SOLAR ECONOMICS - COMMERCIAL

A number of factors make the investment in a solar electric system a sound business decision with extremely favorable rates of return.

Let’s take a look...

Rebates

The New Jersey Clean Energy Program (NJCEP) has implemented the most generous solar rebate rates in the country.

Solar electric systems are eligible for rebates based on the size of the system installed. Rebates are paid on the first 700 kilowatts (kW) of capacity on the following incremental scale:

• $3.50 per watt for the first 10kW of system capacity
• $2.50 per watt for the next 30kW of system capacity
• $2.25 per watt for the next 60kW of system capacity
• $2.00 per watt for the next 400kw of system capacity

This will amount to approximately 25 to 43% of the installed cost of your PV system, including all equipment, installation and connection charges.

We have special arrangements for the State rebate to be assigned as a form of payment.

Federal Tax Credits

A liberal Federal Tax Credit of 30% of the installed cost of the system after subsidized financing further substantially reduces the cost of your system. Please consult your tax advisor.

Substantial savings on your energy overhead

Depending on the size of the solar electric system you install, you will eliminate a substantial part of your electricity expense, often a sizeable overhead. The savings will vary over the course of the year; they will be greater in summer and somewhat lower during the winter months.

First, you will not be paying for the company’s electrical needs that are met by your system.

Secondly, you will be credited for any electricity generated in excess of your company’s needs.

Under the net metering rules, your electric meters will spin backwards as the surplus the system produces is automatically fed into the grid. (This is averaged out on an annual basis).

The impact of net metering will depend on your pattern of electrical usage i.e. your requirements for electricity during peak hours, during other daylight hours, and at night.

Your savings will begin at the top rate that your utility is charging for electricity.

Solar Renewable Energy Credits (S-RECs)

You’re paid to go solar

Renewable Energy Credits, sometimes referred to as Green Tags, recognize the environmental contribution your clean energy system is making.

Each time your solar electric system produces 1,000kWh of electricity, a Solar Renewable Energy Certificate (or S-REC) is issued. These certificates are tradable for cash.

From the first month your system is operational, it will be generating this additional source of income.

New Jersey ’s Renewable Portfolio Standard (RPS) – one of the most aggressive in the country – requires that the State’s electricity suppliers provide a certain proportion of their electricity from solar power. They must use the S-REC program to meet this requirement.

This creates an open market for the certificates.

The S-REC program website allows you to upload monthly meter readings or production information from which your certificates are generated. We can handle the sale of your certificates on your behalf, paying you the net proceeds; alternatively, you can use the on-line marketplace to trade the S-RECs yourself.

This program substantially increases the return on your investment in solar electricity.

Maintenance costs

Your solar system has no moving parts and maintenance costs over the life of the system are minimal. It will reliably produce no-cost or low-cost electricity for many, many years. The solar panels have a 25-year manufacturer’s warranty and are expected to last up to 40 years and beyond. The inverter has an expected life of 15 or more years; the warranty for the inverter is typically 7 years.

Let’s look at an example of a commercial solar electric system:

Initial investment

The system will begin to provide the following returns immediately (based on current electric rates of approximately $0.15 per kilowatt hour (kWhr).

These calculations have assumed current electricity rates. Expected rate increases will steadily improve your return on investment.