Tag Archives: Corporate Solar

Should You Consider Solar for Your Manufacturing Facilities?

When it comes to investment opportunities for manufacturing facilities, there is no shortage of options. There are many potential solutions with attractive ROIs, but have you considered that your facilities’ electricity source could be one of them? Solar is a practical solution for manufacturing facilities that can often be overlooked. In this article we’ll spell out the case for solar in manufacturing that could be hiding in plain sight. 

An aerial view of the rooftop solar array installed at Protolabs, located in Plymouth, MN.

Roof Conditions and Location 

Manufacturing facilities often have large, flat roofs that possess ideal conditions for an effective solar array. Ample space is available for the number of panels required to achieve the building’s desired electricity offset, while the panels can be oriented due south to soak in the most sunlight and achieve maximum production. 


The typical location and height of manufacturing facility roofs also ensure that shading from nearby buildings or trees won’t interfere with the array’s production, and additional installation costs associated with multi-story buildings are avoided.    

Electricity Use, Peak Shaving, and Reliability

Manufacturing facilities consume a lot of electricity. According to figures from the EIA, they use 95.1 kilowatt-hours (kWh) of electricity per square foot each year. In a 10,000 square-foot facility, that would equal the annual electricity use of 80 homes! 

Manufacturing facilities consume most of their electricity during the day, making solar ideal for savings through a process called peak shaving. Electricity is more expensive during the day’s peak demand hours, which often make up 30-70% of an electricity bill. Electricity generated by solar panels is used to ‘Shave’ off the peak electricity loads, and significantly reduce the cost of demand charges.   

Grid-tied systems ensure reliable access to electricity. During the day, grid-tied facilities use electricity generated by solar panels, and at night or in cloudy weather, the facility uses electricity from the grid. With grid-tied systems, there is no risk of there is no risk of interrupting your facility’s operations. 

Reducing and Stabilizing Electricity Costs For Your Manufacturing Facilities

Solar is guaranteed to reduce electricity costs. Utility bills represent 30% of operating costs for the average organization¹, wile solar has been the world’s most affordable electricity source since 2016², with the price dropping by more than 70% in the past decade³. 

Solar offers price stability. US electricity prices have increased at a rate of 1.8% per year for the past 25 years according to the EIA. As electricity costs continue to rise, savings increase and your facility will pay a steady reduced rate for electricity. 

Sources: Rocky Mountain Institute¹, International Energy Agency², Solar Energy Industries Association³. 

Sustainability Goals

Solar is an effective way to achieve sustainability goals. Solar doesn’t produce air pollution or greenhouse gasses, and a rooftop solar installation can earn more LEED® points than nearly all other green building initiatives.

Considering Solar for Your Manufacturing Facilities? We’re Here To Help.

IPS has been helping organizations implement solar for over 30 years. We’d be happy to answer questions, illustrate what solar would look like, and demonstrate the financial payback for your facilities. Request a quote today to get started!

The Impact of the DOC Solar Investigation and Possible Tariffs

April 2022 | Eric Hanson, Chief Operating Officer, Impact Power Solutions

The DOC Solar Investigation is looking at possible circumvention of anti-dumping laws (AD/CVD) by imported solar modules and it’s sparking uncertainty for US companies and the solar industry. IPS’ Chief Operating Officer, Eric Hanson, shares his insight on how the investigation is impacting the sourcing of these modules and the development of commercial solar projects. We ask him how our projects are going, what we’re doing to avoid future issues, and how companies looking to adopt solar should react to this news.

What’s Being Reviewed in the DOC Solar Investigation

The US commerce department is analyzing a case brought by domestic manufacturer Auxin, which states that they and other domestic manufacturers have been harmed by companies importing panels below their true cost. A similar tariff has been on the books since 2012 which covers, of all things, washing machines and solar panels imported from China. The US government determined that panels and cells made were being sold at a below-market rate. Since that time there’s been an 18-28% tariff against certain Chinese panel manufacturers. The new case alleges that manufacturers in other countries – Vietnam, Cambodia, Malaysia, and Thailand – are doing the same thing.

