Financial Benefits of Solar Energy
One 250 kW solar installation is equivalent to the power needed for 33 homes or 2,500 light bulbs. Commercial users can immediately improve their bottom line in a clean, sustainable way by substantially reducing electricity costs (which can be provided with no capital expense on your part). Standard Alternative offers you the ability to use electricity priced substantially below current utility rates, with a below market escalator for 10 to 15 years, improve the value of your New Jersey property with no tax liability and generate eye opening revenues at the same time.
You may purchase your system, borrow the money, lease the system from us, or not spend a dime by using Standard Alternative’s Power Purchase Arrangements (PPAs). Any of our alternatives offer you the ability to stabilize your electrical costs and lock-in reduced rates for 10-15 years. At the same time, you increase the value of your asset, while you generate good will by joining the green community. Recent oil price increases, nuclear problems, carbon legislation, wars and natural disasters are all constant reminders of how your business is affected by events or governmental intervention.
New Jersey is now the single best state in the country for solar energy installation. High electricity rates, federal tax credits, grants, Solar Renewable Energy Credits (SREC’s), accelerated depreciation schedules and creative financing provided by Standard Alternative all mean a project paying for itself within 3-5 years, with a guaranteed life expectancy in excess of 20 years. We can also arrange for you to go solar with no money out of your pocket, and we’ll manage the rest. You pay substantially less for electricity for at least 10-15 years. Renewable energy generation (solar, biomass and co-generation in particular) is quickly emerging as financial imperatives for business and consumers alike, while also furthering environmental benefits. Cut your energy costs; protect the Earth; protect your business from rising energy costs, and generate significant revenues at the same time.
UTILITY SAVINGS
High electricity rates are an expensive fact of life in New Jersey. Against the background of current affairs, substantial price increases are a certainty for the near future. Solar PV systems produce clean, reliable energy for you, while protecting you against future increases in electricity prices. Additionally, with Net Metering, you can at times actually create more electricity than you use during that month. This spins your meter backwards, so when you do use more energy than you produce, you are paying less and in effect using your own cheaper electricity. Large projects or stand-alone projects can produce electricity which can be sold back to the utility company. From the date we install your system and it’s connected to the grid, your solar electric system will reliably produce electricity during daylight hours for more than 30 years. As the cost of utility supplied electricity inflates, the actual energy saving from the solar system will increase.
SREC’s
SREC stands for Solar Renewable Energy Certificate. Each time a solar electric system generates 1000kWh (1MWh) of electricity (whether you use it or not), an SREC is issued to you, the system owner, that can then be sold or traded. Since SREC's sell for much more than energy you would buy from the utility company, it is easier for individuals and businesses to finance and invest in clean, emission free, solar power. Current system owners are not only getting the benefit of substantially cheaper electricity, but they are also receiving a large new revenue stream from SREC sales that are guaranteed legislatively in New Jersey for fifteen years. Depending on the size of your system, your SREC revenue stream could be anywhere from $20,000 per year (for smaller systems) to hundreds of thousands of dollars per year.
TAX INCENTIVES
Under U.S. Code Title 26 (Section 48(a)(3)), the federal government extends a tax credit worth 30% of your total system cost. This credit for businesses has no limit. Regardless of whether you install a $100,000 system or a $1 million system, your company gets a 30% tax credit. In October 2008 Congress voted to extend the ITC for eight years, through 2016. Additionally, your solar panel PV system is eligible for accelerated depreciation over a one to five year period for federal taxes. All labor and equipment involved in installing your solar electric system in New Jersey is entirely exempt from all sales tax. This exemption from New Jersey’s 7% sales tax applies to both residential and commercial solar customers. New Jersey enacted legislation in 2008 exempting renewable energy systems used to make on‐site electrical use from local property taxes. This means no matter how much your solar installation improves the value of your asset, your assessment and property taxes can’t be increased by the solar investment value. This exemption may be claimed for all qualified systems installed on residential, commercial, industrial, or mixed-use buildings. Even though the value of your building and property will greatly increase as a result of decreased utility costs, capital improvement, and the ability to generate new revenues, your property will be exempt from property tax increases due to the renewable energy installation.
IT CAN ACTUALLY COST YOU NOTHING
If you decide to use our PPA option, Standard Alternative will design, construct and operate a custom solar installation on your site, at no cost to you, and guarantee substantial utility savings for years to come.
LOWER YOUR ELECTRICITY BILL NOW AND SAVE EVEN MORE IN THE FUTURE
With our PPA’s, your electricity rate for the entire term of our agreement is pre-determined with a low annual escalation factor built in, well below actual and historical increases. We start with an electricity price that saves you money today and we project your savings to increase every year thereafter, minimizing the impact of the market on your electricity bills.
HOW IT WORKS
On sunny days, especially in New Jersey, solar panels often generate more electricity than you use. This surplus electricity flows out through your electric meter and into the electric grid, causing your meter to literally spin backwards and build a credit for you, as the system’s owner. On cloudy days and at night, when your solar panels do not produce as much electricity, your utility company still provides whatever electricity is needed. In New Jersey, the cost of electricity has increased about 9% in the last 7 years. This influences product costs, revenues, and profits; making energy a significant portion of any operation budget.
© 2012 Standard Alternative
Financial Benefits of Solar Energy in New Jersey
Solar Energy Solutions • New Jersey Solar Panel Installers