system
AgSun had our solar panels up and running on May 14, 2009. They are great people to work with and communication with them is prompt. Now, for the best part. We produced 1638 KWH in our first 30 days of operation and generated $409.50. A check came in the mail with our electric bill for the difference of what we used and what we produced. We have never been so excited to receive an electric bill before.
We just completed our first year so I've compiled some facts to share with you.
1. We generated 14,700 kwh
2. Gross income: $3675.00 less additional meter charge = $3509.15
3. Our net cost of the system after rebates was $35,528.21
4. Our projected payback is 9 years
5. Our annual rate of return on our investment is 9.88%
6. We did not have to borrow the money so interest charges were not a factor
Without the incentives and getting the 10-year contract with Alliant for 0.25 kwh, our rate of return would not be this good (see below). An opportunity presented itself to us to get these incentives and we took advantage.
Our rebate from Focus on Energy was received within two months of hookup. Way to go Focus on Energy for your prompt turn over on our rebate. On August 2, 2009 we applied for our 30% government rebate and received it by the middle of October. The rebates covered 55% of our total costs.
Many of you have contacted us for additional information. I'm going to list the FAQ and our response.
- What was the cost of our system? $75,500 installed
- How many panels? 60
- Brand name? Sharp
- Estimated output? 10.2 kwh
- Is angle adjustable? Yes - we chose to adjust panels manually
- Do we have a snow & ice buildup? We did have some snow after the big snowstorm in December but we took an ice rake and raked it off. Took about 10 minutes. Otherwise, the panels have been staying nice and clean.
- Could the pillars have been shorter? Probably
- What is your energy usage? 13,000 kwh per year
- What is your payback? We are estimating 9 years based on the first 12 months of actual production.
- What is your program with Alliant? We are selling all electricity produced on the grid for 0.25 cents per kwh. This is the program Alliant was offering at the time of our installation to encourage solar.
Comments/questions made from inquiring minds:--Someone asked me recently - what if you didn't get the Alliant Energy contract for 0.25 kwh? So, I calculated it (assuming I didn't have to borrow the money) - Payback projection came to 19 years with a 5.23% return. Take out the Focus on Energy and government rebate and the projections came to 43 years and 2.3% return on investment.
--You have to deduct your electric bill from the amount sold to reflect true net income. Why? I would have had to pay an electric bill anyhow. This is a separate investment. You wouldn't subtract your electric bill from your stock portfolio, would you?
--You have to subtract what you would have received if the money was in a CD or stock investment. Why? That makes absolutely no sense. In today's market I may have received 1% to 2% for a CD and much less in a savings account.
--Let's do a comparison on our $35,528.21 investment (remember, we had incentives lowering our total investment). If this $35,528.21 were invested in a CD earning 5% per year (which is unheard of right now), we would have earned $1,776.41. But, we invested in solar panels (at the right time) and earned $3,509.15 in our first year. The big difference here is that we don't have "liquid cash" as if it were in a CD. If the money was invested in the stock market, well...that has been known to drop in value too.
"BE THE CHANGE YOU WANT TO SEE IN THE WORLD" - Mahatma Gandhi