Businesses seeking to stabilize the expense of their energy use can look at options for decreasing their needs and find alternative energy solutions.
Investments in solar energy can help reduce reliance on a variable energy market and carbon emissions Our panel discusses what solar project options are out there, and how to take advantage of available incentives for energy system upgrades and solar power.
The panelists:
Nicholas Golon, PE, civil department manager and principal, TFMoran
Ben Gordesky, solar development manager, Energy Efficient Investments
NH Saves utility partners
Christopher E. Ratté, attorney of business law and real estate, Shaheen & Gordon, P.A.
Dan Weeks, vice president of business development, Revision Energy
Nicholas Golon, PE, civil department manager and principal, TFMoran
What is a “utility-scale” solar facility, and how is it different from a rooftop solar array?
Although the exact definition may vary depending on who you ask, the nature of the answer is typically the same: It is a large-scale solar generator, 1 megawatt (MW) or greater, that connects directly into the power grid, supplying a utility with energy.
Typically, there is a power purchase agreement between a developer and the local utility, guaranteeing a market for the developer for a fixed term of time, but we are also now seeing utility-owned, utility-scale solar projects, driven in part by utility providers’ ongoing efforts to support renewable energy initiatives.
What are the greatest challenges facing “utility-scale” solar facilities in New Hampshire?
Location, location, location. In that, the scale these facilities require is approximately 6 to 8 acres of usable land to accommodate 1 MW of generation (including solar equipment, panels, access and stormwater management).
Finding a site of this size, and in appropriate proximity to existing utility infrastructure, is a challenge. On par with finding a site that meets these basic criteria are the challenges derived by local land-use restrictions, as many municipalities did not contemplate the use of such facilities in the provisions of their zoning and site plan regulations.
Perceived environmental and wildlife impacts associated with land clearing and site preparation operations is also a challenge in the siting of these facilities, although these impacts may be offset with appropriate considerations for stormwater management best practices, inclusion of appropriate buffers to sensitive receptors, and use of wildlife-friendly fencing to accommodate wildlife connectivity.
What future technologies/innovations do we have to look forward to with “utility-scale” solar?
Although the advancements in energy storage will be a prolific contributor to the advancement of solar science, we can also look in a different direction for innovation, as sometimes the best ideas are found in the most unlikely combination of two competing uses.
In this case, agrivoltaics, or dual-use solar and agriculture, is the use of land for both agriculture and solar energy generation. One of the acknowledged drawbacks for solar is the conflict it presents with agricultural production, as they share the commonality of preferred land conditions that are flat and provide abundant sun.
The co-location of such uses would provide benefits to both industries. Such facilities do exist in New England, such as the 4.2-MW Rockport Maces Pond Agrivoltaic project, a dual-use community solar project on a blueberry farm in Rockport, Maine, as well as the ongoing efforts of the University of Massachusetts Amherst through their research team.
The team has been collaborating with private solar developers and host farmers to implement agrivoltaic operations at sites around the Commonwealth of Massachusetts.
Much like the co-location of different land uses in a mixed-use land development project, it will be very interesting to see if this symbiotic practice of co-locating solar and agriculture can be successful.
Ben Gordesky, solar development manager, Energy Efficient Investments
What is Energy Efficient Investments, and what do you do?
At Energy Efficient Investments (EEI), we have been helping businesses and public institutions produce their own renewable energy and reduce their energy consumption since 2007.
We take a holistic approach to find the best opportunities for businesses to save money and meet their climate goals. EEI also assists with financing. We can help you find the lowest-cost financing opportunities that help make projects attainable.
How is solar energy a benefit to businesses?
Solar is one of the best long-term investments for a business. With solar you are essentially buying more than 30 years of electricity all at once.
This locks in a stable cost of energy for your business. Instead of riding the waves of utility and supplier rates, you know that your cost of energy will be the same for the next several decades.
For example, a business adds a 200-kilowatt solar array that produces an average of 220,000-kilowatt hours (Kwh) per year. At a net cost of $280,000, that would have a long-term cost of energy of less than 6 cents per Kwh. And this rate won’t go up!
Isn’t it expensive to set up a solar array?
It is well known that solar can help you save long term on your energy costs. For example, the solar array above could offset the upfront cost in 10 years or less. And by year 25, it would have paid itself off and saved the business an additional $500,000 or more.
There are tax credits and other grants that can help pay for a business solar array. There is a 30% federal investment tax credit as well as the ability to depreciate 85% of the system cost as a five-year MACRS. This can often pay for more than half of the system-installed cost. EEI does recommend that you check your eligibility for any tax incentives with your accountant before making any final decisions.
