The Economics of Commercial Solar Energy Systems
Solar can make a lot of sense for your business as well as your home. The same incentives are available for solar installations on your business and often you can make a bigger impact on your current electric bills since businesses typically have a larger surface available upon which to put solar panels.
Furthermore, with flat rooftops and/or land based solar panels, you can face your solar panels in the optimal sun orientation and achieve higher electricity production, and quicker payback for your solar installation
NJ Commercial Solar Installation – Is Now the Right Time?
The current climate for commercial solar in New Jersey is extremely positive. There are a number of breaks offered to businesses considering commercial solar installations that every business owner should be aware of:
New Jersey Net Metering – With this program businesses can actually sell excess electricity back to the grid at the retail rate. This is great because the retail rate related to New Jersey net metering is significantly higher than the wholesale rate that large power plants receive for the electricity they sell to the utility. Plus, the ability to both buy and sell electricity from the grid allows you to balance your consumption and production, instead of letting any excess electricity you produce go to waste.
Solar Renewable Energy Certificates (SREC) – NJ’s SREC program is one of the best in the nation. For each Megawatt-hour of energy you produce, you get an SREC which can be redeemed at market value. These SRECs can be worth thousands of dollars a year to you, further offsetting the costs of producing electricity through solar panels, and reducing your payback time even further. For details of the this program see our page on NJ SREC Programs explained
No Sales Tax – Don’t worry about that annoying 7% sales tax. In NJ there is no sales tax on the purchase of equipment for commercial solar installations.
Bulk Purchasing Agreements – By partnering with other like minded businesses, commercial enterprises can achieve economies of scale on the purchase of solar equipment which can further reduce your costs.
Sunpower guarantee’s support for your system over its lifetime, regardless of who installed it. There is no longer any need to be concerned about using a smaller company to do your install. As a licensed and exclusive Sunpower dealer, your installation can be forever, guaranteed and serviced by any of dozens of Sunpower dealers in the New Jersey market.
Even the Federal government offers businesses the ability to apply for a solar investment tax credit that can potentially offset up to 30% of their system cost via a credit that can be applied to owed Federal taxes.** There are also purchasing strategies that can bring this cost even lower.
Financing For Commercial Solar Installations
There are also more creative financing options such as (P)ower (P)urchase (A)greements which allow businesses to minimize risk and have renewable energy on their property while lowering their monthly bills, for no or minimal investment while Purchase and Loan options are also available for businesses.
Understanding how your business is billed for electricity is important as well, and we can help you understand better through our Bill Review Process. Some business are subject to high “demand charges” where they pay a lot more for “ peak” usage, electricity that’s used during peak times. Solar and/or Storage is a great way to shave these peak demand charges and save more money while generating green energy.
Financing options also exist for Non-profits and/or business who may not be able to take advantage of tax credits. Our team at Green House solar will help you navigate that as well. Solar options are available for everyone!