Cost Reduction Example

Cost Savings Potential
The charts below shows examples of how the 1st year costs of different sized solar electric and solar hot water systems are reduced by
  • The solarize volume purchase discount
  • The solarize incentive grants
  • The Maryland State Grant
  • The 30% federal tax credit
  • Electricity bill savings
  • The sale of your system's renewable energy certificates
Solar Electric Systems
This example assumes Tier 5 discount currently in effect. For example, a 4 kW solar PV system costing $20,000 would be reduced though volume purchasing by as much as 23.7%, lowering the cost to $15,260. The cost would be reduced even more with a $2,500 local solarize incentive grant, a $1,000 Maryland State Grant, and a 30% Federal Tax Credit. Along with utility bill savings and the annual sale of Solar Renewable Energy Credits (SRECs), it’s very affordable. More participants mean lower costs. See the Tiered Price Schedules.

This chart is for illustrative purposes only. Actual costs and incentives depend upon site conditions and programs that may or may not be applicable to your situation. These pro-formas are not guaranteed and are subject to change without notice.

 Pro-Forma  2 kW
 4 kW  8 kW
 10 kW
 Estimated Retail Installed Cost of System
 $13,000  $20,000  $32,000  $39,000
 Maximum Solarize FC Volume Purchase Discount
 $5,100  $5,200  $4,400  $4,500
 Cost of System After Solarize FC Discount
 $7,900  $14,800  $27,600  $34,500
 Solarize $2,500 Incentive Grant
 $2,500  $2,500  $2,500 $2,500
 Maryland State Grant
 $1,000 $1,000
 $1,000  $1,000
 Federal Tax Credit
 $2,370  $4,440  $8,280  $10,350
 Total Discount, Grants, and Credits in 1st Year
 $10,970  $13,140  $16,180  $18,350
 Net Cost of System After 1st Year Solarize Discount, Grants and Credits
 $2,030  $6,860  $15,820  $20,650
 Estimated Sales of Renewable Energy Credits1
 $240  $480  $1,080  $1,200
 Estimated Electricity Savings in 1st Year
 $281  $561  $1,122  $1,403
 Net Cost at End of 1st Year
 $1,509  $5,819  $13,618  $18,047
 Percent of Retail Cost Covered by 1st Year Solarize Discounts, Savings, and Credits
 88.4%  70.9%  57.4%  53.7%
 Estimated Years 2-7 Electricity Savings and REC Sales2
 $3,080  $6,085  $12,229  $14,964
 Estimated Net Cost of System at end of Year 7
 ($1,571)  (266)  $1,389  $3,083
 Increased Property Resale Value3
 $5,620  $11,220  $22,440  $28,060
  • 1Assumes annual sale at 40% of ACP
  • 2Assumes $0.11/kWh in Year 1 and annual increases of 2%
  • 3Assumes resale value of 20 times annual energy savings
Solar Hot Water System Example
Assumes Tier 3 Discount
Cost Analysis
Flat Plate Collectors
Sized for 2-3 people
Installed Retail Cost $9,446
Solarize Discount (18.2%- tier 3 Pricing) -$1,721
Solarize Incentive Grant (Certified PS) -$2,000
MD State Grant -$500
Federal Tax Credit -$2,318
Electricity Savings in YR 1 -$417
SREC sale (1 SREC = $140) 5 max per year -$560
Total Grants/Credits/Savings YR 1 -$7,515
Net Cost to System Owner YR 1 $1,931
Years 2-5 Electricity Savings -$1,667
SREC 5-Yr average -$2,800
Net Cost to System Owner (YR5) -$2,536

SHW Pie Chart