New Jersey Solar Energy Home Example

NJ Home with Solar Panels Review and Electricity Production Estimates

The house that is being reviewed has a 14 panel solar electric system installed on it’s roof.  This review will figure out the expected electricity production in kilo watt hours, the average monthly energy savings, and the expected annual savings in dollars for the system.  Also, we will calculate the expected Solar Renewable Energy Credit benefits and federal tax credits that this size system is eligible for.

Solar System Specifications:

  • 14 200 watt solar panels
  • 1 Sunny Boy Inverter
  • 1 DC Disconnect Switch
  • Roof mounted with a Uni Rac mounting system
  • total solar system size: 2.8 kW

Expected Electricity Production:

  • 4.6 average sunlight hours per day
  • 10 percent shading inefficiency
  • 15% energy loss from inverter
  • Expected Daily Electricity Production = 9.8 kwh/day of electricity production

Average Monthly Energy Savings:

  • 295 kwh of electricity produced from the solar system per month
  • $0.18 avergae rate equals savings of $53.00 per month from solar

Annual Dollar Savings From Solar Each Year

  • $635 in expected Annual Electricity Savings from this solar system

Solar Renewable Energy Credit (SREC) each Year:

  • 3.54 SREC produced annually
  • each SREC is worth about $600
  • $2,124 in value from the SREC each year

Expected Federal Tax Credit for this System Size:

  • This system should cost about $21,000
  • The federal tax credit for solar is 30%
  • $6,300 Federal Solar Tax Credit

Summary of Solar System with Picture:

nj solar home

New Jersey solar panel house with 2.8 kw solar system

This solar system is a great value.  The annual benefits from owning this system are expected to be about $2,750.  Also, this system is able to take advantage of a $6,300 federal solar tax credit.  That alone covers about half of the total system cost.  With the system lasting for over 20 years, it will clearly pay for itself, and provide a constant return on investment in the future.  One thing that could have been changed is eliminating the shade that is reducing the efficiency of the system.  The 10% shading loss is something that can never be regained once the solar panels are installed.

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