Want To Know Your Yearly Electrical Usage and How Solar Can Cover That Usage?

MSSI Logo  Finding Your Annual Electric Usage

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5.2 kW system MSSI installed in Colora, MD.

One of the most common questions we field at MSSI is, what can solar do for me in combination with how fast can I pay back the system I’ve had installed? These two questions are intimately involved and have everything to do with your electric usage. We pay for electricity by the kilowatt hour. Knowing our monthly kWh usage gives us a picture of what our usage is annually. Once we know that number, we can more accurately know what size system you need to meet your goals and/or current electrical demand. For instance, if I’m using 12,000 kWh per year and I want to cover my usage 100% with solar, my solar array would need to produce 12,000 kWh or more. On average Americans use 10,932 kWh per year. The higher your usage, the larger system you will need to have installed. The eventual size of your system depends upon your usage, goals and budget.

Finding Your Annual Usage On Your Bill

So, how do you find your annual usage without having to create an elaborate Excel sheet that you plod you way through for a year? While obscure, your bill will tell you. Below are examples of utility bills from across the state and how to discern that information from your bills.

Baltimore Gas and Electric

BGE Bill Example

Above the portion that you would tear off to send in with your payment, you will find the Adjusted Annual Usage. This is your current year-to-date electrical usage. The total kWh in this example is 16,485. In order to cover this usage the solar array installed would need to generate 16,485 kWh or more per year. 

Delmarva Power

Delmarva Bill

Extrapolating annual usage from the Delmarva Power bill is a little trickier than with simply finding a single number on the BGE bill because Delmarva provides your yearly kWh usage in a handy bar graph. The horizontal line along the bottom of the bar graph notates the years. In the above example the years in question are 2009 and 2010. The perpendicular line along the left hand side is indicative of the amount of electricity used.

In this instance, it looks like this family used:

May ’10:  700

June ’10:  1250

July ’10:  1260

August ’10:  650

September ’10:  630

October ’10:  700

November ’10:  650

December ’10:  1260

January ’10:  800

February ’10:  1500

March ’10:  1200

April ’10:  820

Total:  11,420 kWh

Potomac Electric Power Company/PEPCO

Example PEPCO Usage Chart

Like Delmarva Power, PEPCO uses a bar graph to convey annual electric usage. In this instance we’re looking at about 12,400 kWh per year. 

Potomac Edison

Potomac Edison Bill

Potomac Edison bills include both a bar graph and a line item that denotes the “Last 12 Months Use (KWH).”

Southern Maryland Electric Cooperative/SMECO

SMECO Usage Chart Example (1)

SMECO gives you a bar graph that takes all the guess work out because your monthly usage is numerated above each bar. In this instance, the yearly usage adds up to 29,751. 

 

 

Installation Pictures From The Sky: MSSI Installation in Glen Burnie, Maryland

MSSI Logo  Going Solar in Glen Burnie Is EASY!

 

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This diminutive, yet powerful 6.38 kW system was installed in December 2015. This Customer was looking to cover 100% of his annual kilowatt hour usage. With this 6.38 system, he has been able to do just that!

As of October 2016, this system has saved 11,640 lbs of carbon dioxide from entering the atmosphere and is equivalent to having planted 293 trees! Woot, woot!

Can You Afford NOT To Purchase Your PV Solar Array?

MSSI LogoCan You Afford NOT To Purchase Your PV Solar Array?

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In this piece, we’re going to explore the differences between leasing and purchasing solar and then dig into the returns on investment that can be realistically expected from obtaining a solar array of your very own for your home or business.

According to Consumer Reports, the vast majority of Americans who go solar (72%) are leasing their panels or are participating in a Power Purchase Agreement (PPA). With virtually no upfront costs, it is no surprise that the vast majority of Americans are choosing to go solar with a Lease/PPA. It’s predictable that the high introductory costs associated with PV solar causes a lot of people to move away from purchasing and towards the alternatives presented by leasing and PPA’s. In doing so, they lose out on the real financial benefits that accompany the purchase of their own PV solar array.

We recently heard someone say that, “purchasing a PV solar array costs as much as a car note!” It sure does, but what solar gives back is what makes this a poor comparison. When looking past the initial similarity in price tag, purchasing solar makes a great long-term investment; a car does not. You may pay the same amount for a car, but the difference is that once you’re done paying down the solar array you will be looking at a predictable and reliable source of additional income for the remaining life of the system (10-15 years). That’s 10 – 15 years of free energy!

