The solar energy market in New Jersey has experienced tremendous growth and maturity in the past few years, writes Adam Putter, president of local company Solar Roof Development.
Studies show that New Jersey now ranks a strong second nationally only to California in installed solar, a remarkable achievement given the Garden State’s relatively diminutive size compared to the Golden State. The state’s installed photovoltaic capacity has increased more by over 400 per cent in just over two years, growing from 57MW in 2009 to 137MW in 2010 and recently exceeding 300MW.
About 72MW of new solar capacity was installed between December 2010 and March 2011 and the build rate in December 2010 was reported to be 155 per cent greater than the average of the previous 11 months.
Much of the growth that occurred in the latter stages of 2010 came in anticipation of the end of the federal cash grant. Congress extended the Renewable Energy Grant programme, which provides 30 per cent cash rebates for qualified projects, at least through the end of 2011.
Banks are more willing to lend with the grant as a down payment, so in effect, commercial companies can purchase the equipment with no money down. The 30 per cent grant is in lieu of certain tax credits, although projects are still eligible to depreciate 100 per cent of the system; less half of the cash grant or investment for qualifying energy systems put into service between September and this December.
New Jersey also has excellent solar energy incentives, including rebates based on energy efficiency measures and solar renewable energy certificates (SRECs) that can be utilised as a recurring revenue source to help finance projects. According to the Solar Energy Industries Association, it ranks second nationally only to California for grant-related solar projects, receiving 164 grants totaling $241m in investments and $72m in funding in the past year.
When you combine New Jersey’s incentives with the federal grant programme and the vast improvement in solar technology, there are some very compelling reasons to take a serious look at a solar installation right now. Indeed, given long-term uncertainties regarding incentives, 2011 could be the best possible time to explore solar projects for commercial and industrial buildings.
The evaluation process, which is highly complex, should begin right now, while property owners can still take advantage of the available subsidies, as well as current market trends and demand involving the sale of SRECs. It is important for property owners and managers to evaluate their long-term energy opportunities and liabilities, with energy prices expected to rise tremendously in the next two decades.
The payback of a solar or energy-efficiency project can be very quick, but more importantly the benefits will accrue to property owners for 25 years or longer for the life of a building. With the coming rise in energy prices, many businesses may not be able to survive, so doing something now can help them avert the problems that could arise in the future.
Given the economic cycles, some companies will not even look at going green if it doesn’t make some economic sense. However, there is substantial economic benefit to be derived from not only installing solar energy in New Jersey, but also having the product itself manufactured within the state. The Board of Public Utilities and other state agencies are actively seeking to boost the entire solar supply chain within New Jersey. The subsidies may not be as good in the future as they are today, but the need to protect businesses from rising energy costs will certainly be there.
Copyright © 2011 NewNet
Tags: solar
This story was published on Tuesday, June 14th, 2011 at 10:39 am and is filed under North America, companies, solar. You can follow any responses to article entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.Source : Click Here
