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There is a NEW incentive program about to launch in its second year in Connecticut, which is funded by your Electric Utility and will financially motivate business owners to adopt and install Solar Electric systems on their rooftops. This is one outcome from the sweeping Energy Legislation that was passed into law July 1, 2011. The program from UI and CL&P offers a very generous financial incentive, frankly better than we’ve ever seen for Solar Electric PV in Connecticut.
What are ZREC’s you ask? Zero Emission Renewable Energy Certificates, (pronounced “z- wrecks”)
which represent the “green attributes” of one megawatt hour (MWh) of electricity generated from Solar Energy. These accumulate over the period of one year, and their value (under the CT program) is paid to you in quarterly checks from CL&P or UI at a fixed rate for fifteen (15) years! ZREC’s are intended to promote the growth of distributed Solar power generation by shortening the return on investment timeframe. As an example, an average 100KW Solar system will pay its owners $20,000 per year in ZREC payments for 15 years. Oh, and by the way you also get to keep the electricity generated by this solar array on your roof, (estimated energy value = $15,000). The Connecticut ZREC program is currently the best solar program in the USA.
Public response to the 2012 Solar incentive program was overwhelming, CL&P received 479 applications, UI received 107 applications to it “small tranche” ZREC program in January of 2013. In April 2013 the utilities will again be accepting applications for their “large and medium tranche” ZREC program, with the “small tranche” ZREC program following in the fall of 2013. We are expecting that the ZREC programs again will be very competitive and overprescribed.
Three points to peak your interest about this news:
1. UI or CL&P will offer a FIFTEEN YEAR (15) fixed price contract to incentivize you to invest now in a Solar Electric system. The annual pay-out is based on per kWh for the generated output from your system, AND you keep the electricity that you generate! This annual payout is a substantial monetary number… (Need capital to replace or extend the life of your aged roof? This “fund” could provide the dollars).
2. Federal Tax Credits and Bonus Depreciation for 2013 will reduce the system cost by roughly 60%. Combine this with recent lower Solar Panel costs, plus the UI or CL&P’s incentives and we now have a capital investment that provides a 5 ½ year payback with an attractive IRR (unleveraged) that shows a positive after-tax profit every year!
3. This Solar Electric system will allow you to hedge energy costs for 25 years. Provides a clean, reliable alternative, and is good for the environment. Reduces your expenses which is great for your bottom-line, and from a marketing standpoint, “green is good” as a social message to you customers.
In conclusion: Every Connecticut Business today could use an “edge” for the future; this will be one that differentiates!
If this interests you, I simply need 15-30 minutes of your time to explain the nuances and can share with you a financial pro forma based on a Solar PV system tailored to your building and your electrical demand. We have an excellent external consultant(Jeff Lendroth) who is an expert in this field and has been actively involved in helping to shape the policy in Connecticut. Jeff also has hands-on experience asisting with the installation of Solar Electric and Solar Thermal systems in Connecticut.
As always, we approach this solution with honesty and the integrity you expect from the Pat Munger Construction Company. We can make this process very simple for you and your business.