Why Solar Is A Sound Business Investment

The list of expenses that every business has is a long one. Employees must be paid. An office has to be bought or rented. Business services need to be setup. However, some of these expenses can be reduced and controlled. One such expense is electricity and it can be better managed through the investment in solar panels. The advantages of solar power go far beyond just the basic reduction of monthly electricity costs. The business side economics of installing solar can actually end up increasing an organization’s profits. The following provides a comprehensive look at the advantages when solar is integrated into a company.

1. Monthly Savings

The concept that solar panels can actually create savings is becoming more and more sound. A few decades ago, this was not the case. It simply cost too much to install the panels and few, if any, of the government incentives that now exist were around back then. But that was the past.

Over the last few years, while electricity prices have jumped up, the price of solar panel installation has come down considerably. In 2016, the average monthly electric bill of businesses in the U.S. was nearly $655. In some states, such as Eastern Maryland, the average monthly electricity bill can be more than $1,000. Depending on the size of the solar panel system, a business could avoid paying a monthly electric bill all together, or at least make a significant dent in it. And while there is an upfront cost of the solar panel system and its installation, most businesses are able to pay it off in an average of 7-10 years due to tax incentives. After that, the business reaps the reward of free electricity for 25+ years or more with quality equipment.

2. Annual Savings

There are additional savings that businesses can begin to see soon after installing solar panels. One of these savings comes from the Federal government’s solar Investment Tax Credit. The ITC provides a 30% tax credit for solar panel systems on commercial and residential properties. This tax credit is so lucrative to businesses and homeowners that solar installations have grown by 1,600% since the ITC’s inception. This tax credit is going to slowly be reduced to 10% for businesses over the next five years, making it worthwhile to consider installing a solar panel system sooner rather than later.

But the tax incentives of a solar panel system go beyond the ITC. There is also the benefit of accelerated depreciation. 1986’s Modified Accelerated Cost Recovery System, or MACRS, allows businesses’ qualifying solar panel energy system to get a five-year cost recovery annual deduction. If a business does not claim its ITC grant, it can get a 100% deductible. If they do, they must reduce the project’s depreciable basis by half of the ITC value, which is usually half of the 30%. In other words, business owners can deduct 85% of their tax basis.

And then there is the bonus depreciation. This additional tax claim that businesses can make was first implemented in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Since 2011, the bonus depreciation sat at 50%, however the full 100% bonus was renewed with the 2018 tax law, details of which can be found in Investment Credit/Energy Credit Code, Section 48 Bonus Depreciation Code, Section 168.

3. Incentives By State

The monetary incentives of installing a commercial solar system do not end with the Federal government. Many states are implementing various incentives for commercial renewables and building efficiency. The following is a sample of the incentives from mtvSolar’s service area:

West Virginia: The state has three financial incentives in place that encourage the use of solar energy systems:

  1. AEP Appalachian Power-Non-Residential Prescriptive Rebate Program
  2. FirstEnergy (Mon Power & Potomac Edison)-Business Lighting Incentive Program (Rebate Program)
  3. AEP Appalachian Power-Non-Residential Custom Rebate Program

Maryland: The state has 2 financial incentives for solar energy systems, including:

  1. Solar Renewable Energy Certificates
  2. Property Tax Exemption for Solar and Wind Energy Systems

Pennsylvania: The state has a handful of commercial solar system incentives, including:

  1. Solar Alternative Energy Credits
  2. City of Philadelphia-Streamlined Solar Permitting and Fee Reduction
  3. Alternative and Clean Energy Program
  4. High Performance Buildings Incentive Program
  5. Small Business Pollution Prevention Assistance Account Loan Progam

Virginia: The state has several incentives to encourage businesses to invest in solar power, including:

  1. Arlington County’s Green Building Incentive Program
  2. Sales Tax Exemption for Energy-Efficient Products
  3. TVA-Mid-Sized Renewable Standard Offer Program
  4. Energy Project and Equipment Financing
  5. Small Business & Non-Profit Loan Program
  6. TVA-Solar Solutions Initiative

mtvSolar’s consulting team can work with your accountant to determine which incentives are applicable to your business. In addition to solar, mtvSolar can help with energy storage for demand reduction and advanced LED lighting upgrades.

4. Local Economic Growth

Many solar installation companies are local companies. They employ local citizens with high-quality work that pays well. These solar employees then invest money back into the local economy with their purchases. When a business hires a local solar company to make an installation, the employees it hires to fulfill that work could very well come back and become customers of that business.

