Renewable Energy
Renewable energy can help reduce your business’ long-term energy costs and greenhouse gas emissions.
Are Solar Panels Right for Your Building?
To answer this question, solar installers will assess your roof’s characteristics, including:
- Shade: Use Google’s Project Sunroof to understand your property’s shade. If healthy trees are preventing solar, be sure to consider the benefits of your trees before removing them.
- Direction: Panels are most effective on a south-facing roof, though east and west-facing roofs may be candidates if they receive enough sunlight.
- Age: Panels are best installed on a newer roof to simplify roof maintenance.
- Size: A general rule of thumb is that 100 square feet of roof space provides one kilowatt of electricity.
- Type: Slate and wood roofs are often not suitable for solar installations, but asphalt, metal, and clay are typically compatible, as are flat roofs covered in rubber or plastic.
- Suitability: Check with PSE&G to ensure the nearby electric circuits are suitable for new solar capacity.
- Preservation: If your property is in a designated historic district or site, be sure to check with the Office of Historic Preservation.
Buying Solar Panels
When you buy a solar photovoltaic (PV) system, you own the system, get monthly electricity savings, and receive rebates and incentives. Solar system expenses can range, but rebates & incentives can reduce the upfront cost dramatically. Depending on the circumstances, the return on your investment can be impressive — some homeowners pay for the system within eight years but keep the panels for 25-30 years.
So, what exactly are these savings, and who provides them? Here’s the breakdown for a New Jersey property owner:
- Net metering: If approved by your utility, this New Jersey program allows you to sell excess electricity back to the grid at the retail rate.
- Federal Solar Tax Credits for Businesses: There are two tax credits available to businesses and nonprofits, Investment Tax Credits (ITC) and Production Tax Credits (PTC).
- Sales Tax Exemption: New Jersey does not charge sales tax on solar energy equipment.
Leasing Solar Panels
Another option is to lease a solar PV system. In this scenario, there are zero upfront costs, and your electricity bill will decrease or even disappear, while the third-party PV system owner collects the other benefits to offset their installation cost.
Commercial properties in New Jersey can enjoy these same incentives. However, Nonprofits don’t receive the Investment Tax Credit and may struggle to justify the upfront costs. For this reason, Nonprofits commonly pursue a lease or power purchase agreement (PPA).
Getting Started
The EnergySage Solar Marketplace can help home and business owners find and evaluate solar options, including finding installers and reviewing loan or lease options. PSE&G also has a Solar Loan Program for businesses that allows you to pay back your solar panel installation with the energy you generate.
Hosting Community Solar
If your building has the space for a large solar array, but not a high electricity demand, you can host a community solar project! Ask your solar installer if you qualify and apply to the Community Solar Energy Program (CSEP) today! Learn more about community solar (NEEDS LINK).
