Solar on a Commercial Building in NJ?

Question

Hi Everyone.... my husband and I are strongly considering putting solar on our 10,000 SF office building in Trenton, NJ.  We are considering two companies - DC Solar Integrators LLC and Ad Energy.  After reviewing the proposal from DC Solar, it seems like it is a no brainer. There is obviously electricity savings and a ton of other benefits if we were to purchase the system vs leasing it.  Even though it looks like a great opportunity full of savings, this is new territory for us.

I would love to hear any BP member's experience with putting solar on a commercial especially in NJ.  Did you see immediate savings? Have you received SREC income? Have you experienced any downsides? Does anyone have experience with these two companies?

Thank you so much for any support you can offer!! This is a huge investment so we want to ensure we are making the right decision!

Liz Faircloth · Answer

@Lloyd Spencer We never ended up doing anything a few years ago, but actually have picked up the conversation again and are evaluating a few options right now. I have a good contact that can help you if you need it. Please feel free to message me! Happy to help!!

Lloyd Spencer · Answer

Hi, I'm thinking of doing the same on a multifamily in NJ where I am responsible for a common area meter with a surprising amount of usage.  Can you offer any update on what happened?  Did you do it?  Were the projections accurate?  Thanks!

Eli Winkelman · Answer

Solar seems like it would make a lot of sense for you. If you want better pricing you might want to try energy sage to get multiple quotes from local companies, sometimes it can decrease the cost by 20%.

Evgeny Logvinov · Answer

I am not from New Jersey. But I have some knowledge about installing solar in Massachusetts. I do agree that purchasing the system is the way to go. In MA it will take about 4 years to get your money back:

- Federal Tax credit 30% (year 1)

- SREC - in MA cash flow is equal to 100% of the cost of the system spread out over first 6 years

- Accelerated depreciation (deduct 50% first year, and 9% for 4 years their after)

- Electricity price - depends on your local rates

- Also very low maintenance.

When deciding between the companies I would try to get referrals, also I went with a national player Sungevity - they offered better pricing and guarantees of production ( big guys are more likely to stick around)

Hope it helps

Liz Faircloth · Answer

@Gregory Hiban  Thanks so much for getting back to me! Great question!! I think our building was re-assessed recently. However, you raise an excellent point, and I am going to discuss further with our team! Thanks for your help and support!

Gregory H. · Answer

@Elizabeth Faircloth A slightly different question, but always on my mind when I think of Trenton, as I am just across the river. If you install the solar panels on your building, could Trenton reassess the property and increase your assessment? Maybe a question to ask the solar company. I'd just like to make sure that is not a possibility before I were to move ahead since that could wipe out all the savings given how high your tax rates are over there. The way I understand it, many states, including NJ, exempt the value of the solar system from inclusion into assessment calculations, but if your building is under-assessed and the work triggers a re-assessment, that might be just as bad.