Direct Purchase

Direct purchase of a PV system from own or borrowed funds is similar to a real estate purchase transaction with the exception that the government has reduced the effective cost of the asset with tax incentives. In this scenario 100% of the ownership, tax incentives, and electricity cost savings belong to the purchaser.

 

  

Hawaii Residential PV System Example:

Description
%
%

Installed Cost
-
-

Less: Federal Tax Credit

30
-

Less: State Tax Credit

35 (cap of $5,000)
-

Net Installed Cost
-
70%- 35% or $5,000, whichever is less

Payback (Year)*
-
8

* Not considering revenue from sale of REC/SOX/NOX

 

Hawaii Commercial PV System Example:

Description
%
%
Installed Cost
-
100
Less: Federal Credit
30
-
Less: State Tax Credit
35
-
Less: Tax $ saved on account of depreciation
28
-
Net Installed Cost
-
7
Payback (Years)*
-
3

* Not considering revenue from sale of REC/SOX/NOX

 

  

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