The investment in solar power can offer quick payback and long-term savings. It also provides your company protection against rising electric rates and the ability to forecast utility expenses far into the future.

A solar system can be mounted on the roof of your building or integrated into a building structure (such as a solar carport or building awning). SD solar Green can custom designs a system appropriate for your site and your power requirements.

• Benefits of Solar Energy
• How Commercial Solar Power Works
• Costs & Savings
• Rebates & Tax Credits for Commercial Solar Energy

Benefits of Solar Energy

Protect Against Rising Utility Rates

California businesses have seen electricity rates spike over the last 5 years. If utility bills are a significant portion of your overhead than large increases in electricity costs can affect the viability of your business. Installing your own solar power can reduce or eliminate your exposure to rising electricity rates. The portion of your usage that is generated on site will no longer be subject to increases in electricity rates.

Reduce Operating Costs

A solar power system can reduce or eliminate your building’s electric bill. Installing a solar power system is equivalent to prepaying for 40 years of power at a fraction of the cost you are currently paying. The cost/unit of energy you are currently paying is already higher than what you would be paying with solar. As rates increase this difference will only increase, which will result in further savings over the life of the system.

Take Advantage of Government Rebates & Tax Credits

Designed to encourage businesses to generate their own solar power, these programs can pay for up to 70% of the total system cost. These programs include direct rebates, tax credits, loan programs and other financial incentives. (More about Government Incentive Programs)

The State of California offers substantial rebates for both large and small commercial solar electric systems through the California Solar Initiative (CSI). Depending on the size of your facility, you will qualify for either the Expected Performance Based Buydown (EPBB) or a Performance Based Incentive (PBI) program.. These rebates can cover as much as 40% of the total system cost.

Expected Performance Based Buydown (EPBB)

This program offers upfront rebates for systems less than 100kW in size. The program is part of the California Solar Initiative, which started accepting applications on January 1, 2007

Rebate amounts are determined by a number of factors, including system location, orientation, shading and size. These rebates generally cover 20-35% of the total installed system cost.

Performance Based Incentive Program (PBI)

This program offers rebates based on energy production over the course of 5 years. Rebates are paid to the system owner monthly, based on reported energy production. This program is designed to benefit entities installing larger commercial or public sector projects. Typically, the PBI will cover more than 30% of the installed system cost. For some businesses, this type of program may be more advantageous than the upfront rebate offered by the EPBB. A International Solar Group Consultant will be able to determine which program is best for you, based on the specifics of your business.

The level of both of these rebate programs will decline as the program reaches scheduled participation milestones. Therefore, the longer a business waits to install a solar electric system, the lower the rebate will be.

Federal Tax Credits

In addition to State rebates and incentives, the Federal government offers a 30% Federal tax credit on solar power systems, and allows businesses an accelerated depreciation schedule over 6 years.

Good Return On Investment (ROI)

Government incentives combined with recent decreases in solar equipment prices, make the investment in solar power a good financial decision for businesses and public agencies. An investment in solar power can generate quick payback as well as long-term savings.

Long Term Reliability & Low Maintenance Costs

Photovoltaic cells were originally developed for use in space, where repair is extremely expensive, if not impossible. Solar still powers nearly every satellite circling the earth because it operates reliably for long periods of time with virtually no maintenance. Once installed, the solar power system requires little or no maintenance (especially if no batteries are used), and will provide electricity cleanly and quietly for 25 to 40 years. Our solar panels carry a 25-year manufacturer warranty on their production.

Become A “Green” Business

Generating electricity from solar energy means less consumption of fossil fuels, reducing pollution and greenhouse gas emission. By switching to solar power your company will be doing its part to combat global warming, and reduce our nation’s dependence of foreign energy sources. Being a green business can, not only reduce your operating costs, but can be a great source of public relations and a good marketing tool. There are a growing number of consumers who make their buying decisions based on the perceived environmental responsibility of the vendor.

How Commercial Solar Power Works

1. Solar Modules

Solar modules mounted on the roof or grounds of your facility convert sunlight into DC power.

2. Inverter

This power is sent to a device called an inverter (or power converter) which converts the DC power from the solar modules to AC power identical to that being sent to you from the utility grid.

3. Electrical Panel

Power travels from the inverter to your electrical service panel (your breaker box) where it is distributed to electrical loads throughout your facility.

4. Utility Grid

Excess power produced by the solar modules flows into the grid through your electric meter, causing your meter to run backwards and gaining you a credit with the utility company.

Net Metering

Net metering is an agreement between a utility company and you, the customer. The agreement states that the utility will credit your account for excess electricity you produce and feed into the utility grid.

If you choose to install a Time-of-Use Meter you can be credited for power at different rates; peak rates and off peak rates. Rates are dependent on the time of day, day of the week, and month of the year. Peak periods are typically week day summer afternoons. When you send power to the utility grid during peak times, you will receive a credit at the higher, peak rate. When you draw on your credit at off peak times your account will be debited at off peak rates.

Most people will benefit by installing the time-of-use meter. Keep in mind that you will receive a credit from the utility when you are generating more power than you are using. If all of the power being produced by your solar energy system is immediately being used, your meter will not “spin backwards”.

Costs & Savings

The cost of a solar electric system can vary significantly depending on the amount of power required. Industrial facilities will require systems of a different scale than a small retail business. A small office may only require a $15,000 system, while an industrial facility may require a $200-500k system.

A solar power system on your building is a long term, low risk, and high return way to invest your money. Solar offers an initial annual return on investment of 5-11%. This is very competitive with other higher risk investments such as stocks and bonds. As utility rates increase the annual return increases.

Solar power can reduce or eliminate your electric bill. In addition, any excess solar power can be fed into the utility grid resulting in a credit with the utility company. Some businesses may be able to take advantage of time-of-use metering. This will allow you to feed power into the grid during peak times (when power is most expensive), and draw power from the grid during off peak times (when power cheaper).

Rebates & Tax  Credits for Commercial Solar Energy

The State of California offers substantial rebates for both large and small commercial solar electric systems through the California Solar Initiative (CSI). Depending on the size of your facility, you will qualify for either the Expected Performance Based Buydown (EPBB) or a Performance Based Incentive (PBI) program.. These rebates can cover as much as 40% of the total system cost.

Expected Performance Based Buydown (EPBB)

This program offers upfront rebates for systems less than 100kW in size. The program is part of the California Solar Initiative, which started accepting applications on January 1, 2007

Rebate amounts are determined by a number of factors, including system location, orientation, shading and size. These rebates generally cover 20-35% of the total installed system cost.

Performance Based Incentive Program (PBI)

This program offers rebates based on energy production over the course of 5 years. Rebates are paid to the system owner monthly, based on reported energy production. This program is designed to benefit entities installing larger commercial or public sector projects. Typically, the PBI will cover more than 30% of the installed system cost. For some businesses, this type of program may be more advantageous than the upfront rebate offered by the EPBB. A International Solar Group will be able to determine which program is best for you, based on the specifics of your business.

The level of both of these rebate programs will decline as the program reaches scheduled participation milestones. Therefore, the longer a business waits to install a solar electric system, the lower the rebate will be.