Harvest the Sun

Plant Solar PV in 2017
Cherryland's new Sell-All program is an excellent opportunity for Ag producers to receive long-term, steady, high income per acre from Solar PV
- $25-27,000 per acre annual yield
- Monthly checks from Cherryland
- 6-7 year capital recovery
- 13-17% Return On Investment over 15 Years
- 25 year system lifetime
- Virtually no maintenance
- 60% of system costs covered by tax credit, grant, rebate, and depreciation
Sample 36 kW Solar Installation
Requires 1/5 acre of land
$80,000 installed cost. $2.22 per watt.
Incentives
- 25% USDA REAP Grant ($20,000)
- 30% Federal Investment Tax Credit ($17,000)
- $3,000 Cherryland rebate
- $12,000 Accelerated depreciation (MACRS w/ 25% marginal tax rate)
Net installed cost = $28,000
Income Stream
Cherryland will pay 10c/kWh for 20 years. A 36 kW system will produce 47,000 kW-hours per year, $4,700 per year. Simple payback = 6.7 years. 13% IIR @ 15 years
Site Requirements
- Must be a Cherryland customer
- Reasonably level land with no tall trees 500 ft to east, south and west
- 480V 3-phase service within 1000 ft of site or . . . 240V single phase within 400 ft.
- Site footprint: 30 x 300, 50 x 200 or 100 x 100 ft
Sample 106 kW Solar Installation
Requires 1/2 acre of land
$200,000 installed cost. $1.88 per watt.
Incentives
- 25% USDA REAP Grant ($50,000)
- 30% Federal Investment Tax Credit ($42,300)
- $9,000 Cherryland rebate
- $30,000 Accelerated Depreciation (MACRS w/ 25% marginal tax rate)
Income Stream
Cherryland will pay 10c/kWh for 20 years. A 106 kW system will produce 138,000 kW-hours per year, $13,800 per year. Simple payback = 5.7 years. 16.4% IIR @ 15 years
Site Requirements
- Must be a Cherryland customer
- Reasonably level land with no tall trees 500 ft to east, south and west
- 480V 3-phase service within 600 ft of site or . . . 240V single phase within 300 ft.
- Site footprint: 35 x 600, 70 x 300, 100 x 200 or 150 x 150 ft
Payback and net cost depends on your marginal tax rate. This is driven by the 5 year MACRS depreciation schedule. REAP grant, CEC rebate and ITC tax credit are fixed.
36 kW |
36 kW | 36 kW | 106 kW | 106 kW | 106 kW | |
---|---|---|---|---|---|---|
Marginal Rate | 15% | 25% | 33% | 15% | 25% | 33% |
REAP Grant | $20,000 | $20,000 | $20,000 | $50,000 | $50,000 | $50,000 |
CEC Rebate | $3,000 | $3,000 | $3,000 | $9,000 | $9,000 | $9,000 |
ITC Tax Credit | $17,000 |
$17,000 | $17,000 |
$42,300 | $42,300 | $42,300 |
MACRS Depreciation | $7,300 | $12,000 | $16,000 | $18,000 | $30,000 | $39,600 |
Payback Years | 7.9 | 6.7 | 6.0 | 6.5 | 5.7 | 5.2 |
15 Year ROI | 11.3% | 12.9% | 14.3% |
14.7% |
16.4% | 17.8% |
Net Cost | $32,700 | $28,000 |
$24,000 | $80,700 | $68,700 |
$59,100 |