James Dumas - What happens if my tenant leaves and I have solar on the roof?
It's a natural question that a property owner asks when considering to put a solar photovoltaic (PV) system on their roof - especially in these economic times. There's good news in the answer! In line with addressing practical issues in the commercial solar world, here are two explanations below:
Short Answer: The short explanation, for those knowledgeable of the solar climate in Mass., is that the system owner still earns SREC's and can redirect where the electricity is "net metered" to so that 100% of these two revenue streams are intact. The flexibility of the programs allows the system owner to protect their investment in solar. Some caveats do apply so check with your solar developer.
Deeper Dive: Some basic understanding of the Massachusetts Solar Carve-Out Program and Net Metering Regulations are needed to "follow the money". The Mass. Solar Carve-Out Program enables a solar system owner to earn one (1) Solar Renewable Energy Certificate (SREC) for every 1,000 kWh's of electricity produced by the system. Providers of electricity in Mass. (except municipal light plants) have a state mandated goal of producing a certain percentage of their electricity from renewable sources. As such, SRECs are sold to these providers to satisfy this requirement. A key point to understand is that SRECs are earned whether or not a tenant is there to consume the electricity. If the tenant leaves, that's where the flexibility in the Mass. Net Metering Regulations is enacted. Under Net Metering you can change the billing account you want to earn electricity credits (not to be confused with SRECS!). So if Tenant A leaves, you can make an arrangement with Tenant B, in the same building or across town (some limitations apply), to "virtually" consume the electricity that is being produced from the solar system. Technically, the electrons are flowing back into the utility's power grid and virtually the financial benefit is flowing to another tenant's billing account. There are some nuances to how it works so check with your solar developer for details. All in all these programs provide great financial protection and flexibility for a solar system owner who has a tenant.
A tenant leaving does NOT mean the loss of solar revenue! If you own property in Mass. now is the time to be considering solar...especially since the 30% Federal Grant expires at the end of 2011.
James Dumas is a principal with Solect Energy Development, LLC, Hopkinton, Mass.
Providence, RI Shawmut Design and Construction celebrated the ceremonial groundbreaking for the 195 District Park Pavilion, marking the start of construction on a facility that will feature year-round dining and support space for park operations. In addition to the 3,500 s/f building, the project will include infrastructure upgrades
The New England Real Estate proud to showcase the remarkable projects that have graced the cover and center spread of NEREJ this year, all made possible by the collaboration of outstanding project teams. Now, it's time to recognize the top project of 2024, and we need your vote!
Long-term interest rates have fallen by 100 basis points, and the market is normalizing. In December of 2022 I wrote an article about investing in a high interest rate, high inflation market. Since then, inflation has cooled off, and the Fed has begun lowering their funds rate.
The industrial markets have never been stronger. What has happened is that the build out of Devens with new high-tech biotech manufacturing with housing to service these buildings serves as the connector required to really make the I-495 West market sizzle. Worcester has been the beneficiary