Climate change is an important issue for many. However, the conventional wisdom was that green power is more expensive than default utility service. Until recently, this was correct. This forced businesses to pay a premium for renewable power. New developments in the solar market are changing that conventional wisdom.
The solar market is in the midst of a revolution driven by new solar panels that are both more efficient and significantly less expensive than legacy panels. Today, in some regions, on site solar installations can generate power at a significant discount to utility prices. This means that that in many markets businesses can lower their electricity costs by installing on site solar panels.
5 has been working with several leading solar companies that are now targeting commercial and industrial customers in deregulated markets across the country. This focus is driven in part by the federal investment tax credit (ITC). Solar projects completed by December 31, 2016 receive a 30% investment tax credit. This effectively reduces the project cost by 30%. For projects that are completed after December 31, 2016, the ITC drops down to 10%. Until recently, large solar developers have been focused on utility scale projects. These large projects take too long to permit and construct for any new large projects to be completed by the December 31, 2016 deadline. There is still time, however, to complete small projects (rooftop or ground mounted) for medium and large municipal, commercial and industrial customers. Additionally, solar costs continue to drop at a rapid rate. For clients interested in a long term fixed price for electricity, this is an excellent time to consider solar options.
If you have any questions or want more information on how solar power might benefit your organization, please contact:
Jon Moore Jon.Moore@EnergyBy5.com 202-422-2582
Steve Kass Stephen Kass@EnergyBy5.com 973-879-3102