The Difference Between the DOC Solar Investigation and the Previous 201 Trade Tariffs

The previous section 201 trade tariff had a bi-facial exception, which basically meant that any bifacial panel was not subject to it. It was a pretty big tariff, about 30%, now it’s ramped down to roughly 15%. The DOC Solar Investigation is similar to the 2012 anti-dumping tariff. If this petition is accepted by the department of commerce, it would be retroactive, and very large, 50% – 250% on top of the price of these modules and retroactive to some point, possibly to the beginning of this year, or to March of this year. No panel manufacturer feels confident that if they deliver right now, it wouldn’t be subjected to this tariff. It’s created a freeze on panels across the industry, and not the kind of freeze we’re accustomed to here in Minnesota.

Project and Product Delays

Projects are going great in 2022! It’s probably going to be one of the biggest years ever for IPS. The most significant delays we’re seeing are with inverters, lead times that are about double what we have been accustomed to. Instead of a typical 8-week delivery window, it’s now 20-25 weeks. We’re also noticing certain inverter manufacturers that don’t have any stock for the rest of the year. For the most part, though we’ve been able to pivot and find reliable manufacturers that we can use. At this point, we have not seen too many cancellations. You are able to install racking and inverters and wiring and conduit before you have modules, but we typically don’t do things that way. We would never start a construction project without procuring the modules or knowing that we have a path to procure them at an agreed-upon price. Typically the delays are due to supply chain issues. With inverters, for instance, there are a lot of PCBs with microchips, and every industry is fighting for microchips at the moment. But the largest single issue for us right now is transportation– it’s either too expensive, which causes suppliers to decline shipping if their freight numbers (usually included in our price) or a lack of delivery drivers. In many instances, we can’t get products across the ocean to the US.

What We’re Doing to Avoid Issues

North American panels are accessible to commercial installations, on a very limited basis. Typically the annual output is going to be a lot lower, so it’s pretty difficult to count on them to cover all of our needs throughout the year, knowing that there are quite a few companies like ours around the country. We have not looked into the secondary market, but we have looked at a lot of suppliers through Amicus, our solar buyers’ cooperative. We have seen some supply due to canceled orders from larger companies. We’ve really tried to open up the old Rolodex and talk with as many reputable distributors as possible. I think we’ve done a pretty good job at locating inverters and racking – modules are the only item hanging out there. As of today we haven’t had an issue locating modules, but I think that will likely change in the next couple of months.

How the DOC Solar Investigation will Impact the Commercial and Community Solar Market

If module supply is reduced by potentially 80% prices will go up. If that’s the case on the community solar front we’ll see delays as developers choose to wait out the current issues. For commercial customers, some will choose to move forward but many will wait out these problems as well. Both markets are less price-sensitive compared to utility-scale, with residential projects being even less price-sensitive than commercial and community-scale.

Implications for Companies Considering Solar

The biggest implication for any customer looking to install solar this year or next year is to act fast, to be very blunt. There are modules out there, we have a relatively solid supply of modules now, but that could change dramatically in the next several months if market dynamics do not change. If solar is a strategic initiative for your company this year or next year, due to the recent decision by the DOC, I would definitely say that you should act as soon as possible. If you have a proposal in front of you that makes financial sense, now is the time to do it and I think it’s going to get a little bit more uncertain as we move forward toward the end of 2022.

Is Solar a Strategic Initiative for Your Company? We Can Help.

If your company is considering sustainability initiatives, renewable energy, or energy efficiency improvements, we’re happy to hear from you. Impact Power Solutions has been helping organizations implement solar projects for over 30 years. If you’re interested in learning more or want to see how solar can work for your organization, reach out to us today!

Understanding your Commercial Electricity Bill

Understanding your Commercial Electricity Bill

Despite the fact that energy consumption is often one of a business’s biggest overhead costs, electricity bills are generally paid without a second glance. Understanding your commercial electricity bill will allow you to pick out the relevant information that impacts your energy strategy. This can be particularly helpful for companies that are considering sustainability initiatives, renewable energy, or energy efficiency improvements.


Let’s look at this sample Xcel bill from a commercial client and dig deeper to see what lies beneath that total monthly charge. 

Found on Xcel Bill Page 2

Electricity Charges

What You Need To Know:

The electricity charges section breaks down each component of your total monthly bill. Some charges include usage units and a per kwh rate, which show how they are impacted by your monthly energy usage. 