5. Guiding Company Culture

When a company decides to ‘go green’, they are saying something to their employees and the world. They are demonstrating how much they value the environment and they are encouraging their workforce to make similar efforts privately. Employees, especially in the newest generation to join the workforce, want this. They want to work for a company that is sustainable and they are beginning to take this into consideration when they are weighing job opportunities.

6. Increase Profits

Customers care about who their products and services come from. They want to know that no one and nothing is being harmed, and that includes planet Earth. Installing a solar system is a great way for a business to show its commitment to the environment and to making an ethical product or service. Additionally, a great option for getting the attention of current and potential customers is to make a marketing announcement once the solar system has been installed. It is common for mtvSolar’s clients to hold ribbon cutting events and invite the local media.

Solar energy systems are only becoming more and more worthwhile for businesses to invest in. They can add directly to the bottom line, they enhance employee satisfaction, they help to grow the local economy, and they attract customers. To find out more about how your business could benefit from installing a solar energy system, please contact mtvSolar today!

The Importance of Licensed Electricians When Installing Solar Power

You’ve decided to make the leap to solar power. It’s a major step towards lowering your energy bills – and possibly eliminating your electrical utility costs completely. According to the Solar Energy Industries Association (SEIA), the solar industry is expected to continue growing at a record pace. What this means for those looking for residential or commercial solar energy solutions is – lower prices.

Statistics show that the US experienced a 70% drop in the cost to install solar over the period from 2010-2017. From public schools to Fortune 500 corporations, solar systems are being installed at a record pace – “enough to offset 1.1 million metric tons of carbon dioxide emissions each year.”

Deciding to Add Solar as a Home Remodeling Project

When thinking about your home remodeling project, that’s also a good time to consider upgrading your utility systems – especially adding solar to increase your home’s energy efficiency. But, adding solar power (also called, PV systems) are also a stand-alone project which will add substantial value to your home if you decide to sale. A recent studyfunded by the U.S. Department of Energy states the following:

…on average, homebuyers are “consistently willing to pay solar home premiums” of approximately$4 per watt of installed solar capacity. For a standard 6-kilowatt (kW) solar PV system, that means solar can add $24,000 to home resale value.

Owning your own solar energy system typically brings a return on your investment within 10-12 years. After you’ve reached that point, every bit of energy your home or business will use – is totally free, courtesy of Mother Nature! Your property will join the proud group of landowners that contribute zero greenhouse gas emissions into the environment, while helping our nation to reduce its dependence on imported fossil fuel sources.

Hiring a Licensed Contractor for Solar Installation

After you’ve had your home’s present electrical system evaluated and your roof structure inspected for stability, the next steps include choosing your solar system vendor and installer, completing the proper documentation, and obtaining your installation permits. Before your equipment is even delivered, it is important to know that your installer has a Master electrician on staff and is a licensed electrical contractor for the final steps in owning your new solar system: installation, approval, and making the interconnection with the power grid.

When you choose a solar installation company, you should expect your PV installation to be completed by certified professionals. Although the specific definitions vary from state to state, an electrical contractor can be an individual or a business owner that employs certified electricians to safely install electrical systems. The contractor should have insurance and appropriate licenses to protect the business, the employees and the clients from liability and unexpected damage.

A general look at the installation process (which could take anywhere from 1 day up to 3 days) will show why it is important to use licensed electricians when installing solar:

  • install wiring between new electrical panel and the power system
  • racks are attached to the roof or at other location to support the PV panels
  • PV panels are professionally installed onto the racking system
  • the PV system’s inverter is connected to the new electrical panel
  • installation of power meter(for net metering) to obtain utility energy credits

While these steps may look straightforward at first glance, there are a number of installation and electrical wiring mistakes that have become common when examining systems that fail or operate below the expect performance level. Under-sized wiring and loose connections are a common cause of electrical fire or poor performance. The reasons why solar installations require quality technicians who also abide by legal requirements and safety considerations include:

  1. Alicensed electrician is required to sign-off on the installed grid connect installation, certifying that it has been inspected and the installation is found ‘to adhere to electrical code and is deemed safe’
  2. To ensure the PV panels have been attached to the roof structure and not the roof sheeting, providing sound mechanical support for the entire system
  3. A skilled PV installer knows the difference between north and south and will install the system in the direction and location for the greatest amount of sunshine to the solar panel over the course of an average day
  4. DC wiring can be dangerous if done incorrectly. If the electrician does not recognize the different wiring required for polarized circuit breakers versus non-polarized circuit breakers, the unit can catch fire when it is switched to the ‘off’ position.
  5. The electrician must understand proper earth and ground bonding principles.The proper grounding of a photovoltaic (PV) power system is critical to ensure safe operations.

