What Green Do You See?

Teaneck, New Jersey is the latest Northern New Jersey community looking to install solar power systems to offset energy costs.

But do they actually save money? I think that's debatable. Here's the Record's rundown:

BY THE NUMBERS

Teaneck will install solar panels atop the community center and Fire Station 3 this fall. Here are the financial basics:

$615,000: Project cost

$204,944: State grant money available

$160,700: Federal stimulus money available

$9,200: Annual energy cost savings

$30,000: Annual revenue from selling solar energy certificates to public utilities

Teaneck will be getting $365,644 of the costs picked up by taxpayers at both the state and federal level in the form of grant money and stimulus money. The cost to Teaneck itself is $249,365. Teaneck hopes to save $9,200 each year and make $30,000 in selling solar certificates.

Is it worth it? Under these terms, Teaneck's spending roughly $250,000 to save $39,200 a year. It would take just about six years to make back their investment, but that obscures the fact that the real cost to taxpayers is $615,000, not $250,000. It would take nearly 15.5 years to make back the cost of the solar installation based on the actual cost - not the cost after figuring all the state aid and federal funds.

That's still better than some of the other costs relating to solar power installations seen around the nation. On the whole, this is a better use of funds for solar power as the breakeven point is much sooner than some programs, which may never break even because the number of years taken to break even would come long after the useful life of the solar power installations has ended.

Still, this is a best case scenario, and it is possible that Teaneck might not realize the cost savings anticipated.