Modified Accelerated Cost Recovery System (MACRS)
On the federal side, your project may qualify for MACRS accelerated depreciation.
Renewable Energy Credit (REC) Overview:
- A REC is a tradable commodity certifying the production of 1,000 kilowatt-hours (1 megawatt-hour) of energy from a registered renewable energy system.
- States like New Hampshire require electricity suppliers to obtain a portion of their energy from renewable sources.
- Utilities purchase RECs to meet these renewable energy requirements.
· Net Metering and RECs:
- If net metering is available to you, you can still leverage it even if you choose to sell your RECs.
- RECs are based on the total solar production of your system, independent of your facility’s energy usage.
- Net metering benefits are separate from REC benefits and do not affect each other.
· Creation of RECs:
- Systems need state certification and a New England Power Pool Generation Information System (NEPOOL GIS) account.
- NEPOOL GIS is a third party that issues and tracks RECs in New England.
· Payment for RECs:
- Payments are made a couple of weeks after each quarterly minting.
- Example: If your system starts in January, your first payment will arrive in early August.
Municipal Solar Grant Program2
The New Hampshire Department of Energy (NHDOE) has been awarded a $1.6 million formula grant to develop the Municipal Solar Grant Program. This competitive program supports municipal solar projects with an installed capacity of up to 60 kW DC. Notably, for a 60 kW project in low-income communities, the grant can cover the entire capital cost, while for other communities, it can significantly reduce the total project cost to under $100,000.
This pilot program will not only assist NH communities in implementing solar energy projects but also provide valuable insights to the NHDOE, guiding the development and funding for future solar initiatives for municipalities and public schools across the state.
Mathematically speaking:
- A 200 kW solar project on a public school or municipal rooftop costs around $550,000. If the town purchases and owns the project, it will benefit from a 30% federal Investment Tax Credit (ITC), amounting to $165,000. Not just that, the system’s cost can potentially be recovered within 10 years.
- Additionally, under a Power Purchase Agreement (PPA), Solect can develop and maintain a solar project on a municipal property and sell electricity back to the host at a fixed rate. This arrangement can secure a substantially low electricity rate, potentially as low as 10 cents per kWh, for a specified period—typically 25 years.
2. Information courtesy: NH Department of Energy
Why Solect: our differentiators at a glance
Excellence in quality, safety, value, and performance forms Solect’s cornerstones.
Our consistent process delivers outstanding results for our clients.
Assess project site(s) and current and future electric profile
Present analyses and recommendations on financial benefits
Contract, engineer, and
develop
Construct, interconnect, and commission projects
Optimize your solar ROI
with cutting-edge O&M services
Asset and performance management,
and compliance