Using the following investment formula:
ROI = (Gain from investment – cost of investment)/cost of investment
It is easy to calculate ROI for the third year of solar usage.
First, the cost of the investment:
(I will assume $23 for home insurance as it was the first year since my insurance company did not break out insurance for the solar array separately this year)
Home insurance $23.00
12 HEL monthly payments $1781.40
(Mar. 2020-Feb. 2021)
electrical costs to JCP&L $21.98
$1826.38
This cost is balanced by the money received from the sale of 8 SREC’s = $1742.00
Let’s assume that my electrical costs for Mar. 2020 – Feb. 2021 would be the same as what I paid for electricity in 2017 (before I had my solar array), which was $1124.21. My gain from investment is: $1742.0 + $1124.21 = $2866.21
Plugging into the formula shown above gives us:
ROI = ($2866.21 - $1826.38)/$1826.38 = 0.569 or 56.9%
Now that we have gotten past the initial costs of the first year, this investment in solar energy is really starting to pay off!
Another way to look at it is that without solar, I would expect to pay $1124.21 for electricity. With solar, I had a total cost for the second year of $1826.38 - $1742.00 = $84.38. My net gain is $1124.21 - $84.38 = $1039.83.
The extra thousand dollars this year is definitely a welcome boost to my annual budget.
As before, my solar array produced slightly more than 8000 kWh as expected (8 SREC’s were obtained and sold). We had a slight excess in kWh at the end of our solar year (Feb. 2021), so JCP&L gave us a credit of $8.60.
As before I will note that my solar array has not required any attention or any kind of repair thus far. Now celebrating three years of trouble-free operation!
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