A homeowner in Orlando, Florida Installed a 6 kW_P V system using a crystalline silicon panels for a total cost of $29,000. The system Is connected to the grid with a net metering plan (i.e. the homework pays for the difference in the electricity used and that produced by the system). The system produced 6500 kWh_e in the first year. Assume the panels will degrade by 0.20% per year.
1. If the effective rate is $0.12/kWh and assuming the rate will Increase by 5% per year, find the payback period for the system. Assume the discount rate to be 5%.
2. Suppose this homeowner now gets a rebate of $1.25/W from the electric power company and a 20% federal income tax credit. What is the payback period now?