For those New Hampshire small businesses that are considered rural (not in the Manchester-Nashua metro area), there is also the option to apply for a USDA Rural Energy for America Program grant.
This grant is competitive and can pay for up to 50% of the project cost. It does impact the tax basis for some other federal tax credits. We can help check your eligibility and assist with the grant application.
How long does the solar installation process take?
Most of the process is under our control and can be completed start to finish in three months or so depending on system size. The one unpredictable part of the timeline is getting an interconnection permit from the utility. For example, for projects between 100 kilowatts and 500 kilowatts in size, Eversource can take several months to complete their required studies.
How big a system do I need?
During our preliminary analysis, we look at available roof or ground area for the solar array as well as your annual electric usage. We also consider your budget and your ability to take advantage of tax benefits. We then come up with the best system size for your needs that makes the most economic sense.
What are other benefits of solar energy?
Every kilowatt-hour of solar generation added to the grid displaces electricity generated mostly from natural-gas-generating stations.
If we include the burning of the natural gas and the impacts of its leakage from pipelines into the atmosphere, the example solar array would displace more than 100 tons of equivalent carbon emissions per year!
NH Saves utility partners
What should businesses consider when thinking about adding solar project?
Many businesses have explored the benefits of reducing their carbon footprint with clean and efficient solar energy.
Before embarking on a solar installation project however, there are a number of things to consider in order to maximize the benefit of your system while reducing costs.
The NHSaves utility partners provide resources and success stories that help residents, businesses and towns learn more about energy efficiency and ways to save energy.
You will see the most value for your solar system by using as much of the energy that you generate whenever possible. Replacing oil and propane equipment with Cold Climate Heat Pumps (CCHP) can yield efficiencies of 350% and allow you to generate your own energy needed to heat and cool your building. Modern CCHPs can provide heating below -15 degrees Fahrenheit, making them an excellent option for buildings in the Northeast.
Your business can avoid problems and delays by reviewing the utilities interconnection requirements before contracting for your solar project.
A critical part of being able to connect to the grid and send power back to the grid is for the utility to review the utility infrastructure to ensure that there is capacity to handle the power being sent back.
What should a business do before embarking on a solar project?
One of the first steps will be to ensure that you improve current energy efficiency to reduce your existing load. This will allow you to install a solar array that covers a larger portion of your load, or potentially install a smaller system. Some of the common measures to take and improve your efficiency include:
Replacing all lighting with LEDs and install lighting controls: From sleek LEDs to smart lighting systems, these options light up your workspace while minimizing your environmental footprint. Discover the advantages of embracing LED technology, from cost savings to enhanced aesthetics and beyond.
LEDs can save more than 50% over traditional lighting while lasting for decades. Adding controls to the lighting will allow you to save additional energy though occupancy/vacancy sensing and daylight harvesting to automatically dim lights when adequate natural light is present.
Whether you own a restaurant and want to set the mood with your lighting, a retail store where bright light can positively impact sales, a school where proper lighting can affect test scores or a museum where lighting needs to be just right to maintain works of art, you can have it all when you make the switch to LED lighting with a smart-control system.
Ensuring that your building is properly weatherized:
Proper Building Weatherization can greatly improve the occupant comfort and improve indoor air quality of the building while saving significant energy. A weatherization project will typically involve reducing air leaks in and out of the building, and adding insulation to bring the building up to or above current energy codes.
Weatherstripping and caulking are just two of the many techniques that tackle small problems that can cause big energy loss.
Heating, Ventilation and Air Conditioning (HVAC):
Heating and cooling are typically one of the largest expenses in a building, so making improvements to the efficiency of your heating and cooling equipment can yield noticeable savings.
If you have older, inefficient or maintenance-ridden equipment, it may be a good time to consider upgrading your HVAC equipment to modern high-efficiency equipment with controls.
According to the Department of Energy, when you combine proper maintenance with recommendations on insulation and thermostat settings, you can save nearly 30% on your energy bills. Aside from being more efficient, caring for your HVAC system can also improve air quality and keep your building safe from carbon monoxide leaks.
What is NH Saves, and how can it help?
NHSaves is a collaboration of New Hampshire’s electric and natural gas utilities working together to provide NH customers with information, incentives and support designed to save energy, reduce costs and protect our environment statewide.
The NHSaves utility partners offer a wide variety of rebates on the products and technologies that help New Hampshire businesses and municipalities save energy and money. Learn more at nhsaves.com today.
What is a solar land lease, and how does such a project work?
If you own a large parcel of land anywhere in New Hampshire, a solar farm developer may approach you offering a long-term land lease. Solar farm developers look for large parcels of land, such as former farms or timber tracts, along major utility corridors for possible development.
