Case Study, New Solar Homes Partnership (NSHP)
Homeowner’s Green Renovation Saves Big Dollars
When the Deitricks first investigated solar in the midst of a major home renovation, they knew that solar was a serious financial investment. However, GoSimpleSolar made it clear that the investment does not have to be high risk. By contracting an optimized 6.48 kW system with an IRR of 22.6%, they expect a cashflow payback period of only 5.4 years.
Since installation in March of 2014, the Deitricks’ solar system has produced 108% of estimated yield at consistent levels throughout the year.
The Residential Renewable Energy Tax Credit is a dollar for dollar tax credit that reduces the cost of a home or business owners solar PV system by 30%. For example; for every $10,000 you spend on a solar PV system, you’ll receive $3000 back in this Federal Tax Credit.
The New Solar Homes Partnership program is a state funded program that provides incentives (money back) to homeowners who either build a new home or extensively remodel an existing home. In this case, an extensive remodel was completed, and an incentive of $7988 was received by the homeowner which further reduced the cost of their solar PV system.
Saving by Practicing Energy Efficiency at Home
In June-July of 2014 the Deitricks were able to turn back their meter by being energy conscious at home. The graph below shows their net electricity usage from the grid. On 11 separate days in the pay period, the Deitricks were able to send more energy to the grid than they used, causing them to achieve a net electricity cost that was negative. At the end of the pay period, they received credits from PG&E as shown in the statement below. It really does pay to be energy conscious!
The amount of C02 emissions that will be avoided as a result of this project are tremendous. The predicted offset over 30 years is equivalent to planting 5,079 trees, or saving over 22,236 gallons of gasoline. Their solar system alone will displace the CO2 emissions from the annual electric use of 25 average homes. That being said, the Deitricks have a clear environmental conscious after going solar – priceless.