It’s never been a better time to become a green business, thanks to an array of financial incentives. Here’s all you need to know:
Power Purchase Agreement (PPA)
A Power Purchase Agreement (PPA) is a financing solution for commercial customers who do not want to incur high initial CAPEX on solar energy systems or those who are unable to take advantage of tax credits and other incentives.
- In a PPA, the system is financed, owned and maintained by a third party. This third party also owns the RECs and benefits from applicable state rebates, tax credits or depreciation.
- As the facility owner, you provide the host site and purchase the metered output of the system at rates that are typically fixed for an extended period.
- Over time, this arrangement is more economical than purchasing electricity from the utility.
For more information on PPAs, do feel free to reach out to us, on 1-888-365-ASKGB or 703-657-0090 (Office) or 703-463-9543 (Fax).
Renewable Energy Credits (RECs)
Utility companies are required to generate a part of their power through a renewable source. This share is called the Renewable Portfolio Standard (RPS). Your utility provider can purchase the extra solar power you produce and give you Renewable Energy Credits (RECs). If your system produces a certain number of RECs in a year, it can be traded on the open market to help offset the system ownership costs.
On average, with a 50-kW commercial installation, you can generate up to 90,000 kWhr of annual power and save up to USD 12,600 per year.
|Size of the Solar System (KW)||50|
|Installation space required (Sq. Ft.)||5000|
|Annual Power Generated (KWhr)||90000|
|Approx. Installed Cost of System||$375,000|
|Fed Tax Credit (Commercial)||-$112,500|
|MD State Tax Grant||-$5,000|
|Total upfront Cost to Customer||$257,500|
|Depreciation of the Equipment (accelerated over 4 years as per the law)||Tax Savings|
|Annual electricity cost savings@ 14 ¢/KWhr||$12,600|
|Total electricity cost savings over 25 years @ 6% annual inflation +||$822,620|
|tax savings over 4 years of depreciation|
|Greenhouse Gases Avoided|
|CO2 emission avoided in 30 years (Tons)||9,355|
|NOx emission avoided in 30 years (Lbs)||833|
Find out if solar is right for you.
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