In last week’s blog post, we wrote about the recent developments in the SREC-II incentive program in Massachusetts. Essentially, the successful SREC-II program – an incentive that issues Solar Renewable Energy Credits (SRECs) to solar array owners proportionate to the amount of solar energy generated by their system – has been fully subscribed for systems greater than 25 kilowatts (kW), meaning no new solar projects over 25 kW being built in the state will qualify to receive these credits. Because the sale of SRECs play a substantial role in a solar customer’s return on investment, the abrupt end of this incentive program produces great uncertainty in the market, and has encouraged would-be solar owners to put a hold on their solar aspirations. Effectively, SREC-II has run its course in the Commonwealth, and the DOER has yet to define a path forward.
Luckily, in January of this year, the DOER carved-out 120 megawatts (MW) of SREC-II credits specifically for solar projects less than or equal to 25 kW in size. This is great news for the hundreds of small businesses and residents that call the Commonwealth their home. The sub-25 kW market, which has typically been reserved for residential solar projects, may also serve small commercial arrays – a market that has been historically underserved. Until now.
Currently, there remains close to 90 MW of space available under the SREC-II program for projects less than 25kW. However, that capacity is expected to fill up quickly as the DOER receives nearly 1 MW of applications per day for projects smaller than 25 kW.
Small businesses can benefit in big ways from going solar. In a small business, efficiency matters. Installing solar enables businesses to save money and energy, which makes a substantial difference in the way a small business is run. The operational savings realized from reduced or even zero-cost energy bills can bolster big parts of a small business budget, allowing growth and higher margins. The environmental leadership displayed through the installation of a solar array can help improve customer perceptions, and can spur like action in the communities small businesses thrive in. Small business is a quintessential part of the American dream; it is all about taking an idea and making it happen. Solar can help small business owners achieve their dreams more easily, by boosting profit margins and helping make an important impact on their communities.
The sub-25kW SREC carve-out is a good opportunity to bring solar energy to those small businesses. Solect is doing this through our new Solar for Small Business program.
Solect’s Solar for Small Business program allows smaller companies to get ahead in their markets by investing in high-return solar PV systems. We offer solutions that require little to no up-front costs, and have several “pre-packaged” financing products designed to best benefit small to medium sized commercial businesses. From a capital purchase, to one of our many leasing options, there’s a solar solution that will work for your business.
Small businesses in Massachusetts are in a great situation to benefit from solar energy, and with one of our turnkey small business solar solutions, simplified incentive application and pre-packaged financing solutions, Solect can help you go solar in a matter of days.
However, the SREC-II incentives are awarded on a “first come, first serve” basis and due to limited capacity, will likely fill up within a couple of months. If you’re a small business or commercial property owner looking to invest in solar to help reduce your energy costs – now is the time to act.
It’s time for small business in Massachusetts to shine.