It’s also worth taking a closer look at the charges that aren’t explained on the bill. The Resource Adjustment includes costs related to several different conservation and renewable energy programs. Each program has a per kilowatt hour rate that is multiplied by your billed usage to formulate the total charge. The Affordability Charge is a flat monthly surcharge that offsets costs of offering bill payment assistance and discount programs to low-income customers. The charge varies based on customer type, and this commercial client pays $3.60 per month.

So what is the difference between a Charge and a True Up? Each year Xcel predicts the costs of energy and sets rates based on those predictions. When actual energy production costs rise or fall, Xcel adjusts prices accordingly and adds the difference to your bill as a ‘true up’. If energy prices fluctuate multiple times during the month, there will be multiple true ups. The total kWh of those true ups will equal your total billed usage.

Resource Adjustment Note:

Energy subsidies have long been a controversial topic. Virtually all sources of energy are subsidized, and unlike some subsidies, this one is directly mentioned on the bill. Powering your facility with solar can directly reduce the amount you pay into this fund.

Electricity Charges Glossary: 

  • Rate: Xcel charges customers different rates for their energy, depending on their maximum demand. This customer’s demand is 708 kW, which falls under the General Service Rate.
  • Basic Service Charge: This charge stays the same regardless of your usage. It covers the cost of providing you with energy service, such as electric and gas line maintenance. 
  • Energy Charge: This is the amount you pay per kwh for electricity usage. It includes the cost to generate the electricity you use, and costs to own, operate and maintain the power plants that produce it.
  • Fuel Cost Charge: This is the cost of the fuel used to generate electricity. It is a straight pass-through to you. Electric utilities calculate the total cost for fuel sources to generate electricity each month and pass those costs on to you as charges.
  • Sales True Up:  Each year Xcel predicts the costs of energy and sets rates based on those predictions. When actual energy production costs rise or fall, xcel adjusts prices accordingly. These adjustments show up on your bill as ‘true ups’. If energy prices fluctuate multiple times during the month, there will be multiple true ups. The total kWh of those true ups will equal your total billed usage.
  • Demand Charge (winter): Xcel applies demand charges based on the maximum amount of power that a customer uses in any 15 minute interval during the billing cycle. Demand charges usually apply to commercial and industrial customers, who tend to have higher peak loads. The rate for these charges changes seasonally. 
  • Affordability Charge: This is a surcharge to recover the costs of offering bill payment assistance and discount programs to low-income customers. 
  • Resource Adjustment: This includes costs related to several conservation and renewable energy programs. You can see the full list here. 
  • City Fees: In some cities Xcel Energy is required to collect a fee on behalf of the city.

Meter Reading Information

What You Need To Know:

The meter reading information section breaks down your energy usage during the last billing cycle. In this section we are looking for two things: your total billed energy usage and your instantaneous demand.

Your total billed usage can be found in the Total Energy row. Since your meter counts up cumulative energy used, the Current Reading isn’t actually the amount of energy used this month, its the total amount you’ve used since the meter was installed. You can take the Current Reading and Subtract the Previous Reading to find the amount of energy used this month. Use the multiplier in the top left-hand corner of the table (in this case 300) to get your Billed Usage in the far right column.  

The Demand row of the Billed Usage column shows the maximum amount of power you used within a single 15-minute interval. 

These two numbers show up as the Energy Charge and Demand Charge in the ‘Electricity Charges’ section of your bill. 

Meter Reading Information Glossary:

  • Current & Previous Reading: These columns show the cumulative energy reading from your meter during the current and previous billing cycles. THIS DOES NOT SHOW HOW MUCH ENERGY YOU USED THIS PERIOD. You can subtract the previous reading from the current reading to get your measured usage. 
  • Measured Usage: This is how much actual electricity in kilowatts that you used during this billing period, measured by your electric meter.
  • Billed Usage: Your measured usage is put into an equation that determines the total units of energy consumed. That number is your billed usage, and is what Xcel bases your monthly charges on.  
  • Total Energy: Energy can be broken down into multiple components. This includes all of them. 
  • Reactive Energy: Reactive energy is one of those components that contributes to total energy. 
  • Demand: Demand is a measure of how much instantaneous power a customer uses at a given time. Xcel calculates demand based on the maximum amount of power that a customer uses in any 15 minute interval during the billing cycle. 
  • Billable Demand: If this number is higher than Demand in the row above, you’re getting penalized for your power factor. 
  • Power Factor Demand: Power factor attempts to show how efficiently you are using the energy supplied to you. If your power factor is 100%, you’re using 100% of the supplied energy. A lower power factor means that you aren’t using all of the power supplied to you.

