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The
Economic Benefits of Commercial Solar Energy
Systems
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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.... |
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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 will be paid for your environmental contribution:
Solar Renewable Energy Certificates (SREC’s) are the environmental attributes also known as “Green Tags”, which represent your environmental contribution as a result of your solar electric production and a tool to monetize your solar investment.
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. |
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Introduction
