Small business or commercial property owner looking to invest in solar, now is the time to act! - by Jim Dumas

Jim Dumas, Solect
Energy

As 2016 progresses, states around the country are locked in battles over solar policy. Massachusetts has been fighting for months now over the state’s net metering policy, but the state of solar has changed once again, as a portion of the Commonwealth’s SREC-II incentive program has now also reached capacity.

On Friday, February 5 the Department of Energy Resources (DOER) announced that the SREC-II program has been fully subscribed for projects larger that 25 kilowatts (kW) DC, having received an influx of applications and “…exceeding the cap by more than 193 megawatts (MW) DC.”

In short, the Commonwealth is currently in limbo for investing in solar projects larger than 25 kW DC until the next program is designed and rolled out.

A Path Forward

Luckily, in January of this year, the DOER carved-out 120 megawatts (MW) of SREC-II credits specifically for solar projects less than or equal to 25 kW in size. This is great news for the thousands of small businesses and residents that call the Commonwealth their home. The sub-25 kW market, which has typically been reserved for residential solar projects, may also serve small commercial arrays – a market that has been historically underserved.

Small businesses can benefit in big ways from going solar. In a small business, efficiency matters. Installing solar enables businesses to save money and control energy costs. The operational savings realized from reduced or even zero-cost energy bills can bolster big parts of a small business budget, allowing growth and higher margins. The environmental leadership displayed through the installation of a solar array can also help improve customer perceptions and can spur like action in the communities in which small businesses thrive. Solar can help small business owners achieve their goals more easily, by boosting profit margins and helping make an important impact on their communities.

The sub-25 kW SREC carve-out is a good opportunity to bring solar energy to those small businesses.

However, the SREC-II incentives are awarded on a “first come, first serve” basis and due to limited capacity, will likely fill up within a couple of months. Currently, there remains over 60 MW of space available under the SREC-II program for projects less than 25kW. However, that capacity is expected to fill up quickly as the DOER receives an estimated 1 MW of applications per day for projects smaller than 25 kW. If you’re a small business or commercial property owner looking to invest in solar to help reduce your energy costs – now is the time to act.

An experienced solar developer can help you determine whether your property is suitable for solar, walk you through the different financing options available, and assist you with applying for the SREC-II program.

Jim Dumas is founding principal and COO of Solect Energy, Hopkinton, Mass.