Not $2/watt

That’s what the final cost needs to be, but they are getting rebates and credits. The small system credit is $2.50 per peak watt in California. In addition, there is a 30% federal tax credit with write-off in 6 years available to commercial installations with no cap. There’s a cap for residential of $2K. So that’s $6.42 which starts to be obtainable, but you have to do better than that to make a profit and justify the risk. (I don’t know how these combine, and the tax credit is not quite that good, it’s over 6 years.)

There’s a 1.5 cent/kwh federal production credit. One thing I don’t yet understand is California’s performance-based-incentives program for systems over 100kw. Some claims say this pays as much as 39 cents/kwh for 5 years, which would make a dramatic change, and explain why it would be profitable, at least in California, to own an amalgamated generation system like this.

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