Financial savings. The cost savings created by reduced electricity is actually a cost-effective payback that offsets the up front cost of purchasing and installing a PV roofing system, when you factor in the federal, state and utilities financial incentives, such as tax credits and subsidy programs. Even with this ROI, the up front cost of a PV system is substantial.
This situation has led to the development of solar power purchase agreements (SPPA), a financial arrangement between a third-party developer that installs, owns, operates, and maintains the PV system for the organization. The organization agrees to host the PV system on the roof or property and to buy the electricity from the provider for a predetermined period. This set-up allows you to receive electricity at a predictable cost, with the potential to have a positive cash flow via reduced electrical costs from the day the system goes into service. The solar provider receives the tax credits and the income the sale of the electricity generated. It’s a win-win situation.
Hedge against rate hikes. PV systems are not vulnerable to electrical rate increases, which have averaged about 6 percent in recent years. The PV panels produce electricity at a fixed rate over the life of the system.
Peak energy savings. PV systems can reduce the cost of peak power. A PV system produces the most power in the summer at mid-day, when the sun is highest. So it supplements the need for expensive power at peak operating times.
Public relations. PV technology can have a legitimate positive influence on the general public, which might think more highly of the organization for taking action to protect and improve the environment.
With billions of square feet of unused roof space around, PV systems are likely in your future. RAMCON is one of the very few contractors who has installed tens of thousands of kilowatts of solar panels on roofing systems. Contact Kyle Burdine at kburdine@ramconllc.com for more inquiries.
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