Solar PV Rooftop Systems Can Help Defray Warehouse Electrical Costs - Facilities Management Energy Efficiency Feature
Solar PV rooftop systems are used to generate electricity at warehouses. Warehouses typically make ideal solar installation candidates since they often have large, unobstructed flat roofs that can accommodate large solar PV systems. Solar PV installations are entitled to a 30 percent tax credit. When using either the credit or the grant, the five year Modified Accelerated Cost Recovery System (MACRS) deprecation method is available; for 2012, there is 50 percent bonus tax depreciation. A building owner may be willing to make the investment for a rooftop warehouse solar installation if the warehouse tenant will agree to enter into a power purchase agreement to purchase its electricity from the building at a set price for a fixed period of time, usually 15 to 20 years. The building owner will use a combination of sources — the power purchase agreement annual revenue; the tax credit or grant; utility rebates, if available; green tag emission payments; and net metering electricity payments for selling the excess power back to the grid — to generate an acceptable economic return. With a power purchase agreement, a warehouse owner is essentially renting the roof as an alternate energy electrical generator.
Solar PV rooftop systems are used to generate electricity at warehouses. Warehouses typically make ideal solar installation candidates since they often have large, unobstructed flat roofs that can accommodate large solar PV systems. Solar PV installations are entitled to a 30 percent tax credit. When using either the credit or the grant, the five year Modified Accelerated Cost Recovery System (MACRS) deprecation method is available; for 2012, there is 50 percent bonus tax depreciation. A building owner may be willing to make the investment for a rooftop warehouse solar installation if the warehouse tenant will agree to enter into a power purchase agreement to purchase its electricity from the building at a set price for a fixed period of time, usually 15 to 20 years. The building owner will use a combination of sources — the power purchase agreement annual revenue; the tax credit or grant; utility rebates, if available; green tag emission payments; and net metering electricity payments for selling the excess power back to the grid — to generate an acceptable economic return. With a power purchase agreement, a warehouse owner is essentially renting the roof as an alternate energy electrical generator.