Why Go Solar?
Business relies on predictability. In a world with an uncertain energy future, energy prices will fluctuate wildly. Oil prices alone have gone from $50 to $85/barrel in the past 5 years, that’s an average increase of 14% per year. But of course, it’s anything but a steady predictable increase. Oil has gone up and down over a dozen times.
In Pennsylvania, electric rates typically change every 3 months, so these prices are not as crazy as oil prices, but you are still paying the highest price ever for electricity right now in 2022. Electric rates will most certainly continue to creep upward cutting into your bottom line. Go solar now to insulate your business from these uncertain future rates and in addition to securing your bottom line, your business will become more self-sufficient using Pennsylvnia-generated energy.
See the examples below to see how your business can take advantage of Solar Energy just like over 100,000 other businesses do each year. And remember, if you generate all of your energy, you will be immune to future energy rate increases ($/kWh charges)!
2-Year Simple Payback
50% Return on Investment
Example 1: A small business or farm operation, served by a rural electric co-op, and with a strip of available land for a ground-mount solar array. Groundhog Solar can install a 120-module (57.6kW array) on a 230’ x 25’ strip of land.
$80,000 total costs
- $20,000 USDA grant
- $20,800 Federal tax credit (26%)
- $24,400 Value of Fed. depreciation deduction
$14,800 Net cost after grants and tax savings.
This system would then generate $6300 in electric bill savings each year (63,000 kWh) and $2400 in annual SREC sales resulting in a two-year simple payback! Qualifying and getting the USDA grant is what makes this deal incredibly good. The grant has lots of paperwork and rules, and Groundhog Solar will manage your grant application for you and advise if you are a good fit. Many businesses are not a good fit, but it’s free to call Groundhog Solar and have a consultation.
4-Year Simple Payback
25% Return on Investment
Example 2: This the same as the example above, but without the USDA grant. There’s a lot less paperwork involved in this scenerio.
$80,000 total costs
- $20,800 Federal tax credit (27%)
- $24,400 Value of Fed. depreciation deduction
$34,800 Net cost after grants and tax savings.
This system would then generate $6300 in electric bill savings each year (63,000 kWh) and $2400 in SREC sales resulting in a four year simple payback!
6-Year Simple Payback
16.6% Return on Investment
Example 3: A small business has a 40×60 pitched roof. The business opts to sell Groundhog Solar their SRECs to reduce their up-front costs, and the business is on the First Energy General Secondary Medium rate plan charging about 8.5 cents per kWh. Groundhog Solar installs a 22kW roof-top system on the south side of the roof.
$45,000 total costs
- $11,800 Federal tax credit (26%)
- $11,700 Value of Fed. depreciation deduction
- $ 5,000 Sale of SRECs for 25 years.
$16,500 Net cost after grants and tax savings.
This system would then generate $2300 in electric bill savings the first year (26,000 kWh) and more each year after because of rate increases resulting in a six year payback or a 16.6% Return on Investment just due to the solar.
5-Year Simple Payback
19.9% Return on Investment
Example 4: A farm operation with a 40’ wide livestock barn roof in full sun.
Groundhog Solar installs a 58 kW solar array on the roof of the barn using microinverters. The Solar array also reduces the amount of direct sunlight on the barn roof making it cooler in the summer, reducing fan usage, and increasing livestock production. The farm opts to sell Groundhog Solar their SRECs to reduce their up-front costs. This farm is on a First Energy General Secondary Medium rate plan charging about 8.5 cents per kWh.
$104,000 total costs
- $27,000 Federal tax credit (26%)
- $31,500 Value of Fed. depreciation deduction
- $13,000 Sale of SRECs for 25 years.
$32,500 Net cost after grants and tax savings.
This system would then generate $6100 in electric bill savings the first year (70,000 kWh) and more each year after because of rate increases resulting in a five year payback or a 19.9% Return on Investment just due to the solar. But because the barn needs less ventilation and/or the temperature is reduced and production is up, the farm has a much better overall return on investment.
2.4-Year Simple Payback
42% Return on Investment
Example 5: A small business with 3000 square feet of usable land.
22 kW solar array ground-mounted near business.
$60,000 total costs
- $18,000 Federal tax credit (30%)
- $20,300 Value of Fed. depreciation deduction (over 5 years)
$6,700 Net cost after grants and tax savings.
This system would then generate $2400 in electric bill savings each year (24,000 kWh) and $150 in SREC sales resulting in a two year simple payback!
6-Year Simple Payback
16% Return on Investment
Example 6: A rental or leased property in which the owner installs solar and the tenant pays a higher rent or lease to account for the electricity they use. A 14 kW solar array is mounted to the roof of the building and provides 15,000 kWh each year. A rental contract would then establish that tenant pays extra $150 per month for electricity included, and also pays some amount for any annual use over 15,000 kWh.
$35,000 total costs
$10,500 Federal tax credit (30%)
- $12,000 Value of Fed. depreciation deduction (over 5 years)
$12,500 Net cost after grants and tax savings.
This system would then generate $2100 in electric bill savings each year (15,000 kWh) and $100 in SREC sales resulting in a six year simple payback!
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