Sample Solar Thermal Cost and Payback

 

The following is based on a simple payback model. This model takes into account the initial cost of the system, the grants available, and the offset value of the energy displaced by the system. For example, if your hot water system currently uses $200⁄ month of electricity and the solar water system offsets 40% of that cost, then you save $80⁄month. That is the offset value of the energy displaced. That money accumulates every month and quickly adds up to the price you paid to have the system installed. Then it keeps going for many years after, saving you money every month. This model does not take into account the tax depreciation (write-off), the escalating costs of electricity (or gas) that you did not have to pay, taxes, or net present value of money. This system is simulated using industry standard Federal Government accepted software and virtually located in Simcoe, Ontario. Please understand that this is a sample for demonstration purposes. Though API has done our best to ensure accuracy, for your actual paybacks speak to a certified accountant who knows your financial situation.

Even with the basic method we use to show you the savings, APIs solar thermal systems easily pay for themselves. To find out your potential savings contact API Solar Thermal team. Invest in a system today, and save for many years to come. The more hot fluids you use, the better the cost savings. As the system scale increases, so does the value.

System Description:

It is a solar hot water system for a chicken farm in Simcoe, Ontario. The system is an 8 panel package system available from API. It will produce a minimum average of 750 Liters (200gal) of 63 degree C (145F) water per day.

Installed system cost : $24,500 CAD

Incentives : $14,408 CAD

Cost to customer : $10,092 CAD

Simple Payback = 4.7yrs, IRR = 28%, total cumulative savings in 10yrs=$19,677cdn