Investing in commercial solar can be an excellent way to save money on energy costs and reduce your organization’s carbon footprint. There are two primary ways to invest in commercial solar: purchasing a solar system outright or signing a Power Purchase Agreement (PPA).
If you purchase a solar system, you own the system outright. You can take advantage of various federal and state incentives to help offset the costs.
In California, there are several incentives to purchase and/or install commercial solar, which can make it a financially attractive option for businesses. Firstly, the federal Investment Tax Credit (ITC) provides a tax credit of 26% of the cost of installing a solar system. Additionally, California has its own solar incentives, such as the California Solar Initiative (CSI) and Net Energy Metering (NEM) program. The CSI provides rebates for solar installations, while the NEM program allows businesses to sell any excess energy their solar system generates back to the grid for credits on their energy bill. California also has a Renewable Portfolio Standard (RPS) which requires utilities to source a certain percentage of their energy from renewable sources, providing an additional market for solar energy. These incentives can make commercial solar a cost-effective option for businesses in California, while also supporting the state’s renewable energy goals.
In New Jersey, there are several incentives to purchase and/or install commercial solar, which can make it a financially attractive option for businesses. Firstly, the federal Investment Tax Credit (ITC) provides a tax credit of 26% of the cost of installing a solar system. Additionally, New Jersey has its own solar incentives, such as the Solar Renewable Energy Certificates (RECs) program, which allows businesses to earn credits for every megawatt-hour of solar energy their system generates. These credits can then be sold on a market, providing an additional revenue stream for businesses. New Jersey also has a net metering program, which allows businesses to sell excess energy back to the grid and receive credits on their energy bill. Furthermore, the state has a renewable portfolio standard (RPS) which requires utilities to source a certain percentage of their energy from renewable sources, providing an additional market for solar energy. These incentives can make commercial solar a cost-effective option for businesses in New Jersey, while also supporting the state’s renewable energy goals.
On the other hand, if you sign a PPA agreement, you essentially lease the solar system from a third-party provider. The provider is responsible for maintenance and repairs, and you pay a fixed rate for the energy produced by the system. This can be a good option for organizations that may not have the capital to purchase a solar system outright and a fantastic way to save money which will in turn increase your bottom line.
The MomentumNow Team along with OnSwitch Energy, a company with over 90 years of combined experience in the energy industry, provides commercial solar solutions to clients. They can help clients determine the best solar investment strategy for their needs, and provide guidance on available incentives and financing options. They can also provide ongoing support throughout the installation and maintenance process, ensuring that clients maximize the benefits of their solar investment.
Overall, investing in commercial solar can provide significant cost savings and environmental benefits for organizations. The MomentumNow Team, in partnership with OnSwitch Energy, can help clients navigate the complex world of commercial solar and develop a solar investment strategy that meets their unique needs and goals.