Fast Paybacks Solar Power: A smart investment with fast payback and enduring value  Your commitment to clean energy is also a wise financial strategy. A properly designed and installed Solar system can pay for itself in as little as 5 to 10 years—and even faster if special electric rates apply.  Depending on the size of your system, and on your expectations for increases in the price of electricity,  the Net Present Values (NPV) for a typical system are in the range of $3,000 to well over $10,000 for people with high electric bills. Click on this link to see What Size System Is Right For You. According to a recent study from the Appraisal Institute, the selling price of homes increases by $20.73 for every $1 decrease in annual electric bills. Using this 20:1 multiplier, a typical 3kW system—costing about $12,000 after incentives and saving about $1,000 in annual energy costs—will increase the value of your home by $20,000. Beyond payback to positive cash flow! Business customers enjoy substantial benefits in return for their Solar commitment. The combination of state solar energy tax credits, the Federal 10% investment tax credit, and Accelerated Five-Year Depreciation means that Solar energy systems generate substantial positive cash flow, particularly in the first five years of operation. As a result, the financial, environmental and lifestyle rewards of a well-designed Solar energy system are compelling. In fact, your Solar energy system is one of the best home and business investments you can make. How to calculate your advantage The best way to evaluate various solar power, energy saving and financing options is to perform a comprehensive Life Cycle Cost (LCC) analysis. This allows you to objectively examine the financial benefits of each alternative. Akeena Solar has developed a series of rigorous economic analysis techniques to reveal the NPV of each alternative.  1) First, determine first the total cost of your Solar power energy system (including equipment, installation and sales tax), along with various energy conservation and financing options that you may be considering. 2) Determine all costs and savings related to the Solar power system over its entire expected lifetime, including anticipated maintenance and upgrade expenses. 3) Depending on the particular circumstances of the project, calculate such factors as your projected annual electric cost escalation, discount rate, and marginal tax rates. By comparing each alternative using a consistent set of parameters, you can see which alternative delivers the best “payback” and greatest long-term benefits.