Found on Xcel Bill Page 1

Account Balance

What You Need To Know:

Your total account balance is the first thing you see on your bill, and the last piece of the puzzle. Its helpful to look at your usage information and the specific charges on your bill to get the full picture of your energy expenses.

If you are looking to spend less on energy bills, our experts are happy to help you evaluate your businesses’ solar potential. 

Account Balance Glossary:

  • Balance Forward: If this is zero, you’re up to date on your payments. 
  • Amount Due: This is the total amount you owe for energy this month. You can compare this amount to your Previous Balance to see if you’re paying more or less than last month.

Want help understanding your commercial electricity bill? We can help.

If your company is considering sustainability initiatives, renewable energy, or energy efficiency improvements, we’re happy to hear from you. Impact Power Solutions has been helping organizations implement solar projects for over 30 years. If you’re interested in learning more about your commercial electricity bill or want to see how solar can work for your organization, reach out to us today! 

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What to Consider When Designing a Solar Ready Building

What to consider when designing a solar ready building

Why Design Solar-Ready Buildings?

Solar-ready buildings allow for future solar installations without the need for expensive adjustments and retrofits. Many existing buildings aren’t a good fit for rooftop solar due to orientation, roof size, shading or other factors. It can be incredibly expensive, or even impossible, to retrofit these buildings in a way that makes solar viable. Even new buildings may need substantial improvements to capitalize on their solar potential. 

This can be avoided by including solar production as a design criteria in the building plan, not adding it after the fact. A few simple changes to the design of a building can make adding solar more predictable and less expensive. 

Building orientation, roof layout, space for PV equipment and knowledge of local zoning and regulatory requirements are all important factors to address. NREL has published two detailed reports here and here detailing the specific technical considerations, which we’ll summarize below. 

Building Orientation & Shading

Anywhere north of the equator, PV systems perform best when facing due south. With this in mind, sloped roofs will work best with one south facing side. While flat roofs are more straightforward, they are still susceptible to shading from nearby buildings and trees. Even small amounts of shading can decrease solar production, so finding a clear area for the solar array is crucial. 

Roof Layout

A contiguous rectangle of solar panels is the most efficient layout, maximizing the system size and reducing load on the roof. A building must have enough flat, unobstructed roof space to accommodate this. With today’s current solar technology, we typically estimate that 10,000 square feet of unobstructed roof space can fit a 126kW solar array (which would produce around 148,600kWh here in Minnesota). For example, take a look at these office and multi-family residential projects. 

Plumbing & exhaust vents, chimneys and other rooftop equipment can interfere with the placement of a solar array. These obstructions should be minimized when possible, and clustered together on the north side of the roof to save space. A good rule of thumb is to place an obstruction twice as far away from the array as the obstruction is tall, to avoid any shading. 

A ballasted solar array can add between 3 to 10 pounds per square foot of load to a building’s roof. The ballast is needed to counteract potential wind uplift. This additional weight should be accounted for when determining the roof’s load capacity. This is another reason that it’s helpful to cluster your rooftop units and other obstructions together in a spot away from the solar array. Having to work around those elements will change the layout of the system, and increase the load on that particular area of the roof. 

The color and material of the roof can also impact solar performance. White TPO membrane roofs, which provide increased reflectivity, can boost solar energy production up to 15% when bifacial modules are used.  

Your roof is a long-term investment and maintaining the existing warranty is key. Before selecting a roof material and manufacturer, it’s good to look into what is required to install solar on top of that membrane and how the warranty will be maintained. Most, if not all roof manufacturers have a process in place to retain the roof warranty after a solar installation, but the requirements (and associated costs) can vary widely. 

Electrical Requirements

Designing the building’s main electrical panel to accommodate solar without utility upgrades will also make interconnection easier. A good rule of thumb is to allow for 100 amps of electrical gear for every 100kw of solar. So a 1MW rooftop solar array would require the ability to connect a 1,000 amp service to the electrical gear, via a disconnect or breaker integrated into the gear. 

