Commercial Solar Power Systems for Business Clients
In these tough economic times, Investing in a Run on Sun®
Commercial Solar Power System is the Surest Bet You Can Make!
Why is that? The answer is simple – substantial savings on utility bills combined with generous rebates and tax incentives yield a Return on Investment (ROI) as high as 15-19% with system payback by Year 5.
But NOW is the time to make that investment given the new, lower prices for solar panels, tempered by the certain knowledge that utility rebates for commercial solar power systems are declining and tax incentives are subject to the whims of the legislature.
Run on Sun is is your local, Pasadena-based solar power expert. We understand what it takes to install commercial solar power systems here in SoCal and we can make the process, in the words of one of our commercial solar clients, "a seamless and very positive experience."
Start saving now: Click here to sign up for a free site evaluation.
Feed-in Tariff Creates New Opportunities in LA
LADWP is now rolling out a Feed-in Tariff (FiT) program that has the potential to turn commercial multi-tenant buildings and parking lots into new revenue streams for savvy owners. The process is not without its complications, but we can help you turn non-productive properties into bankable assets. Give us a call and let's get started!
We Will Make the Process Seamless
Run on Sun starts by analyzing your utility bill and for many clients there are some nasty surprises hiding there. For example, if you are a commercial building owner in Pasadena Water & Power's territory, did you know that a single, fifteen minute spike in power demand will keep your bills higher for the next twelve months! Or did you know that for a SCE customer, installing a solar power system could not only lower your overall usage, but also your peak demand, which might let you change from the GS-2 to GS-1 rate structure, thereby saving you thousands of extra dollars?
We will explain what is hiding in your utility bills and help you size your commercial solar power system so that you can maximize your utility bill savings.
Rebates & Incentives for Commercial Solar Power Systems
We have a detailed explanation of the utility rebates for commercial solar power systems that are available today, and we also blog frequently about solar rebates. Generally speaking, for commercial solar power installations, the rebate will be paid in five annual installments based on actual system performance. This means that a well designed, engineered and maintained commercial solar power system may well out-perform rebate projections - meaning more money for you! Run on Sun offers five-year maintenance contracts to give you the confidence that your system will meet or exceed your performance expectations.
If you lease, you cannot claim to be solar powered!
Check out our blog post...
Under recent changes to federal law, the tax benefits of installing a solar power system are greater – and more readily available – than ever. For companies with sufficient tax liabilities to take advantage of it, federal law allows for a tax credit of 30% based on the installed cost of the system.
In addition to the federal tax credit, federal law also allows for a five-year accelerated depreciation schedule for commercial solar power systems. (California’s tax code also allows for an accelerated depreciation schedule.)
Of course, Run on Sun cannot provide tax advice, and clients must check with their own tax advisors to determine the applicability of these incentives to their tax situation. Nevertheless, between rebates and incentives, it is possible for commercial solar power clients to see their actual cost reduced by as much as 40-60% of the contract price.
Ready to get started? Sign up for a free, no obligation site evaluation.
Example – Hypothetical Commercial Solar Power Installation
Let’s look at how this might work with a practical example. Consider a hypothetical commercial client that uses approximately 150,000 kWh/year with a peak demand of 100kW. Such a client will likely be billed under SCE's GS-2 rate structure which, based on the June 2011 rate increase, would yield an annual bill of $36,000. A 75kW solar power system could reduce those bills by as much as 79% for an annual savings of $29,000 in Year 1. However, assuming that peak demand coincides with peak sunlight (a fair assumption if HVAC use is the major driver of the client’s peak power demand), our client might also able to get below the 30kW limit for GS-1. Under that rate structure the remaining bill would be just $3,000 in Year 1 – a savings of $33,000!
Commercial Solar Power Systems are More Affordable than Ever!
Those savings are a powerful incentive, but there is more good news – recent price reductions have made that 75kW system more affordable. In 2007 the price of solar panels was, literally, through the roof. Supplies of feedstock silicon were very tight as the worldwide production of solar panels consumed more silicon than what was used in the semiconductor industry. At the same time, demand for solar panels was soaring as larger rebates – lead by California’s Million Solar Roofs project – came online. As a result, supplies were tight and prices were very high.
In response, new plants were built to refine silicon and downstream solar panel manufacturing was ramped up around the world – just in time to coincide with the greatest economic downturn since the 1920’s. Today, those factors have combined to drive prices down to an all-time low. But as demand rebounds, and as utility costs continue their inexorable climb, prices for solar panels and related equipment will begin to move higher once more, making this the perfect time to act.
Example Revisited:
|
|
Utility Costs and Reducing CO2 Emissions
According to the California Energy Commission, over the past thirty years prices for electricity have increased 6.8% every year. The implementation of the mandated cap-and-trade program in California will cause a substantial increase in the cost of using fossil fuels – and as of the most recent data available, all of the utilities in the Run on Sun service area provided more than 50% of their electricity from burning fossil fuels.
Utility |
Power Content % (reporting date as indicated) |
|||
Coal |
Natural Gas |
Renewables |
Other |
|
PWP (2010) |
54!!! |
13 |
16 |
17 |
SCE (2009) |
10 |
51 |
16 |
23 |
LADWP (2009) |
42 |
30 |
14 |
13 |
BWP (2009) |
38 |
37 |
4 |
21 |
GWP (2010) |
30 |
35 |
21* |
14 |
*Unlike most utilities, GWP includes large hydroelectric in their renewable figure.
If SCE did that, their renewable total would be 23% (as of 2009).
Moreover, under California law, all utilities are required to provide 33% of their electricity from renewable sources by 2020. Collectively, these programs will drive utility prices higher, faster than ever before. But a commercial solar power system means that you will have locked in your cost of energy for the next twenty-five years.
Now, more than ever, a commercial solar power system provides a competitive edge in a tough economy. Give us a call or click here today and let’s get started!
See our Blog Post Series...