Commercial Solar frequently asked questions
The answer to that question depends on
how much electricity you use, and the available solar access at your
building site. Other factors include the building’s Floor Area
Ratio, or the building size compared to the lot size, and whether it
is a single-story, or multi-story building.
Conversely, how much power your business
uses in another important consideration, some business sectors are
very energy intensive and use a disproportionate amount of
electricity for their manufacturing processes, or require cool
temperatures, or controlled spaces to operate (large computer
servers, etc.) You energy requirement must also be carefully
considered in the process of designing and sizing a solar electric
power system to meet your load requirements.
Is my site suitable for
solar?
A solar power system can be installed on
a custom or ground mount or a flat composite, tar and gravel,
bitumen, composite shingle, cement tile, or metal roof top. Solar
panels are usually installed parallel to the roof surface. For this
reason the orientation of your roof is important. South facing roofs
offer the most annual production, while east and west facing roofs
will produce slightly less. However, west facing roofs produce more
power during "peak" times when power can be worth more money.
How much space does the solar
system require?
The general rule of thumb for calculating
power output from a solar system is 1 kilowatt per 100 sq. ft. of
panel area. For example, a 10kW system requires 1,000 sq. ft. of
solar panels. So a typical 100 kW solar system (a medium sized
commercial application) requires approximately 10,000 sq. ft. of
panel area.
How much will it cost?
Although many factors affect the gross
cost, if purchased today an average commercial PV system, including
installation, costs from $7 to $10 dollars per watt; or $7,000 to
$10,000 for a 1-kW (1,000 watt) system. State and Utility Rebates
instantly bring the net installed cost down to $4 to $6 dollars per
watt. 5-Year Accelerated Depreciation reduces the net cost of the
system down to as little as $2 per watt.
By producing your own electricity you:
·
Eliminate or reduce your monthly electricity bill
·
Reduce or eliminate generation, transmission and distribution
charges
·
Save from 30 - 60% off the system purchase price with state
incentives
·
Receive a 30% federal tax credit
·
Take advantage of 5 year accelerated depreciation on the
remainder of the system cost
·
Increase the long-term value of your real estate investment
·
Protect yourself from exposure to costly electric rate
increases, in the next 30 - 40 years
COMMERCIAL SOLAR INCENTIVES IN NEW JERSEY
NJCEP Rebate:
Solar electric systems may also qualify
for property tax exemption. Qualifying systems need to be certified
by the NJCEP. Renergy utilizes UL Listed components in our power systems
that also comply with the National Electrical Codes (NEC).
How much can I save?
By financing a commercial grid-tied PV
solar system you can not only improve your business’ bottom line,
you can also protect your company from electric rate hikes for the
next 30 years.
Solar PV output is at its highest during
business hours, offsetting peak demand charges that spike utility
rates as much as $.36 kWh, increasing the savings of solar electric
power generation.
With energy costs expected to rise on
average by 7% annually, a solar PV system acts as a hedge against
future rate spikes by locking in the low $.03 kWh rate for
commercial solar power.
With New Jersey’s abundant sunshine, high
electricity rates and generous rebates and tax incentives, the
return on your investment in a Renergy Solar System for your business is
extremely strong. For many customers, the return on investment is
between 20% and 25%. Additionally, this return comes with very
little risk. The table below presents the projected return on
investment for an actual customer.
Can it produce 3-phase 208 volts, or 480 volts
that my building uses?
Solar electric systems can be designed to
meet any commercial or residential power applications.
How does net-metering work?
Net Metering measures the difference
between the electricity you buy from the utility and the electricity
you generate with your solar electric system. When you are making
more electricity than you are using, like typical summer days, your
extra electricity automatically gets metered back out (sold) to the
utility grid. You receive credit for this power at the same rate
they sell it to you. Net Metering allows you to use the electric
utility grid like a bank account. You can put electricity into it
that you don’t use immediately and you can withdraw the same amount
later on at no net cost to you.
How long do the solar panels
last / Do these systems require any maintenance?
Solar panels come with a 25-year
warranty, and have a 40-year design life. Using solid-state
technology the panels have no moving parts, and require no
maintenance. For this reason many of our cost-savings analysis show
projections out to 30 year. Investing in a solar system will ‘fix’
your cost for electricity for at least the next 30 years, and give
you a hedge against future increases in electric rates.
