Report puts Mass., N.Y. in solar spotlight
Among Northeast states, New York and Massachusetts have the right conditions to lead a new boom in commercial solar-energy installations, according to a new report.
The 2015 Solar Economy Barometer was prepared by Wiser Capital, a financial services firm in Santa Barbara, Calif. that facilitates and invests in mid-scale commercial solar projects.
The report analyzed the history and potential of solar energy in nine Northeastern states: New York, Pennsylvania, Massachusetts, New Jersey, Connecticut, Maine, New Hampshire, Rhode Island and Vermont. The nine are listed in order of the number of commercial sites found to be suitable for future mid-scale solar installations, with New York leading the list with 81,604 such sites. Next is Pennsylvania with 53,222 sites, followed by Massachusetts with 46,938 sites.
However, the report notes that available commercial rooftops are only part of the picture in determining prime solar markets. Higher-than-average utility rates and regional incentives also make solar energy systems attractive.
“With consideration for costs and incentives, New York and Massachusetts will lead the new solar energy boom in the Northeast,” Wiser Capital said in a statement about the report.
The study defines a mid-scale commercial solar facility as between 50 kW and 2 MW, with the average being a 350-kW system.
Collectively in the nine Northeast states, the 274,637 suitable mid-scale sites identified could produce 94,733 MW of renewable energy, according to the report. Massachusetts’ share is a potential 15,975 MW. Further, the untapped solar market potential for the Northeast amounts to about $67.5 billion in investment opportunity, Wiser Capital said. Of that, $11.5 billion in investment opportunity is in Massachusetts.
In addition to environmental benefits, solar installations can deliver large cost savings, the report says.
In Massachusetts, according the report, a typical commercial solar installation – 350 kW, covering 80 percent of electricity use for a business that uses about 38,500 kWh per month – would save close to $1 million over a 25-year period. Wiser Capital points out that the 25-year savings calculation, $999,763, for Massachusetts is helped by its strong SREC (Solar Renewable Energy Credit) program, as well as its relatively low escalator rates for solar PPAs (power purchase agreements) compared with historical utility cost increases.
Nathan Homan, executive director of Wiser Capital, said in the statement: “In order for these mid-sized corporations across the Northeast to generate significant savings on their electricity usage, you first need to attract investor interest. Our study demonstrates that this region has a strong mix of returns, real estate, stable metering, enticing incentive policies and the needed solar assets to make for a strong opportunity.”
WBJ Web Partners
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