28th Place

28th Place

27.28kW PV system Maryland/DC Branch 28th Place is a low income housing complex with provided utilities. The building consumes significant grid power through a single meter. The customer was able to take advantage of a 30% federal tax credit and a modified accelerated cost reduction (accelerated depreciation) to lower the installed cost. The investment return is captured by the cash value of the electricity the system generates, and the Solar Renewable Energy Credit (SREC) market. For every MWh of electricity generated by the system, 1 SREC is created. The current value for an SREC in DC is $450. A conservative IRR lists 5 years of SREC returns, showing a positive cash flow year 2, with a very secure 19.9% rate of return. SREC sales after year 5 will increase the rate of return.
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