In the United States, a Licensed Master Electrician is trained and certified in the National Electric Code (NEC) and follows industry-wide best practices for solar system installations. These trade professionals are skilled in all aspects of electrical installation and troubleshooting. A master electrician ensures your solar is installed following local and national codes and according to detailed equipment specifications, wiring schematics, and system design layout.

Choosing Your Solar Installation Service Provider

When you choose solar for your residential or commercial property, you are making a long term investment which lasts 25+ years. Technical knowledge combined with craftsmanship is important. Unlike other power systems, solar panels will become a part of your landscape or your home’s exterior roofing. Many decisions need to be made, from orientation to location to the proper power generation levels.

Choose a PV installer that provides multiple solutions, such as battery storage systems and commercial demand reduction. This will help you choose an experienced contractor which will offer larger projects greater flexibility in power generation. It is also a good idea to check the company’s customer reviews and their standing with the Better Business Bureau (BBB) to ensure they operate with professionalism and responsibility to their customers.

Finally, ask your contractor to see a copy of their license and insurance. Take the time to review the company’s installation portfolio and check their references which should include recent projects the company has completed. The best solar installation service providers will have a good mix of residential and commercial projects, such as municipal buildings and manufacturing facilities, and crew members with NABCEP certifications.

To begin your journey in energy independence and operating a sustainable household or business contact mtvSolar today!

Mountain View Solar’s Community Involvement in WV

Committed to Training & Public Facilities Solar

Mountain View Solar is deeply rooted in our community here in Berkeley Springs, West Virginia. We had our start in the custom home building industry, and over those years became known as one of the Eastern Panhandle’s premier builder of custom green homes. Building homes designed to use less energy inspired the idea to also create some of the energy the homes would use. This led us to our transition to renewable energy systems in 2006.

mtvSolar has become one of the region’s most capable solar installation companies, and by far West Virginia’s largest PV integrator, installing over 75% of the solar in West Virginia. Our installations run the full spectrum, with residential, commercial, and municipal work forming the majority of our installations.

Along with our focus on solar PV installation, we have been active in WV as an educational and advocacy group, and have helped guide policy in the state to support renewable energy and its many benefits. Along with the obvious benefit of supplying clean, affordable energy, we are helping shape policies that will create jobs in our industry and in our state. Mountain View Solar’s involvement includes re-training coal miners for work in the solar industry, as well as providing on the job training to interns from local schools.

Education and training provided by mtvSolar has helped us extend our reach in West Virginia beyond what would be otherwise possible, and has created jobs across the state. Mountain View Solar got worldwide recognition with a Morgan County installation aired on BBC World News in 2010. The segment featured mtvSolar installing a 5.98kW Solar PV array & solar hot water system on the home of Dr. Donald and Selma Straus.

mtvSolar is proud to have installed most of the solar currently installed on West Virginia’s public facilities, including schools, libraries, court houses, water treatment plants, and more!

Click here for more information on our local community giveback program.

Notable installations include:

Berkeley Springs High Green House, 2010, 1.84kW + hot water
Hurricane WWTP, 2011, 19.74kW
Morgan County Courthouse, 2011, 25.38kW
American Public University, 2011, 406.8kW
Department of Environmental Protection, 2012, 24.255kW + hot water
Monongalia County Urban Mass Transit Authority, 2012, 140.1kW
Shepherd University, 2012, 1.88kW
Warm Springs Middle School, 2012, 1.88kW
Lakewood Elementary, 2013, 5.64kW
Mountain Institute, 2013, 3.055kW
Sissonville Middle School, 2013, 5.64kW
Harpers Ferry Library, 2014, 3.24kW
Main Street Martinsburg EV Chargers, 2014, 1.06kW
Shepherdstown Presbyterian Church, 2014, 16.2kW
Asbury United Methodist Church, 2015, 9kW
Warm Springs Intermediate School, 2015, 1.76kW
Fairmont State University, 2016, 4kW
Sustainable Solutions, 2016, 7.98kW
Charles Town Tuscawilla WTP, 2016, 21.66kW


Warm Springs Middle School


Charles Town Tuscawilla WTP


Shepherdstown Presbyterian Church


Hurricane WWTP


Morgan County Courthouse


American Public University

Living On Batteries During An Outage

Consider this: When the utility grid is operational, there is a limitless supply of energy. It is extremely reliable and constant. Day to day, you may not think about how much power you actually use.

