Market ranking by break-even PV price.
Residential electricity rate:
High = higher than 10 /kWh
Medium = 8-10 /kWh
Low = lower than 8 /kWh.
Capacity factor:
High = above 20%
Medium = 17%-20%
Low = below 17%.
Residential state tax incentive:
1: 25% tax credit, $1000 maximum
2a: 35% tax credit, $1750 maximum
2b: 35% tax credit, no maximum
3: 100% tax deduction over 4 years, $5000/year maximum (40% year 1,20% years
2-4)
4a: 15% tax credit, $1000 maximum
4b: 100% tax deduction, no maximum
5a: 40% tax credit, $1500 maximum, can carry over 5 years
5b: 35% tax credit, $25,000 maximum, can carry over 5 years
6a, 6b: 5% tax credit per year for 3 years
7a: 30% tax credit, $25,000 maximum, can carry over 5 years (expired but
extension pending)
7b: 20% tax credit, $150,000 maximum, can carry over 5 years (expired but
extension pending)
8a: 1996 and 1997, 48｢/kWh tax credit, $1200 maximum;1998-2001, 40｢/kWh
tax credit, $1000 maximum
8b: 35% tax credit over 5 years (10% years 1-2, 5% years 3-5)
9: 100% tax deduction on "taxable capital" or 10% tax deduction from
"taxable earned surplus."
Commercial state tax incentive:
1: 25% tax credit, $1000 maximum
2a: 35% tax credit, $1750 maximum
2b: 35% tax credit, no maximum
3: 100% tax deduction over 4 years, $5000/year maximum (40% year 1,20% years
2-4)
4a: 15% tax credit, $1000 maximum
4b: 100% tax deduction, no maximum
5a: 40% tax credit, $1500 maximum, can carry over 5 years
5b: 35% tax credit, $25,000 maximum, can carry over 5 years
6a, 6b: 5% tax credit per year for 3 years
7a: 30% tax credit, $25,000 maximum, can carry over 5 years (expired but
extension pending)
7b: 20% tax credit, $150,000 maximum, can carry over 5 years (expired but
extension pending)
8a: 1996 and 1997, 48｢/kWh tax credit, $1200 maximum;1998-2001, 40｢/kWh
tax credit, $1000 maximum
8b: 35% tax credit over 5 years (10% years 1-2, 5% years 3-5)
9: 100% tax deduction on "taxable capital" or 10% tax deduction from
"taxable earned surplus."
Netmetering availability. When available, net metering allows utility customers to reduce their electric bills by being able to run their electric meter backwards and thereby feed extra electricity back to the utility. This allows the customers to obtain the benefits of solar energy regardless of whether they are using electricity at the same time their system is generating power (for example, while they are away during the day).
Residential electricity rate in /kWh.
Commercial electricity rate in /kWh.
Capacity factor. This factor adjusts the energy output (in kWh) for the hours of available sunshine. For example, in Denver, you may have an average of six hours of full sunshine or a 25% capacity factor (6/24). So, if a PV system is rated at 2 kW, in Denver it would provide 2 x 6 or 12 kWh per day. This can then be compared to a 2-kW gasoline generator that could provide 2 x 24 or 48 kWh per day.
Commercial effective load-carrying capacity (ELCC). This is the ability of PV to effectively contribute to a utility's capacity, or system output, to meet its load. A good example of a high ELCC is when a utility's peak load is in the hot afternoon hours when PV is producing the most power.
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