Of course we’re being a bit prejudiced, but we really do think that investing in solar is a wise choice and something worth pursuing. 

 

Break It Down Now: What’s the Difference Between a Lease and a Power Purchase Agreement?

While leasing entails that you pay a set price every month for the panels on your roof, with a Power Purchase Agreement you purchase the energy generated by the array per kWh. For example, if you are leasing a 10kW solar array from a leasing company for an agreed upon price of $200/month, you will be paying the leasing company $200/month regardless of how much energy the array produces. If you had a Power Purchase Agreement for the same size system, instead of monthly installments, you would be paying an agreed upon price per watt and your cost would be based on the amount of energy that the system produces. At the end of the day, both add up to the same thing: you do not own the panels and do not have access to the considerable financial advantages associated with going solar. In our newsletter and blog, we’ve recently highlighted the incentives available to Marylanders who choose to go solar, so let’s take a brief moment to look at Solar Leasing and PPA’s and the drawbacks associated with them.

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The Financial Disadvantages of Leasing and PPA’s

In a Leasing/PPA situation, the solar company essentially has ownership of the roof they install on. In common parlance it is suggested that you are leasing the panels from them, but in fact, it’s the other way around; the Leasing/PPA company is leveraging your roof as a means to turn a profit, while enticing the lessee with modest savings and no upfront costs. Why do I say this? Several reasons:

Loss of Incentives

There are several “payback” financial incentives given out by the Federal government, State government and sometimes even Local governments (refer to blog to see the incentives available to Marylanders) that are forfeited when a system is leased. This also includes the value-added benefits of solar: Solar Renewable Energy Credits (SRECs) and Net Metering.

Let’s say that you have a system that is generating 12,000 kWh a year. In this instance, you would be entitled to 12 SRECs whether you use the energy or not. Depending on market rates that’s an additional $216-$2,220 a year. Using that same scenario, if you’re generating 12,000 kWh a year, but only using 9,000 kWh a year, not only would you be paying nothing for electricity, but according to the Net Metering laws set in place, your utility would have to pay you for the additional energy you provided for the grid. Utilities in Maryland pay 7-9 cents a kWh and will pay PV solar array owners for the energy provided if it has a net worth of over $25. Additionally, the installation of a purchased PV solar system here in Maryland is a home improvement that cannot be added to your Property Tax assessment as an improvement to be taxed. Pretty awesome!

Lastly, the purchase of a system has the potential to free you from having to pay for your electricity for 25-30 years. A Lease or a PPA will never free you from that cost. Purchasing your own PV solar array is an investment that keeps on giving!

Selling a Home

Due to the long nature of Lease and PPA agreements, it is often the case that the original lessee may want to sell their home at some point during the term of the contract. This is made more difficult if the homeowner does not own their panels. When it comes to selling, the homeowner has a few options, they can Transfer the Lease/PPA to the new homeowner, prepay the agreement, have the system moved to their new home, or in the case of a PPA they can purchase the system outright (losing out on incentives already redeemed by the company you signed the PPA with).

When it comes to transferring your Lease or PPA, the homebuyer must meet certain qualifications: they must be willing to assume all of your rights and obligations under the agreed upon contract, in addition to qualifying for one of these three typical standards: having a FICO score above a particular level (usually about 650), by paying in cash for the home, or be willing to pay a $250 “credit exception fee.” Once these qualifications are met the transfer can go through to the buyer.

If the homebuyer does not want to go this direction, the homeowner has the option of Prepaying the Lease/PPA and just transferring the Use of the System. If this sounds like an awful option, do not worry, you are a completely sane person. With this option, you are essentially purchasing a solar system for your homebuyer that the homebuyer will only get to utilize for the amount of time left on the contract. During this time, they are responsible for all parts of the contract except for the monthly payment portion. This is very appealing for the homebuyer, as they essentially get a free solar system.

With moving the system you have two options. You can get the lessor to move it for you or you can go with a third party. It is wise to go with the lessor as getting a third party to move the system could potentially void any limited warranties that may be in place. This can be costly though. The price can be different depending on the installer. From the contracts we have seen, the installer requires that they perform an audit of the new property for $499. Then, if they deem the new property viable, they will perform the move for a minimum of $499. Imagine all your moving expenses, then add at least $1,000.