However, once the grid fails and you’re running off-grid via solar and batteries, how you approach energy use must change drastically. There is a suddenly a very finite amount of power available. Even small appliances can use more power than you realize!

The energy stored in a battery is referred to as kilowatt-hours (kWh). One kWh is 1000 watts for one hour. Let’s assume for the sake of simplicity that you have a total of 20kWh of usable energy storage. This is the average size of batteries that we’ve historically installed. Let’s also assume for the moment that it’s nighttime and no solar energy is available.

If you run a 2kW (2000W) space heater at full power for 5 hours, that’s 10kWh of energy used. If you run the same heater for 10 hours, that’s 20kWh. Therefore, the 20kWh battery in our example would be depleted if that heater alone were run for 10 hours.

Conversely, a bunch of LED lights totaling 50w could run 24/7 for many days on that same battery, even without solar gain. To determine how much power that is, 50w = 0.05kW x 24 hours = 1.2kWh per day. This simple formula applies to all loads. Take the amount of wattage listed on the label multiplied by time to arrive at the energy needed for that load.

Mountain View Solar designs most battery backup systems to power certain critical loads. These loads were discussed before the sale to determine how much solar and battery storage you’d need to operate day to day if the grid were to fail. Typical critical loads would be a refrigerator, well pump, lights, microwave or coffee pot and some receptacles. Adding loads that weren’t planned for will deplete the battery sooner than expected.

One of the fastest ways to deplete a battery is via resistance heating. Even a small space heater as described above can quickly use up all the stored energy. Therefore, we typically avoid putting electric ovens, cook-tops, water heaters and heating loads in the critical loads panel. Heat is best obtained directly via wood or pellet stoves, and propane heating appliances. Light bulbs should all be LED, rather than incandescent.

The lifespan of a battery is measured in cycles and depth of discharge (DOD). A cycle is defined as a discharge / recharge operation. DOD is defined as how much of the stored energy is used during that cycle before recharged completely. When a grid-tied battery backup is on standby, the batteries are in a float condition. This keeps them topped up to 100% charge and will last many years. Once the grid fails and that battery is cycled, the lifespan is reduced more rapidly. The lifespan can be increased if less power is used between the recharges, so conserving power is more important, even if ample stored capacity is available for use.

One way to avoid excessive DOD is to run larger loads only during the day when solar can help out. For example, run appliances only while the sun is up, or as close to sunrise as possible. This will enable the solar to run the loads rather than discharge the battery, and possibly recharge at the same time if extra power is available. Turn as much off as possible before sunset to retain as much energy in the battery through the night as possible.

Another solution is an automatic or portable generator. If your system is equipped with an automatic generator, the generator will start when the batteries reach a low state of charge, and recharge the batteries. It will then shut off automatically. If you have a portable generator, periodically check the battery charge level on your system’s control panel. If the battery level is getting low, fire up and connect the portable generator and the system will begin recharging the batteries.

Once utility power is restored, the system will automatically resume operation of the loads on utility power, fully recharge the battery, and begin floating it to be ready for the next outage.

It may be a good idea to perform a power outage drill. To do so, turn the main breaker in the service panel off to simulate a power outage. At this point, your critical loads will be running on batteries and solar, off-grid. Observe how your use of energy affects the battery charge. Once complete, turn the main breaker back on to simulate restoration of utility power.

The description above is simplified as many technical factors affect batteries, lifespan and available power. However understanding these basics will enable you to maximize the use of your system. If you have solar and want batteries, or are interested in a backup or off-grid solution, please fill out our free estimate form.

EmergencySystems

Keep your water flowing and refrigerator cold during power failures

Introducing mtvSolar’s Super Critical Loads battery backup systems, an affordable alternative to a full size battery system.

These entry level battery backup systems have enough power to keep your refrigerator, well pump and some lights operational.

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During normal operation the utility or optional solar will keep the batteries topped up and ready. If you’re off-grid, a solar array will serve this purpose.

We can include a portable generator plug to charge batteries in the event of an extended outage. With a battery backup, the generator doesn’t need to run non-stop. Instead, you run it only when your batteries need a charge. Peace at last!

Apply for a free consultation today!