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Investing in Your Future:
With Current Arizona Policy,
a Solar Panel is a Good Investment
Dean Howard Smith
Introduction
The new federal tax credit on a solar panel system makes an investment financially worthwhile. The actual 14 month production history of a 2919 watt solar system is used to calculate the net present value of the savings on APS electricity bills over the 25 year lifespan of the system. The NPV is estimated at $1,625 with an internal rate of return of 8.3%. The simple payback period is 10.6 years. The estimated savings in terms of carbon dioxide – as opposed to coal based production – is 135 tons of CO2.
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