Going Solar at your Workplace? Start with These Key Considerations!
Solar is a popular topic among our business partners, and is among the most important local climate solutions available. With new tax credits in full gear and the summer sun upon us, we pulled together a great panel of local experts this week to review the basics of on-site solar power for commercial organizations.
We highly encourage you to watch the recording and slides from this session at the links below. For the cliff notes, here are the top three takeaways from each of our amazing speakers!
Coles Jennings, Director of Corporate Sustainability, C3 (Host)
1. Know your solar “why”: Do you want to save money? Reduce your carbon footprint? Make your property more marketable? These are all valid reasons to go solar, and each organization will have different answers and priorities. Complete this up front thought exercise to inform key decisions along the way.
2. Make solar part of an overall reduction plan: Solar is a high-impact, long-term strategy that can be highly supportive of successful business operations. It is also best complemented by short-term reduction strategies like energy monitoring and energy efficiency.
3. Do your homework: Buying solar is a business relationship, so know what you’re getting into. Prioritize contractor experience, seek multiple quotes, and ask for customer referrals. Familiarize yourself with some of the key inputs that make a successful project work: current energy rates, installation costs, solar production rate, and available rebates and credits. Don’t be afraid to ask a fellow business owner or friend for advice, especially someone who has gone through the process.
Joe Moore, Director of Commercial Solar, Tiger Solar
1. Know your bill: Virginia’s net-metering laws allow you to be paid market rates for power you export back to the company, so long as the power the system produces is less than your annual consumption. This is key to right-sizing your solar system.
2. The roof is the key: Most roof types are workable, whether flat, standing seam, or shingle. Ideally, you would have at least 10 years of life left on your roof to avoid having to replace your roof early in the PV system’s life.
3. Max out those credits! Many people know about the federal Investment Tax Credit (ITC), which offsets 30% of the first costs of solar. Did you also know about:
10% bonuses for American-made panels
10-20% for projects in low-income areas
USDA REAP grants, which can provide up to 40% of system costs
SREC sales
Equipment depreciation deductions
Ethan Dunstan, Senior Vice President of Business Banking, UVA Community Credit Union
1. A solar loan is an equipment loan: While solar has unique attributes, a conventional financing approach will treat solar just like any other equipment loan. Loan terms will match the life of the equipment (from a bank’s perspective, this is 20 years), and the loan will be secured in the same typical ways: cash, collateral, and in most cases a personal guaranty.
2. Unique programs are available: CPACE is starting to expand across the Commonwealth (e.g. Albemarle County recently approved C-Pace here), and is an energy-specific solution to help secure clean energy projects directly to real estate. Soon, Green Banks will provide another option apart from conventional financing.
3. Leverage your existing provider: If you already have an established banking relationship, this is a great place to start when figuring out how to finance a solar project!
Kevin Powers, Owner, Powers Farm & Brewery
1. Think big and small: Powers has two types of solar systems at their small-batch brewery site, shared between rooftop and a ground mount, but they’ve also gotten creative with small DC-powered solutions, including for electric fencing and small batch stills.
2. Make the cash flow work: About 50% of Powers’ solar system was paid for through the ITC and REAP grant, with the rest financed. Choosing the loan period of 7 years came down to balancing the monthly payment with the energy cost savings, to make things cash positive and pay off the loan as quickly as possible. If he had to do it over again, he might change that to a longer term, but it all depends on your unique situation.
3. Protect your investment: Keep track of your energy usage! Energy waste can get out of hand if you’re not keeping an eye on it, which can feel almost like erasing all those solar savings. Install some basic energy monitors and keep an eye on changes in historic trends.
Watch the recorded version and/or download the slidedeck of our webinar to learn more about switching your business to solar power, and keep up with our events to see what we’ll host next.