Tax Credits Explained
Undoubtedly, nearly everyone has heard that the tax credits for photovoltaic systems have changed as of the new year. Although this is an unfortunate situation, Hawaii Home Expo (HHE) has taken the stance that there is still no better investment than installing PV for your home. While clients have come to expect the average payback time to be between three to four years (after tax credits), it is important to note that because of the low costs that HHE maintains for all clients, the pay-back time will only increase by about a year in most cases.
For those who may have been caught unawares, here is a quick break down of how the new tax credits work. One system is now considered maxed out at a panel rating of 5 kw (or 5,000 DC Watts). In rough numbers, this would come out to twenty panels rated at 250 Watts.
For simple math (because HHE prices tend to be lower), let’s just say that this system has a total cost of $25,000 (or $5 per DC Watt). In the past, this would qualify for $8,750 in State tax credits. Under the current structure it will only be $5,000 in credits. While that is definitely less than before, based on the output of those 20 panels, that difference would be recouped through roughly 21 months of electrical savings, even in a less favorable sun zone like Kaneohe.
Photovoltaic systems are still the best return on investment. And while many people may think that there’s no reason to rush and install a system since the tax credits just changed, keep in mind that this first change hit without much warning as well so it’s in everyone’s best interest to keep installing and keep saving money.
Of course, the above example is a simplification as many people won’t need exactly twenty 250 W panels. Every home is different and Hawaii Home Expo can calculate exactly what’s needed. Let them walk you through the new laws and explain how a photovoltaic system is still simply the best investment around.
HAWAII HOME EXPO
contact // 695-EXPO(3976)
address // 2933 Koapaka St.