What to Know When Considering Solar Energy Solutions

Aug 20, 2024

As we move towards a zero-carbon future, on-site photovoltaic energy production will play an increasingly important role in achieving this goal. You may be considering installing photovoltaic panels (or “solar”) on your property for a myriad of reasons. Municipalities in several cities and states, such as the State of California, Denver, Colorado, Boulder, Colorado, New York City, and ETC are starting to require solar, or at least include solar as one of the options of requirements, such as in Denver’s Green Buildings Ordinance and New York City Local Laws 92/94.

States and local governments are starting to require existing buildings to reduce greenhouse gas emissions (see, as an example, a recent blog about the Energize Denver Ordinance in Colorado), with solar installations being one of the options to reduce a property’s greenhouse gas emissions. You may want to reduce your energy bills or carbon footprint as part of ownership’s sustainability goals. Or perhaps you have heard of solar incentives or rebates that you would like to take advantage of.

The compelling case for solar energy: Incentives

Whether it’s regulatory-driven or a proactive desire for overall energy efficiency, solar solutions have many advantages, as they save money/reduce operating costs, give access to tax breaks, increase property value, reduce environmental impact, and give power independence.

Solar companies offer alternatives to ownership of photovoltaic systems, including a leasing option or power purchase agreement (PPA). With a solar lease, a solar company installs and maintains a solar system on your roof, and you pay a fixed monthly fee for the use of the system. In this scenario, you don’t own the system, you don’t have to make a large upfront payment, and the lease covers the system’s maintenance and service. However, you might not qualify for rebates or incentives with a solar lease. A solar PPA is similar to a solar lease, where a solar company installs and maintains the system for you, but you pay for the electricity you use each month, instead of a fixed fee. PPAs and solar leases can be good options if you want to reduce your monthly energy bill without having to worry about maintenance.

Ownership of a PV system can allow you to take advantage of rebates and incentives that are available. There are Federal Solar Tax Credits, State Tax Credits, Performance Based Initiatives (PBIs), Solar Renewable Energy Certificates (SRECs), utility rebates, tax exemptions, net energy metering, grants and subsidized loans. Solar installers will typically provide a breakdown of the available rebates and incentives for your proposed project. It is prudent to do additional research to make sure you are taking advantage of all the available financial incentives and/or rebates.

Are your buildings candidates for solar panels?

Not all buildings and properties are best suited for the installation of solar panels. Factors to consider for optimum solar panel installation locations on the roof of a building include:

- Building location

- Roof incline,

- Available space for the panel installation and for maintenance

- Electrical interconnection and electrical capacity

- Roof structural load capacity

- Existing roof age

- Condition

- Warranty information

- Building orientation and sun exposure

The area being considered should receive adequate solar radiation, which means avoiding obstructions in the installation areas to increase the reception of solar radiation by the systems. Solar vendors typically look for the energy requirement of a building or property when sizing a system. This allows them to aim to size the system closest to the building’s energy consumption.

Other factors to consider are choosing an accredited solar company for the installation—one that uses quality products and provides attractive warranties and regular servicing and maintenance of the systems, utilizing quality products, length of the installation, and cost of the PV system.

How do I make the most informed decisions about solar?

When assessing a property’s suitability for the installation of a PV system, it may be helpful to engage the help of impartial advisors. While solar vendors can provide extensive information in their proposals on the price of the systems, proposed design, optimal layouts, and research on available incentives and rebates, having a third-party consultant to review these proposals and help in identifying priority areas in order to ensure the well-being of the building, occupants, and ownership. Consultants can help to:

• Compare options such as whether to go with a solar lease, PPA, or ownership of a PV system
• Provide reviews of solar designs and commentary on maintaining the integrity of the existing building, such as advisories to avoid penetrations through roofs
• Make recommendations of extending roof warranties or replacing roofs prior to installation of these systems, depending on roof age and warranty terms
• Review the lease agreement or power purchase agreement
• Perform a back-check of solar vendor calculations and designs for optimization
• Give input on aesthetic recommendations for the installations

As an example, we at Marx|Okubo consulted on a project that involved the installation of a 5-MW photovoltaic system on the roof of an existing one-story warehouse facility. Our team reviewed the project’s PPA, design drawings, specified equipment, existing roof warranty, and project schedule for the building’s ownership. As part of our review, we commented on: completeness of the design, available tax incentives, roof penetration, routing of electrical conduit from the roof to at-grade equipment, the capacity of the PV system as represented in the design drawings vs. the PPA, and requests to the solar installer to confirm existing warranty requirements with respect to installing the PV system at the roof. The initial design included several conduits running from the roof down the side of the building, though as a result of Marx|Okubo’s review and commentary, the solar developer added an enclosure (a $50,000 investment) to match the building façade and hide the conduit. So, upon project completion, the building reaps solar benefits while it’s much more aesthetically pleasing than it would have been without Marx|Okubo’s involvement.

Ultimately, what we see when we consult on solar panel use are a range of benefits, such as reduced carbon emissions, energy cost savings, energy resiliency, and verification that the building condition remains intact, or is improved.

If you are considering solar panels on your commercial buildings, Marx|Okubo can help you navigate the process and decision-making in a streamlined and informed way. Please contact Jamie Rivera, PE, Senior Associate (jamie_rivera@marxokubo.com), with any questions.