Although we have not seen this offered in a lease, in a PPA you have the option to purchase the system before the expiration of the contract. This can be done by calculating the amount you would have paid by using a production estimate and then multiplying that by the average kWh price you would have been subject to (times a 5% discount – maybe to make up for the fact they know they are overcharging?). Either way, if you think there is a chance you will sell your home in the next 25 years, read your lease or PPA terms and conditions very carefully…They don’t make it easy!

Additionally, by signing a lease or PPA agreement, there is a significant loss in potential home value. It is proven that adding a purchased solar system to your home increases its overall value. Then when you factor in the extra hassle of transferring or moving that leased/PPA system, you could even say you are depreciating the value of your home in a potential homebuyer’s eyes; not to mention the extra costs you could incur by having to buy out the remainder your contract.

Economy of Scale and Quantity Over Quality

Another drawback to big solar companies leasing or PPA option is that they are working within an economy of scale that does not see you as an individual. As of 2015 SolarCity boasts 190,000 customers in 16 states and have access to 190,000+ roofs from which they can deploy solar. In the lease/PPA business model, the solar array that they’re installing is an investment for the lessor and their backers, not for the lessee. While the Leasing/PPA scenario may be cheaper at the outset, the long term savings and benefits are modest.

Because they’re working within a much larger economy-of-scale Leasing/PPA companies do not need to spend as much money on equipment, nor do they need to confine themselves as strictly to the optimally-oriented roofs. We often have customers ask us why we do not install on northern facing roofs. In short, they do not produce as well since they face away from the most direct sunlight. Why would you pay full price for a panel that will, at best, only produce 50% – 75% of its maximum production? This is different for lease/PPA companies who are getting fixed payments from their customers, plus the added incentives, Net Metering benefits and SRECs. For lease/PPA companies the best bang for the buck is quantity over quality.

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Figure 1: The figure above is determined using the rate of inflation for electricity in the US since 2000 and the current cost of electricity for residences in Maryland. The Lease and PPA numbers are from ACTUAL contracts from the largest Leasing/PPA company in the U.S. The Purchase numbers come from a system designed to closely mirror the size of the lease system utilized by the aforementioned Leasing/PPA company’s contract. The PPA system size is irrelevant as PPA costs are determined by power produced and not the overall size of the system. When placed at the optimal tilt and direction, each of these system sizes will cover all electrical usage of the average Maryland resident. The purchase numbers take into account all incentives that would be received (Federal ITC, Maryland Grant, SRECs, and Net Metering Benefits). The purchase numbers DO NOT take into account the amount of value a homeowner has added to their home. The lease and PPA take into account NO benefits as leases and PPA’s forfeit such incentives to the lessor.

 

Overall Cost Benefits of Purchasing PV Solar

When comparing the yearly costs for solar, purchasing is the only way to go. As seen in Figure 1, the yearly cost for purchasing your system stays consistent for the entire duration of the payback (assuming you took out a loan; if you paid completely out of pocket, you would expect to see no yearly costs) while the yearly cost of a Lease/PPA only rises by the predetermined escalation rate. While designed to ensure that you would not be paying more for your solar-generated electricity, this escalation rate may not actually result in lower payments. It is quite possible that you could be paying more for the power from the array than you would have paid staying on the utility after as little as ten years. This is due to the fact that the yearly PPA kWh price may rise faster than the prices per kWh that the utility could be offering. This is stated and built into the contract- we call this the “kicker.” The main reason the PPA company includes this inflated escalation rate is to maintain a steady, consistent revenue stream. Since the value of the SRECs generated by the system you are leasing steadily decrease in price, they must increase the amount they get from you per kWh to compensate for the loss.

At the end of the lease or PPA term, you will have spent as much money on your system as you would have with a purchased system. When you include the amount you would have gotten back in incentives, you actually end up paying substantially more for your solar system, as shown in Figure 2.

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Figure 2: The graph above compares the total amount of money spent on a SolarCity PPA, SolarCity Lease, and MSSI Purchase both before and after incentives. All Lease and PPA numbers are from a standard 20 year contract.

Those are just upfront costs and totals!! When you begin to compare savings, you begin to wonder why anyone ever chooses a Lease or PPA Agreement!