Identifying where the inverters and other solar electrical equipment will be located (on the roof or near the main electrical panel) should be part of the building design process. Ensure that adequate space is left at whichever location is chosen, and there is easy access for future maintenance. We recommend leaving 15 linear feet available for new solar equipment.   

Zoning, Permitting & Policy

Zoning laws, permitting requirements and their potential impact should be understood during the building planning process. These rules can cover the potential height of new neighboring buildings, how close a solar array can be to the edge of the roof or if there are historic preservation protections in place. 

Depending on the location of the building, there may be system size limits or interconnection restrictions that impact the solar system design. For example, in Xcel Energy territory in Minnesota, solar systems can be net metered up to 120% of a building’s energy usage or 1MW, whichever is reached first. Most other utilities in Minnesota only allow net metering up to 40kW. Similarly, knowing which federal, state and utility incentives are available will help maximize the solar project’s positive financial impact. 

Let’s Talk About Solar-Ready Buildings

Overall, there is a lot to consider when designing a solar-ready building, but the long term benefits are more than worth the extra planning. Impact Power Solutions has been helping organizations implement solar projects for over 30 years. If you’re interested in learning more about designing a solar-ready building, or want to see how solar can work for your organization, reach out to us today! 

How Solar Can Help Your Company Achieve Corporate Sustainability Goals

Many companies are turning to solar to achieve their corporate sustainability goals in response to shifting external factors, investor attitudes, and stakeholder preferences. With interest in corporate solar surging, we wanted to highlight recent examples of those external factors, show how solar can help, and illustrate how solar has helped our clients and collaborators achieve their goals. 

What Is Corporate Sustainability?

As the Ivey Business Journal puts it, “Corporate sustainability recognizes that corporate growth and profitability are important, it also requires the corporation to pursue societal goals, specifically those relating to sustainable development — environmental protection, social justice and equity, and economic development.”

Unfortunately, many companies struggle to gauge the effectiveness of their programs. A recent survey of both public and private companies revealed that while 81% of respondents’ companies have formal programs in place, only 50% of those respondents believe their company performs effectively. Fortunately, solar can help companies produce substantial, measurable results for their corporate sustainability goals. 

Environmental Protection 

A recent United Nations report, approved by 195 governments and based on 14,000 studies, confirms that humans are responsible for climate change. While the results are unsettling, there is still hope to achieve the best outcome with a coordinated effort and swift policy change. Since solar energy systems do not produce air pollution or greenhouse gases, they can drastically reduce your organization’s carbon footprint and are also an impactful way to advance your building’s green credentials. While your company may not influence policy, it can still take part in the coordinated effort to reduce greenhouse gas emissions.  

Take The Vomela Companies’ on-site solar array as a recent example. The company is projected to offset nearly 36,000 tons of CO2 over the next 30 years, which will make a significant and positive environmental impact. That’s the equivalent to adding 44,000 acres of trees to our forests. Additionally, the company achieved the sustainable green printing certification by pairing solar with other environmentally conscious practices.

 

The Vomela Companies Rooftop Solar Array  An Aerial View of The Vomela Companies’ rooftop solar array in Saint Paul, Minnesota.

Social Justice and Equity 

The senate recently passed the $1 trillion infrastructure plan, allocating $36 billion in investment to fight climate change. In the proposal it states that, “the plan prioritizes addressing long-standing and persistent racial injustice. The plan targets 40 percent of the benefits of climate and clean infrastructure investments to disadvantaged communities.” 

According to the IEA, solar energy has surpassed all other forms of energy as the most affordable electricity source in the world. Despite this, disadvantaged communities have less access to solar energy and its benefits compared to their counterparts. As outlined by the Scientific American, ”Racial and ethnic minorities have less access to solar power, regardless of income, highlighting the need for environmental justice.” Providing these communities with access to cheap, clean energy is an actionable way for organizations to take part in both social and environmental change.  

Look at Shiloh Temple’s rooftop community solar project as a recent example. Faith groups, businesses, and organizations across North Minneapolis banded together to create positive change. While other solar gardens are being developed to allow large corporations or municipal governments to subscribe, this garden demonstrates a new model by placing clean energy in a low-income community of color, creating green jobs for local residents, and ensuring access to community solar. 

