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PV in Commercial Buildings
Concern for the environment is becoming more prominent in
day-to-day business and purchasing decisions. Customers and
clients often consider businesses that demonstrate a commitment
to environmental protection more favorably. One of the ways to
show your commitment to a cleaner, more sustainable future is
through the use of solar energy at your facility. The visibility
of a well-designed solar energy system can send a powerful
message to your customers that you are supporting efforts to
improve the environment on Long Island.
PV systems are environmentally attractive because they
produce clean energy, but they are also aesthetically pleasing
and can provide economic benefits as well. PV incorporated as a
building element is the only architectural feature that can
provide a payback by generating electricity.
The word photovoltaic means producing electricity directly
from sunlight. It does this without creating any pollution.
Photovoltaics are referred to as PV or solar cells.
PV cells are made of a semi-conductor material. When light
enters the cell, some of the photons from the light are absorbed
by the semiconductor atoms, freeing electrons to flow through an
external circuit and back into the cell. This flow of electrons
produces electric current.
Business owners and commercial users are uniquely
positioned to capitalize on the other important factors:
- PV’s electrical output matches patterns of energy use in
commercial buildings, promoting effective management of
electricity demand.
- PV applications are now being integrated directly into
building roofs, walls and surrounding spaces; and these
technologies are evolving rapidly.
- Business-owned PV systems are eligible for tax
advantages, such as accelerated depreciation and a ten
percent Federal income tax credit.
- Investing in renewable energy send the message that you
care. The environmental benefits are realized both at your
commercial building and in the global community. Renewable
energy can help reduce the nation’s reliance on foreign
energy suppliers.
Rebates and Incentives for Commercial PV Applications
LIPA is helping its customers harness the power of the sun by
offering financial incentives to encourage the use of solar
power, In addition to LIPA’s incentives, a Federal Tax Credit
Program is also available.
LIPA’s Solar Pioneer Program Rebate
For commercial grid connected PV systems, LIPA’s rebate is
$3.50/watt, with a maximum rebate of $35,000 (up to 10kW) per PV
installation.
Investment Tax Credit for Solar Energy Property
Commercial customers can also take advantage of the business energy
tax credit, which has permanently been extended as part of the
passage of the Energy Policy Act of 1992. Anyone who invests in or
purchases qualified solar energy property can take the credit, up to
10% of the investment or purchase and installation amount, when
income tax forms are filed. Solar energy property is defined as
equipment that uses solar energy to generate electricity to heat or
cool (or provide hot water for use in) a structure, or to provide
solar process heat. Only commercial entities can take the credit.
Investment Tax Credit
Energy Efficiency First
As always, when you consider incorporating renewable energy
features, you should first be sure that the building is energy
efficient. Other equipment such as lighting, air conditioning
systems and motors, should be evaluated to see if
cost-effective, energy-efficient alternatives are available.
This makes a good complement to the use of renewable energy in
reducing power consumption or shaving peak electric demand.
PV as Architectural Features
Building integrated PV, that is, photovoltaic applications that
are built into the building’s structure, offer a range of
dynamic opportunities for design in energy systems for
buildings. PV power is now built into roofing shingles and tiles
that are both functional and easy to install. PV awnings and
carports can be added to commercial buildings to capture the
sun’s energy while providing shade from its heat. All this ads
up to one solid fact: PV and commercial buildings are a natural
match.
Types of PV Applications
PV can be applied in several different ways:
- Non-dispatchable PV systems generate power
whenever there is daylight. When the power is supplied to
the building there is only coincidental demand savings.
- Dispatchable PV systems utilize a portion of the
solar resource to charge batteries. The energy stored in the
batteries can then deliver power to the building’s
electrical system or the grid whenever it is of greatest
value.
- Uninterruptible power from the energy
stored in the batteries can also be to provide power to
critical equipment such a phones, security systems, and
emergency lighting.
When energy is not needed from the batteries, the full output
of the PV array will help to displace electric power from the
utility system.
LIPA Commercial/Industrial Customers wishing to contract with
LIPA for parallel operation of their photovoltaic systems will
need to complete LIPA's
Commercial/Industrial Photovoltaic PV Program Application
The installed PV system must be 300 Kilovolt-Amperes or less.
Costs
A standard commercial, grid-connected PV system, installed,
costs approximately $7,500 per kW. Costs will depend on your
system’s configuration, your equipment options and other
factors. Remember, LIPA’s current Solar Pioneer incentives and
the Federal Tax Credit Program can reduce the overall costs of
installing a PV system.
For more information, contact LIPA’s Energy Infoline at
1-800-692-2626 |