 

The Long Term Gains Associated with Purchasing PV Solar

Although a PPA/Lease is initially a cheaper option, when it comes to the long term gains, purchasing is, without a doubt, the most financially beneficial way to go solar. When you lease or sign a PPA, you are paying continuously for the full length of the contract, which is conventionally 20 years. With a purchased system, you are expected to be receiving energy for 25-30 years. This is an extra 5-10 years of solar energy and if your system paid for itself (through the avoided electric purchase from the utility and incentives) in 10-12 years (the average for purchase system paybacks), you would be seeing 15-18 years of free energy. This can catapult your savings! Not only are you no longer paying for your system, you are getting free energy, money for your SRECs, you have increased the value of your home, and you are potentially getting paid by your utility! In figure 3 you can see this in action. Initially, with the Lease and PPA, you are saving more. Then around year 8-10 the purchase option surpasses the Lease and PPA in savings. Once you hit that 12-year mark (on average), it is off to the savings races!

figure-3-graphFigure 3: The amount of savings you would experience with the same 3 solar options used previously.

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Figure 4: The difference in savings between purchasing and the other two solar options.

Figure 4 illustrates in more detail the money you could lose out on by not choosing to purchase your system. By the end of your system’s life, the average homeowner in Maryland, with a system built to cover their energy needs, would see tens of thousands of dollars in revenue that they would never acquire had they gone with a Lease or PPA Agreement. When you look at the long-term advantages, the option on whether to purchase your system or not becomes a no-brainer.

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At the End of the Day…

If going solar is something you have been considering, you should now know that Leasing or signing a PPA Agreement is not an exemplary method to leverage your dollars. It makes it difficult to sell your home, you forfeit all financial benefits, and in the end you miss out on at least 5 figures of savings. No matter which path you choose, we urge you to thoroughly assess your contract and Terms & Conditions.

Installation Pictures From The Sky: MSSI Installation in Marbury, Maryland

Back in early 2016 MSSI installed this 19.5 kW system in Charles County. This Customer wished to max out his rooftop and generate as much energy as possible, so we used both his barn’s and home’s roof.

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Since installation in January, this system has produced a total of 14,230 kWh and is slated to cover his usage by 109% this year.

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Additionally, since system turn-on in January, this family has saved 21,617 lbs of carbon dioxide from entering the atmosphere, equivalent to 555 trees having been planted.

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Landscaping For Solar

MSSI Logo PV Solar-Friendly Small Trees and Large Shrubs


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Picture taken from a Solar PV Array MSSI installed in Silver Spring, Maryland.


You have solar panels and you love them. You’re happy with what the sun is doing for you, but you also want a little bit of shade. We understand, so in honor of amateur horticulturalists everywhere we thought it’d be helpful to put together a starter list of small trees/large shrubs that can provide a little bit of PV-friendly shade in your landscape.

In lieu of using front porch roof structures, pergolas, arbors, awnings or other horizontal measures to shade the home, use native, slow to medium growth deciduous trees/large shrubs for the same purpose. Use species you might already be familiar with like Dogwood and Eastern Redbud. They are deciduous and by dropping their leaves in the winter, they will still let the sun in to warm the home during the winter months. Below are some you may already know and some that may be all new to you.

Rain Garden

Small Trees:

1. Eastern Redbud, Cercis canadensis

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Redbud is a 15-30 ft. tree, it’s pink to purple and sometimes white flowers create a showy spring flower display. Vase shaped with distinctive heart-shaped leaves, turning golden in the autumn, and tolerates full sun.

2. Flowering Dogwood, Cornus florida

Cornus florida

Flowering dogwood is a 20-40 ft., single- or multi-trunked tree with a lovely spreading crown graced with white and sometimes pink flowers for a long bloom period during the spring. Gorgeous scarlet foliage in the autumn and produces small red berries that birds prize. Does best in part shade, but will tolerate full sun. Is also the larval host for the Spring Azure butterfly.

3. Serviceberry, Amelanchier canadensis

Serviceberry

Serviceberry is a small, understory tree or large, multi-trunked shrub with many upright branches that grows 6-20 ft. high. Its crown is delicate and open. Multitude of white blossoms followed by a small, crimson-colored, apple-like fruit that wild birds adore. Fall foliage is orangey-red. Tolerates all light requirements.

4. White Fringe Tree, Chionanthus virginicus

Fringetree

White Fringe Tree is a 15-30 ft., deciduous tree or shrub that displays clusters of fragrant, white blossoms during the spring. After flowering, dark blue, clusters of fruits are produced. One of the last to bloom and leaf out in the spring, this will add a last burst of color to the spring show. Prefers part sun. Larval host for the Rustic Sphinx.

5. Witch Hazel, Hamamelis virginiana

Witch Hazel

Erupting into golden blooms a full month before the oft-planted non-native Forsythia, Witch Hazel is a small tree that is often multi-trunked and usually growing 10-15 ft. tall. The large, crooked, spreading branches form an irregular, open crown. Its flowers are not only yellow, but deliciously-scented. During the summer months, its foliage is light green, but then turns a brilliant gold in autumn. Bark is smooth and gray and full sun brings out the best in this tree.