 

Community members participating in Shiloh Temple's ribbon cutting eventCommunity members participating in Shiloh Temple’s ribbon cutting event.

Economic Development

In a recent statement by SEC chairman Gary Gensler, it was announced that plans are in development for mandatory climate reporting by the end of the year, signaling publicly traded organizations to be prepared for addressing environmental, social, and governance issues. Larry Fink’s 2021 annual BlackRock CEO letter said it best. “There is no company whose business model won’t be profoundly affected by the transition to a net zero economy.” 

Jobs in the solar industry are growing 17 times faster than the US economy and 90% of newly installed electric capacity was from renewable sources in 2020. Solar installer has been consistently ranked as one of the fastest growing jobs in the US in the past 5 years, according to the SEIA. Companies that meet their energy needs with rooftop solar are supporting economic development through manufacturing, installation, and more. Opportunities for companies to support economic development with solar are not limited to rooftop installations, either. Sourcing energy from community solar gardens provides economic support to rural communities, while giving farmers and landowners a valuable opportunity to diversify income streams. 

In a recent collaboration with Summit Academy, Target Corporation, and the City of Minneapolis, IPS led a workshop with recent Summit Academy grads and solar career hopefuls to help prepare them for NABCEP certification, the most well established certification in the renewable energy field. The IPS team shared their solar industry knowledge, the students received real world experience, and Target Corporation reinforced their commitment to renewable energy by supporting future renewable energy leaders.

 

Recent Summit Academy Grads, IPS team members, and Target representatives

Recent Summit Academy grads, Target representatives, and IPS team members.

Consider Solar for Accomplishing Your Company’s Corporate Sustainability Goals.  

If your company is looking for practical ways to achieve its corporate sustainability goals, we encourage you to evaluate solar. In addition to drastically reducing energy costs and carbon emissions, solar can compliment multiple company initiatives. Interested in learning more about what solar would look like for your company? Request a quote to see if solar is right for you! We’ve been happy to learn about your energy needs, educate inquirers, and demonstrate Solar’s payback for over 30 years.

The Infrastructure Plan: What it Means for Solar and Businesses

What Is the Infrastructure Plan?

The infrastructure plan, or the American Jobs Plan is a $2 trillion proposal from the Biden administration that aims to address the climate crisis while out-competing China. If enacted, the plan would be the largest government investment on record, surpassing President Eisenhower’s interstate highway system. 

The Infrastructure Plan Focuses on:

  • Overhauling roads and bridges.
  • Electric vehicle charging stations and incentivized electric vehicle purchases.
  • Retrofitting homes for affordable energy efficiency.
  • Improvements to the US electric grid.
  • Research and development to position the US as a leader in clean energy.
  • Achieving 100% carbon free energy by 2035.
  • Equity and workforce development.

What it Means for Solar 

In short, expect to see solar doing more of what it’s great at. The plan aims to ‘spur jobs that modernize power generation and deliver clean electricity,’ calling for rapid deployment of solar, wind, and storage. The plan’s focus on energy efficiency is likely to benefit the solar industry, as the two work well together. Speaking of working well together, solar is complementary to EV charging stations, and likely to play a role in the plan’s focus on electrifying transportation. Solar can strengthen the electric grid, and solar industry leaders are already focusing on equity and workforce development. While achieving 100% carbon free energy by 2035 is no easy task, solar is well positioned to be a major contributor as the world’s most affordable energy source, and create jobs even faster.

What it Means For Businesses

The plan focuses on ‘Creating a national network of small business Incubators and innovation hubs,’ providing business owners access to credit, capital and R & D dollars. It includes funding to support entrepreneurial growth in communities of color, and will partner with rural and tribal communities to create jobs and support economic growth. While the plan includes a corporate tax rate increase from 21% to 28%, that is lowered from its prior rate of 35% in 2017. Fortunately for business owners and the solar industry, a 10 year extension of the solar tax credit would be enacted, allowing plenty of time to save 26% on a newly installed solar array.

IPS is happy to share our expertise on available solar incentives. We’ve helped businesses save as much as possible with solar for over 30 years. Interested in learning more? Reach out for a free solar analysis today.

