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Production Based

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Production based incentives are paid based on the actual energy produced by the system. A $/kWh is assigned for a period of time.

In HOMER Grid, you can apply a production based incentive only to Solar

Below is an explanation of the various inputs in production based incentive:




Credit per kWh produced ($)

The credit per kWh of energy produced

Maximum credit ($)

The upper limit on the amount of credit that can be given

Limited incentive duration (years)

The number of years that the production based credit is valid for

Marginal tax percent (%)

If the credit is taxable, the percent of the credit that is taxed


Let us consider a PV system of 100 kW which has a total capital cost of 100,000$ and an annual production of 104,967 kWh. If the production based incentive applied to this PV system is as shown below:



Since the production is 104,967 kWh per year. The incentive is = 104967 kWh * (1- 0.35) = 68,228.55 $ per year

Since the incentive is limited to 10 years, there is a credit of 68,228.55 $ every year for the next 10 years.

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