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Final NotesThe new federal tax credit on a solar panel makes an investment financially worthwhile. Previous analysis showed that such an investment, although environmentally friendly, was not worth it. In this paper it is assumed that the homeowner has directly applied the tax credits from the state and federal governments against the purchase price of the system. There will also be some additional accrued interest between the time the loan is received and of tax credits are received in the form of lower taxes owed.. Depending on the amount of time between these events, the amount will be small. ($210 for a full year at 7.5%.) The payment from APS faces the same issues. The homeowner needs to shop around to find a good system and compare the various warranties and maintenance schedules. The Arizona Solar Center is a nonprofit organization promoting the use and utilization of solar energy in Arizona. Their website has links to several companies that sell solar systems such as the one being considering. (http://www.azsolarcenter.com/index.html, accessed September 23, 2005) The seller should be able to provide the specific details of the tax credits. (If the seller cannot do this, then that is surely a negative sign.) Once a contract has been negotiated with a company for the purchase of a system, the homeowner must contact APS to “reserve” an EPS agreement. The number of EPS credits available to homeowners is limited. The website for the program is a useful starting place. The homeowner needs to make sure the system qualifies for the agreement before signing a contract with the seller! (http://www.aps.com/my_community/Solar/solar_35.html , accessed September 23, 2005) << Sensitivity Analysis | Introduction |
