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Net Metering
sites: (Multiply solar array rating (kW) 6 hours Simple Payback Period Without Incentives:
a day 365 days a year 70 percent). The 70 per- $400,000 / $7,500 = 53 years
cent takes into account system efficiencies. In this Internal Rate of Return: minus 3.4%
example, this would give 15,330 kWh per year. Net Present Value: minus $270,000 (rate = 4%)
10,000 W $4 / Watt = $40,000
Annual Offset Electrical Cost: $.0931/kWh 15,000 kWh Payback Including Incentives:
= $1,396 USDA Renewable Energy for America Program 25
percent grant
Simple Payback Period Without Incentives: (must be farm, ranch, or rural business to qualify; renew-
$40,000 / $1,396 = 28.6 years able system must be attached to farm, ranch, or rural
Internal Rate of Return: 0.2% business meter no house meters)
Net Present Value: minus $15,851 (rate = 4%) Federal Tax Credit 30 percent
$400,000 25 percent = $100,000, leaving $300,000
Payback Including Incentives: $300,000 30 percent = $90,000, leaving $210,000
USDA Renewable Energy for America Program 25 $210,000 / $7,500 = 28 year payback
percent grant
(must be farm, ranch, or rural business to qualify; renew- Payback Including Incentives and Inflation:
able system must be attached to farm, ranch, or rural
business meter no house meters) Assuming a 4 percent annual increase in electricity costs.
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