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Capacity for Commercial Solar

Limited Grid Capacity for Commercial Solar

February 23, 2024 By In News No Comments

Gridlock Warning: Limited Gird Capacity for Commercial Solar Projects

These days, the advantages of commercial solar are undeniable. While many commercial enterprises have contemplated the switch to solar, some are hesitating. This hesitation is understandable given the evolution of solar technology, but what these businesses may not realize is that delaying their transition to solar could be a critical misstep—one that might prevent them from going solar altogether.

 

Reaching the Limits of Utility Capacity

While this issue is well-known in the commercial solar industry, many business owners are discovering it the hard way. Massachusetts, once a national solar adoption leader, now faces severe capacity gridlock. The state’s initial success, driven by an innovative incentive program, has led to a maxed-out electric grid, impeding the progress of commercial solar projects. Michael Porcaro, the director of innovative grid solutions at National Grid, told the Boston Globe “Massachusetts is somewhat of a victim of its own success.” Delays in commercial solar projects are substantial, with over 400 megawatts across hundreds of projects held up as the state and utilities determine the need for additional electric infrastructure and funding for upgrades.

These challenges go beyond simple replacements; substation-level investments, as explained by Porcaro, require extensive time for development and accurate scoping. Statistics reveal the impact of these delays, with Massachusetts dropping to 27th in the nation for solar installations from its 11th position just two years ago. Statewide solar installations in 2023 plummeted to 292 megawatts, less than half of the state’s all-time high of 622 megawatts in 2021.

This situation not only hinders the state’s sustainability goals but also poses a threat to businesses aiming to reduce energy costs and their carbon footprint.

 

What Can Business Owners Do

As local governments and utilities work to resolve infrastructure and capacity limitations, proactive steps are essential for business owners. Commercial solar is no longer an experimental technology; it is a proven and highly effective asset beneficial to almost all commercial businesses. Those who have not adopted solar should reassess their financial plans and make the decision to move forward now.

The duration of utility upgrades remains uncertain. If capacity depletes, business owners may find themselves locked into rising electric rates for the foreseeable future.

Addressing Hesitations

While the benefits of commercial solar are evident, it’s understandable that some business owners may harbor reservations, contributing to the hesitation in embracing this sustainable energy solution. Some business owners may express reservations, waiting for solar technology to mature and improve before making a significant investment, but the technology has undergone remarkable advancements in recent years. Today’s solar technology is more efficient, reliable, and cost-effective than ever.

Another popular reason some business owners continue the waiting game is they hope or believe energy costs will go down. While it’s true that energy costs can fluctuate, relying solely on the expectation of future reductions may overlook the immediate financial benefits of solar adoption. Government and financial incentives were created for this exact reason.  Tax credits, rebates, and other financial incentives are made specifically are available to ease the financial burden so businesses are encourage to act now rather than later.

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Bake Crafters Commercial Solar Case Study

Act Now

Capacity gridlock serves as a final warning for commercial businesses to embrace solar solutions. Proactive measures are necessary to ensure the sustained vitality of businesses. Commercial solar is not just a technological advancement; it is a strategic investment for businesses navigating the challenges of a dynamic energy landscape.

If you’re ready to quit the waiting game and move forward with solar for your business, reach out to Genie Solar today for a free estimate.

 

Source: Boston Globe

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Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

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Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
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A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
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A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
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Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
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A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
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