Net Metering: What is it & why does it Matter?

What is Net Metering?

Net metering allows solar system owners to send extra energy they produce into the power grid. So if the system produces more than what they use, the energy sent into the grid is credited. Basically meaning their electric meter runs in reverse. 

 

But Don’t be Fooled.

The promise of earning additional income from the practice is nearly a myth. While it provides FANTASTIC credits & savings to your bill, your system usually won’t produce more than you use.

 

Why is it Important?

  • Firstly, it allows you to save more on utility bills with clean energy.
  • Secondly, it increases the amount of energy that the utility grid receives from renewable sources. 
  • Thirdly, it protects the power grid, allowing utilities to better manage peak loads.
  • Lastly, it increases clean energy demand, creating jobs. 

 

A Brief History of Net Metering

Beginning in the late ’70s, Steven Strong installed 2 solar systems, but he forgot to tell the utility company that his system fed excess power into the power grid.

Fortunately, it all worked, and as a result, several officials from the state and utility company were invited to the grand opening of the projects. As a result of hearing the state officials applaud Strong’s innovation, the utility company ultimately shared their praise. 

After a very positive PR response, clean energy companies across the US adopted the practice. Later on, Strong won several awards from federal agencies and was dubbed “Hero of the Planet” by Time Magazine. 

 

US States/territories with Net Metering Laws

In our home state of Minnesota, clients are only billed for their net usage. When excess energy is generated during the day, the utility company has to pay the market rate when crediting their bill.

Source: (Solar Power World, dsireusa.org)

 

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  • Alaska
  • American Samoa
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Guam
  • Iowa
  • Kansas
  • Maine
  • Maryland

 

  • Massachusetts
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma

 
  • Oregon
  • Pennsylvania
  • Puerto Rico
  • Rhode Island
  • South Carolina
  • U.S. Virgin Islands
  • Vermont
  • Virginia
  • Washington
  • Washington, D.C.
  • West Virginia
  • Wisconsin
  • Wyoming

Impact Power Solutions is happy to provide solar development services in Minnesota and across the Midwest. If you’re ready to start saving with solar, feel free to contact us or get a quote.  Being the #1 solar developer in the Midwest, our process has constantly improved for over 25 years to meet your needs. 

2020 Solar Trends: Opportunity Zones

Opportunity zones are certified low-income areas into which investors can deploy capital for value-adding projects, in exchange for federal capital gains tax and other advantages. 


In general, capital gains are incurred when selling an appreciated asset such as real estate or stocks.  The appreciated gain is taxed at a special rate, which is typically 15% to 20%.


By investing in opportunity zones an investor’s capital gains rate can be reduced by 50% to 75% depending on how long the investment is held.  


Opportunity zone funds can be used for solar, microgrids, electric vehicle charging stations, and energy storage.


Another benefit, Investors will not be taxed on any capital gains incurred from a project if they hold that property or asset for a decade or more.


There are 8,760 opportunity zones in all 50 states.

 

2020 Solar Trends: Xcel Solar Rewards Program

Xcel’s Solar*Rewards® program provides a financial incentive for residents, businesses and public entities to install solar power. Monthly payments are made to the owner of the solar system in exchange for Renewable Energy Credits (RECs) produced by solar.  This is known as a performance-based incentive or PBI.


Xcel customers also qualify for Net Metering up to 1 megawatt AC (or enough power for roughly 200 homes).  If you generate more than you need, the extra energy is added to the grid, and any excess energy will be credited to your bill. 

Additionally, there’s a specific sub-program for under-resourced communities and income-qualified multi-family.


It is important to note that small commercial incentives levels are decreasing.


Also, large projects qualify for a separate bill-credit mechanism called capacity credit program or ELPC which was strengthened in 2019.

 

2020 Solar Trends: Minneapolis Green Cost Share Program

The City of Minneapolis is offering an incentive to install solar: the Green Cost Share Program. Qualifying projects will be compensated based on the solar array’s projected first year kilowatt hour production, up to $50,000.  Funding ranges from $.20 to $.40.


Priority will be given to buildings in designated Green Zones and to buildings that are participating in the 4D Affordable Housing Program.


Worth noting, projects receiving funding will require prevailing wage.