Cash flow has never been more important for organizations, and many are looking for non-standard ways to improve financial performance while still being good social and environmental stewards.
Renewable energy technologies like commercial solar can provide organizations with additional sources of capital during turbulent times. Unlike many other investments, solar pays back regardless of what interest rates are or how the stock market performs. By harnessing clean electricity from the sun, organizations can generate energy on-site and sell that power back to their utility via the solar feed-in tariff.
Many states offer a solar feed-in tariff as a performance-based incentive (PBI) that financially compensates you for the amount of clean power that your solar photovoltaic (PV) system generates and sends to the grid. Solar feed-in tariffs are designed to provide a fix-price incentive ($/kWh) based on the amount of energy generated by your solar PV system, and they guarantee a payment to you as long as the sun continues to rise each day. Contracts are typically for 20 years and as a result, solar feed-in tariffs provide a long-term, dependable source of income.
Here’s how the solar feed-in tariff works:
During these uncertain times, you can preserve your capital and simply lease your rooftop to a solar company who will own, operate, and maintain a solar PV system on your roof. In this financing arrangement, there is no capital investment, no ongoing operating expenses, and it provides new source of revenue for your business.
Qualifying for this solar incentive isn’t automatic:
If you meet the above criteria, we encourage you to take advantage of this solar incentive. Even though feed-in tariff contracts can last for 20 years, the program won't be around forever. Like all solar incentives, early adopters get grandfathered in and latecomers get locked out once the program expires.
If you don’t qualify for a feed-in tariff, various other incentives are available. Net metering is available in most states and is another great way for organizations to sell excess solar energy to the grid and generate revenue.
The solar feed-in tariff is a production-based incentive that compensates you based on the amount of clean electricity that your solar PV system generates, and therefore selecting a solar installer that designs and installs high-quality systems is critical to securing the maximum benefit from this incentive.
At Centrica Business Solutions, we support you on every step of your journey, from understanding your energy goals to optimizing your solar PV system. Every system is customized to your specific business needs in order to maximize energy production and deliver energy savings. Our highest quality technology offerings, experienced project management, and professional engineering and design – combined with our industry leading production guarantees and workmanship warrantees – ensure a worry-free investment.
Our team can walk you through available options and help you navigate these opportunities for your business.
Tim Seamans
Tim Seamans serves as Head of Commercial Solar at Centrica Business Solutions. Tim is a 14 year veteran of the solar industry and has worked with a diverse group of teams to provide clients with an excellent financial return from solar and help build an distributed energy platform for future generations.
