Comment Re:Power companies (Score 4, Informative) 141
Now many states have have laws requiring essentially that the power company buy or give you credit for anything you produce. So you get the panels installed and apply for a two way meter from the electric company. They keep track of how much you produce and subtract it off your consumption essentially.
Furthermore, some states require utility companies to use so much power from solar, and this is done essentially by buying credits from people making solar. So in NJ if I have 10 kW worth of panels I might generate enough credits in a year to sell for $6000. It is essentially the state dictating that the power company has to pay me money for making solar energy. That is on top of the savings you get from using less electricity.
So with federal rebates, a 10 kw system costs around $35k to $40k to install. But with the credits and electricity savings, it will "pay for itself" in 5 years or so.
In NJ this fell apart a little bit because everyone saw it was a good deal and there is now an oversupply of these credits, so the value of the credits are less than half of what they were last year. Time will tell how it all shakes out. If I got no money for the credits, the panels should pay for themselves in 20 years. So it will be somewhere between a ton of free money and a marginal investment.