Large Shrubs:

1. ‘Mt. Airy,’ Fothergilla, Fothergilla major

Fothergilla Major

Large Fothergilla is a 6-12 ft., deciduous shrub with lovely crooked, multiple stems. Gorgeous blue-green foliage is colorful in autumn. The fragrant flower, appearing as a mass of stamens, is white, looks like a fuzzy bottle brush and appears after the leaves have come out. Full sun is best for this beauty.

2. Spicebush, Lindera benzoin

Lindera Benzoin
Because of it early display of yellow flowers, Spicebush is often referred to as the “Forsythia of the wilds.” It is a single- or multi-trunked shrub, 6-12 ft. tall, with glossy leaves and graceful, slender, light green branches. Much like the aforementioned forsythia, the buds traverse across each twig and are followed by glossy red fruit. Both the fruit and foliage are aromatic. Leaves turn a colorful golden-yellow in fall. Tolerates all sun intensities and is the larval host for three butterflies: Eastern Tiger Swallowtail, Spicebush Swallowtail and Promethea Silkmoth.
3. Elderberry, Sambucas canadensis

Sambucas canadensis

Black Elderberry is an open and graceful shrub with both woody and herbaceous branches, growing up to 12 ft. tall. Flowers are disk-shaped, white, in broad, flat, conspicuous clusters up to 10 inches or more in diameter, appearing from May to July. Fruit is dark-purple, berrylike, and edible. Birds love them.

4. Arrowwood Viburnum, Viburnum dentatum

Viburnum dentatum

Arrowwood Viburnum is a 6-8 ft. shrub with multiple stems in a loose, rounded habit. White, flat-topped flower clusters are followed by dark blue berries. Gorgeous yellow to wine-red foliage in the autumn. Tolerates all intensities of sun and is the larval host for the Spring Azure Butterfly.


A Few Last Thoughts
A few notes: on the west side, use vertical shading to stop the low-angle, late-afternoon sun from reaching walls and windows. This can take the form of trellises and vines on the wall, screen walls, shrub-like plants and trees. As far as height of trees, stick with a tree or shrub that isn’t going to get higher, or much higher, than the south-facing roof line. Shade from the west will shorten the productivity your PV modules each day, whereas shade from the south dramatically reduces production all day long.

Installation Pictures From The Sky: MSSI Installation in Arbutus, Maryland

MSSI Logo Petite, Yet Mighty PV Solar Power Array in Arbutus, Maryland!

 

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The owners of this historical home in Arbutus, Maryland wanted to go solar. While the hips in their roof presented some challenges, we were able to design and install a 3.68 kW system for them. 

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Installed in July 2011, this PV solar system has produced a whopping 15.65 MW of electricity, has saved 24,235 lbs from entering the atmosphere, an equivalent of having planted 610 trees!

Solar Power Is A Friend to the Chesapeake Bay

MSSI Logo Solar Power is a Friend to the Chesapeake Bay

Chesapeake Bay

As you may be aware, the Chesapeake Bay was once an abundant waterway, home to a teeming population of blue crabs, oysters, rockfish and impressive forests of sea grass. Because Maryland borders the Chesapeake Bay we are on intimate terms with the world’s largest estuary and have known for many decades that our beloved bay is in trouble. 

According to the Chesapeake Bay Foundation, sea grass coverage continues to hover at around 20% of historical levels, while blue crab populations have dwindled to 50% of their population levels recorded during the 1980’s. Rockfish continue to struggle to regain a foothold in the Bay and the oyster population is now 98% below historical numbers. In fact, it would take the Bay’s current population over a year to filter the Bays’ waters; at prior population levels it would have taken only a few days! Due to a combination of nitrogen pollution, habitat loss and over fishing, the health of the Bay is in crisis. At a loss of $4 billion during the last 30 years for both water men and the Chesapeake Bay seafood industry, it is indeed a precarious situation for the world’s largest estuary.

Good News Surfaces for the Bay

According to a Bay health scorecard recently released by the University of Maryland, there seems to be a turnaround underway. The blue crab population has gone up, the oyster harvests have increased, amounts of dissolved oxygen in the Bay went up and aquatic grasses have increased by 50% from 2011 to 2015. While there has not been meaningful movement made by either Virginia or Maryland on decreasing the amount of nitrogen pollution generated by poultry farms on the Eastern Shore (in fact, it is has gotten worse), the overall amount of nitrogen has decreased and with it the choking blooms of algae associated. Why?

