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• Tennessee has a grant program, TN-CET (Tennessee Clean Energy Technology), for businesses. Home businesses are not eligible. Non-profits, schools, religious organizations and government buildings are not eligible. The grant is for 40% of the installed cost and maximum amount is $75,000.
• There is a 30% federal tax credit (not a deduction, but a credit). Most companies count the grant money as income so that the 30% tax credit can apply to the entire cost and not just the amount beyond the grant.
• Five year accelerated depreciation is available through ePact 2005.
• TVA Generation Partners will pay 20 cents per kwh for demand metered customers, generally double the local rate. If you are not demand metered the rate is 15 cents per kwh which would also be about double what you pay. You can expect production of approximately 1200 kwh a year, for each kw of installed capacity. This amount is effectively doubled, in dollar terms, by the Generation Partners program.
The public relations can be valuable for some companies, depending on location, circumstances and the desire to use and promote clean, renewable energy and to be an environmentally responsible company.
After establishing general information, the client can proceed with design and pay a design fee. This includes a site assessment to gather information on existing mechanical and electrical conditions. We inspect and measure the roof, determine potential locations of the array(s), evaluate shading conditions at all times throughout the year, decide on appropriate supports and mounting, and determine how a PV sytem will be tied to the electrical system and grid. This information is used in designing and pricing a turn key system. If the owner decides to install the system based on the proposal and quote, the fee is counted toward the contract. If the owner declines, the design fee is kept for services rendered.
The quote includes a letter describing the scope of work, one-line electrical diagram, and a site or roofing layout. Assistance with requirements of the local utility, TVA, and the TN-CET state grant program also is provided. The lump sum price includes all taxes, shipping, and electrical permits.
Approximately 100 square feet of roof space is needed per kw DC installed. Commercial systems range generally from 5kw to 50kw, so that would be 500 to 5,000 square feet of roof space. For amorphous silicon, such as Uni-solar shingles you only get 6 watts per square foot, so you need about 66% more roof space. Costs generally range from $45,000 to over $350,000. Of course, there are many variables, but these are average costs.
Solar panels
come with 25 year warranties, and there is a widening view in the
industry that they may last substantially longer than that, as some
terrestrial photovoltaic systems have been producing energy now for 35
years. There are no moving parts and the cells are encapsulated and
framed in aluminum.
Electricity went up 16% in Nashville the year before last, and a 9% increase is curently in the works. How much will it be in 10 years or 20 years? With solar electricity you lock in your fuel costs with today’s prices and benefit from inflation and market volatility as well as future charges for carbon or other emissions. What about the water required to cool coal and nuclear plants? Browns Ferry closed a nuclear plant this summer due to lack of water. Generally, people are motivated to install these systems by a desire to produce clean energy locally, an uncertainty over future energy prices, the independence from market manipulation, and/or for environmental concerns. Unlike conventional sources, solar energy has no fuel cost, so the future price of electricity is known.
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