What’s the payback period for a typical
commercial system?
Commercial systems typically have a 5-10
year payback (calculated on the ‘after-rebate’ cost). So these
systems pay for themselves early on in their expected life, and go
on to generate tens of thousands of dollars in ‘positive cash flow’
during their entire life cycle. The actual payback will depend on
several site specific factors, from the ‘peak demand’ charges you
pay based on your consumption, and where systems are financed, the
interest rate and terms of the loan, the borrowers tax bracket, and
assumptions about the rate at which electric rates will continue to
rise over time.
Is there a warranty on the installation
itself, besides the manufacturer’s warranty?
Renergy provides a 5-year warranty on labor
and installation, in addition to any manufacturer’s warranty of
equipment. We will inspect the system annually as well.
How long has Renergy
been in business?
Renergy
has been In business for over 4 years however we have over 7 years
experience which is a long time in the fairly new solar industry.
Our Experience
Renergy, Inc. is an Renewable Energy
Services Company. Our projects are full turnkey solutions
based on state-of-the-art renewable energy generation and more.
I’m interested, what’s the next step?
If your company is interested in
assessing the viability of a solar power system at your facility, we
can provide a custom financial analysis. First we will conduct a no
cost site analysis and obtain information from your electrical bill.
·
Site analysis: Renergy will conduct an on-site
assessment. We will determine the amount of shading, if any, your
site will experience at different times of the day and throughout
the year and, measuring the available mounting area, will determine
the maximum size system your site can accommodate.
·
Energy use analysis: Using past energy
bills, we will determine the ideal system size to suit your
particular electrical needs and to optimize your investment.
·
System design: Incorporating the above
considerations as well as your budgetary parameters, we will design
a system to fit your application.
·
Project proposal: We will present a bid
for the cost of the system. This bid will include the administering
of all paperwork necessary for the application of your rebate funds,
your county permitting, and your utility company net-metered
account, all necessary equipment and materials, system installation,
and a five-year warranty on all parts and installation.
·
Contracting: If our bid is acceptable to
you, we will draw up a contract that will clearly outline the scope
of work and the project timeline. Having agreed to the terms, we
will sign the contract.
·
Application of rebate: Directly following
the signing of our contract, we will send your rebate application to
the state for approval.
·
Other applications: Upon receiving
confirmation of funding from the state, we will administer an
application for a building permit.
·
System installation: After obtaining the
necessary permits, we will begin the installation of your system and
have it completed in a timely manner.
·
County signoff: After your system is
installed, a county building inspector will inspect and approve your
system.
·
Utility inspection and startup: After the
county has signed off on the project, a utility company meter
technician will inspect your system and install your net-meter. At
this point, the system will be commissioned. A Renergy technician will
monitor its performance and okay the system. Your system will then
be fully operational.
Is the cost of electricity going to keep going
up?
While monthly payments on a solar
electric power system might be about equal to the monthly electric
bill today, as electric rates increase, which is inevitable, the
greatest benefit of a solar electric system emerges. Solar allows
homeowners to lock-in low rates for 30 years. If rates increase as
they have historically, the price of electricity from the utility in
30 years will be 75 cents per kilowatt-hour!
Pending natural gas shortages are likely
to push electric rates higher in the near future. Ninety-seven
percent of all new power plants to come online in the past 3 years
in the U.S. use natural gas. The overall demand for natural gas has
increased over 10% during that time. On June 26, 2003 the Secretary
of Energy convened a special Gas Summit meeting to, “address the
urgent issues facing the natural gas market to avert a crisis.”
Will a solar system
increase the value of my building?
A recent article in the “Appraisal
Journal” and article title More Evidence of Rational Market Values
for Home Energy Efficiency referenced a study “indicating that home
value increases by. About $20 for every $1 reduction in annual
utility bills (as a result of investing in energy efficient
improvements), reflecting after-tax mortgage interest rates of about
5%. Many real estate appraisers now use a simple formula to
calculate this “added value.” And while this study was focused on
the residential sector, for the same reason (reduced operating cost)
a commercial grid-tied solar electric power system is a very
marketable feature for perspective buyers.
If so, will a solar system
increase my taxes?
In many cases, grid-tied solar electric
power systems are also exempt from property tax as well as sales
tax. So this provides a double incentive, while it adds value to
your commercial property, you don’t have to pay taxes on that
marginal increase in property value.
