Commercial

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Businesses are uniquely positioned to benefit from the benefits of a solar PV system. In addition to federal, state, and local incentives businesses have access to substantial and valuable benefits. We will work with your executive, finance, and marketing staff to help your company realize the benefits of accelerated depreciation and new publicity and marketing opportunities. Kenergy Solar applies a six-step process to your project to ensure a successful solar installation.

Accelerated Depreciation

A commercial solar PV system can be depreciated using the federal MACD schedule. This allows for a 50% depreciation in Year 1 followed by a depreciation of the remainder of the system cost over a 5 year period. This benefit is typically valued at 26% of the initial system cost.

Publicity and Marketing Opportunities

  • The growing number of residential solar customers in your community will have an increased affinity for local businesses that choose to go solar. Kenergy Solar will work with your organization to publicize your installation including support for tours and educational seminars at your location.
  • Kenergy Solar will work with you to offer a special Solar Home Discount to your employees. This unique benefit will impact employee morale and loyalty to your organization at no additional cost to your company.

Commercial Financing Options

Outright Purchase

  • Customer secures financing;
  • Customer takes tax credit;
  • Customer sells Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI);
  • Customer pays for Operation and Maintenance (O & M);
  • Kenergy Solar facilitates deal components.

 

Lease Agreement

  • 7-10 yr contract for fixed payments below current electricity costs;
  • Buyout provision at lease-end;
  • Customer sells Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI);
  • Finance company usually takes tax credit;
  • Customer pays for Operation and Maintenance (O & M);
  • Kenergy Solar facilitates deal components.

 

Power Purchase Agreement (PPA)

  • Customer contracts to pay fixed/known escalation rate for electricity (usually at or below current energy costs);
  • Customer and host are often, but not always, the same;
  • A 3rd party, e.g. abank or insurance company, owns the plant;
  • A 3rd party receives Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI);
  • A 3rd party pays for Operation and Maintenance (O & M);
  • A 3rd party receives tax credit.

2009 Regional Electricity Rate Increases (cents / kWh)

State 2009 2008 % Increase
Delaware 13.19 12.6 4.7%
District of Columbia 12.8 10.67 20.0%
Maryland 14.78 12.8 15.5%
Virginia 10.19 8.47 20.3%