Connection to Renewable Energy

Well, believe it or not there is a connection between the health of the Chesapeake Bay and solar power! More precisely, energy that displaces coal-fired electricity and the the high levels of air pollution associated with it. In fact, about a ¼ of the nitrogen pollution entering the Bay is from the air! Beginning with the 2006 Maryland Healthy Air Act and then the 2009 Obama Administration regulations imposed on coal-fired power plants we have seen a major reduction in air born nitrogen polluting the Bay. We can’t help but think that the 349 MW of solar energy currently installed in Maryland may have also had a part to play in such good news! After all, we rank #13 in the United States in installed solar capacity! Because of the cleaner energy choices we make, our Chesapeake’s water becomes cleaner and clearer too!

Blue Crab

Installation Pictures From The Sky: MSSI Installation in Phoenix, Maryland

Check out this gorgeous 9 kW system that we designed for a family back in 2012.

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When reviewing us this Customer said that it had been “a pleasure” working with Colette and the MSSI team and that our “friendly” and “knowledgeable,” low-pressure sales approach was appreciated. Since installation in 2012, this satisfied Customer has saved 62,492 lbs of carbon dioxide, equally 1,604 trees having been planted!

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Let’s hear it for solar!

 

PACE Funding Now Available in Maryland for Commercial Solar Projects!

MSSI Logo        PACE Funding Now Available in      Maryland for Commercial Solar Projects!

Picture taken from a Solar PV Array MSSI installed in Chestertown, Maryland.

PACE Funding is Now Available for Some Counties in Maryland

We are pleased to announce the emergence of Property Assessed Clean Energy (PACE) funding for Commercial Solar Projects here in Maryland. Currently only available in Montgomery, Howard, Anne Arundel and Queen Anne’s Counties, PACE-funding opportunities are expected to spread into neighboring counties within the next few years here in Maryland.

Commercial Solar

What Is PACE?

As stated above, PACE stands for Property Assessed Clean Energy, and is a policy that gives business owners an affordable way to mitigate the high upfront costs associated with larger-scale commercial clean energy projects by attaching the amortization of a loan to your yearly property tax payments. Huh?

Here’s the nuts and bolts: in partnership with the State of Maryland, Greenworks Lending provides loans to commercial businesses wishing to invest in clean energy and/or efficiency upgrades. The loan is then paid back through your property taxes over the course of 20 years. The loan is added as a lien to your property taxes for the life of the loan. It does not raise your property taxes by assessing the added value of the solar, but simply adds the loan payments to your yearly property taxes.

In order to apply for PACE funding the borrower in question must be the private owner (i.e. not the government) of the property. The borrower cannot have gone through bankruptcy. The loan amount can be up to 20-30% of assessed value of the building and land of the property.

What’s So Great About PACE?

PACE makes is super-easy to take out a loan, and it gives businesses first-year cash flow. How?

In the first place, PACE allows businesses to lower their overhead immediately by either eliminating or significantly reducing their utility bills. Additionally, with PACE the business owner is able to utilize the Federal 30% Tax Credit, any local incentives, Net Metering, the Maryland Energy Administration Grant, MACRS and the production of SRECs.

Through PACE, Greenworks Lending offers “sculpted ammortization” which means that the bulk of your loan will be paid back within the first 6 years of the array having been installed. For instance, if a borrower takes out $100,000 in PACE financing, during the first year, the borrower would receive $30,000 back from the Federal government on top of being able to depreciate 50% using MACRS. After taxes the borrower will get back an additional $50,000 for having invested in solar. During the first year, the business will pay back a larger portion of their loan. Because of the incentives coming back to the borrower within the first 5-years, the loan payments at the beginning are higher and allow the borrower to virtually pay back the bulk of the loan within the first 6-years. This makes the remaining payments on the loan super-affordable. Pretty awesome!

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Picture taken from a Solar PV Array MSSI installed in Randallstown, Maryland.

 

MSSI is a Registered PACE Contractor

Here at MSSI we’re proud to be a registered PACE Contractor for the State Of Maryland. We can help you look at solar for your business and whether PACE will work for you. PACE really creates an affordable alternative to leasing and power purchase agreements and allow businesses to leverage solar power as an investment and create tax-free value for their properties. Really, its a win-win.