Solar Subsidies are Available at the State Level
What Types of State Solar Subsidies are Available
Depending on your location, a solar project may be able to take advantage of subsidies at the state level. Most states have Renewable Portfolio Standards, that are regulations which target increased production of renewable energy over a certain period of time. For commercial and industrial clients, that usually translates into Renewable Energy Credits (REC’s), which provide a pre-agreed payment schedule for energy produced by your project. In most cases, the utility will pay the incentive. Solar subsidies (REC’s, SREC’s and ZREC’s), combined with the federal investment tax credit (ITC), make most solar projects cash-flow positive every year, starting in year one. Contact MSL Group (Ext. 277) for a free consultation.
Case Study – Connecticut Subsidies – ZREC’s
If a property owner installs a 100kw DC solar array in Connecticut and is able to secure a tsandars 15-year subsidy (ZREC), the property owner would receive an annual payment from the utility (Eversource or United Illuminating), for the electricity produced. Payments are made annually for 15 years. Assuming that a 100kw DC solar array produces 120,000kwh AC per annum, the subsidy would be approximately $10,000 per year for fifteen years. This local subsidy, combined with the federal solar tax incentives and lower solar panel costs, provides an excellent return on investment.
For utility-scale renewable energy projects, debt and equity combination packages are available. Most projects will include some type of renewable energy credit subsidy and tax credits. Contact us if you are a solar developer looking for an investment partner. We offer co-development services for utility-scale solar projects.