On some occasions, the developer will offer to purchase the property outright, but far more often, the developer will offer a long-term land lease. This means that the landowner would still own the property, but it would be subject to a lease that may last 20 to 30 years.
Typically, a solar land lease is structured in several phases. First, there will be a due diligence period that may last several years.
During due diligence, the developer will conduct surveys, soil testing, environmental assessments and other investigations to determine if the site is suitable for a solar farm project. The developer will also pursue government approvals and permits for the project.
If all goes well during due diligence, then the lease will move to construction. The construction phase will have the most impact on the property, as there will be heavy construction vehicles, equipment and work crews coming and going.
The project will include the large solar panels that we are all now familiar with, as well as substations, power lines, access roads and other supporting infrastructure. Fortunately, construction should not take too long, and the lease will then move to the operations phase.
During the operations phase, the solar project will be up and running, producing electric power. This is the longest phase of the lease and may last several decades. This is also the most valuable part of the lease with the highest rent payments.
The final phase of a solar land lease is decommissioning. At the end of the lease, the solar project will be disassembled and removed from the property, and the land will be returned to a reasonably natural state.
What are the benefits and drawbacks of a solar land lease?
Some of the benefits of a solar land lease are obvious.
It allows a landowner to take an otherwise unproductive tract of land and turn it into an income-producing leasehold. All the due diligence, construction and operating costs will be paid for by the solar developer.
The developer should also pay the property taxes for the land on which the project is located. This is especially important, as commercial use, such as a solar farm, may be taxed at a much higher rate than vacant or agricultural land.
The long-term length of the lease could be a benefit or a drawback, depending on how you look at it. On the one hand, it creates a steady stream of income over a long period. On the other, it prevents you from using the property for any other purpose for decades.
A landowner must also be aware that there is no guarantee that the project will ever move to the operations phase. During due diligence, the developer has the right to terminate the lease if they determine for any reason that the site is unsuitable for a solar farm project, or if they are not able to obtain the necessary government approvals and permits.
It is important to consult with an experienced attorney before entering into a solar land lease, as there are other important considerations regarding taxes, inflation, liability and surety bonds.
Dan Weeks, vice president of business development, ReVision Energy n How does adding solar help a business?
Almost any business that owns its roof or land can install solar. On-site solar arrays are grid-tied, meaning a business has continuous access to power. And under the state’s net-metering program, it can sell any excess power that it generates back to the grid to receive a return on investment, while helping offset peak demand on the grid.
This saves ratepayers money. When paired with a storage system, there’s the added resilience of having access to backup power in case of a power outage. Having back-up power during an outage prevents downtime that would lead to revenue loss.
Solar and storage provide a strong return on investment, because it has a predictable double-digit, multi-decade rate of return and will provide reliable, consistent savings throughout its more than 25-year life span.
When you compare the long-term cost per unit of energy from solar versus buying power from the grid, the solar fuel source is just pennies per kilowatt-hour as opposed to fluctuating utility rates that can be as high as 30 cents per kilowatt-hour.
There are also currently federal incentives under the Inflation Reduction Act with a minimum tax-credit of 30% and the opportunity for additional tax credits which further reduce the cost of a solar energy system.
How does solar energy help create jobs?
Saving money on electricity allows businesses to reinvest those savings into the business to increase the number of jobs and expand its operations. By participating in solar, companies are also contributing to the burgeoning clean energy economy.
In New Hampshire, there are thousands of jobs directly and indirectly linked to solar and storage jobs in the state with the potential to add many thousands more as New Hampshire grows its clean energy economy.
These are also local jobs that pay well and can’t be outsourced. They are also family-supporting jobs that are particularly appealing to young people, who too often are leaving our state and not coming back.
How does solar help a business achieve its sustainability goals?
Increasingly, businesses want to do their part to address climate damage to ensure a safe future for our kids.
We see that a lot of younger employees entering the workforce want and expect their employers to do their part to address climate change and for them to be environmentally minded with a real sustainability plan. Solar reduces a company’s reliance on fossil fuels and helps offset its transition to electric vehicles, which allows the business to meet its transportation needs with clean, renewable, lower-cost energy.
How can companies that don’t own their facility, or can’t install a solar array on-site, take advantage of solar?
Businesses that don’t own their facility or can’t install it on-site can participate in an off-site community solar farm. A community solar farm is a solar array that is built elsewhere.
The electricity it generates is sent to the grid to benefit other energy users in two ways. They can be a shareholder, which allows them to be a part owner and therefore get 100% of the value that is fed into the grid from a different location in the form of credits on their monthly bill.
Alternatively, they can be an off-taker. The company wouldn’t have a capital investment in the array and would receive more modest credits for their participation.
