Q. Are PV systems practical for churches?
SD: The economics for PV systems can be very complicated. That is because the cost of a system is greatly affected by state and federal incentives. Many states have rebate programs and grants. All of them are different. The federal incentives are all tax credits or tax deductions. Since non-profit organizations don’t pay taxes, these federal incentives are not available to churches.
Q. What is the pay-back period for a PV system?
SD: This varies by state. It depends on the rebate programs and on the cost of electricity. In Connecticut, where I live, we have the highest electricity rates in the United States. There are places in the country where the electricity rates are 1/3 of Connecticut’s. Generally speaking, the northeast (excluding upstate New York’s cheap hydroelectric power) has the highest electricity rates in the country.
Q. What is the anticipated lifespan of a PV system?
SD: Quality PV systems come with a 10 year defects warranty and a 25 year performance warranty. They have no moving parts so they are maintenance free and are designed to operate for 40-50 years.
Q. Are there non-economic benefits to PV systems?
SD: I recently helped a congregation apply for a New York state grant. The associate pastor told me that with the publicity that would come with the PV system installation; he believed they might attract 10-20 new families. Many people do believe that “going green” is good stewardship.
Q. Are there ways, other than purchasing a system, that would allow a church to benefit from solar?
SD: Yes there are! In most states that have REC’s (renewable energy credits) and rebates, it is possible to execute a PPA (Power Purchase Agreement). This is a way for a church to save money on energy costs, go green, and not spend any money out of pocket.
Simply stated, the church signs a contract with a company that installs solar panels on the church property at the company’s expense. The church agrees to buy the electricity made on their property at a discounted rate which immediately saves the church money. Typically, after 10-15 years the church owns the system. The company can take advantage of the federal tax credit and the federal accelerated depreciation of the system that a non-profit would not get to use. Currently one of the best states for these PPA plans is New Jersey, though, other states also have PPA companies.
Steve Domyan is a Solar Sales Engineer for Ross Solar Group of CT, NY, NJ & PA
