FORT LEE, NJ- “Here Comes the Sun” isn’t just an old song, it’s a fast-growing industry in New Jersey, as commercial solar installations have expanded by nearly 400% since 2008, says one manufacturer. And that growth should continue thanks to the extension of the Renewable Energy Grant program by the U.S. Congress.
Tax legislation passed in December also extended the grant, which provides 30% cash rebates for qualified projects in lieu of certain tax credits. Created as part of the 2009 stimulus package and known as the Section 1603 Grant, the program was to expire at the end of 2010, but will now continue through the end of 2011.
“The Renewable Energy Grant has contributed to significant growth of this industry in New Jersey,” says Adam Putter, president of Fort Lee, NJ-based Solar Roof Development, in a release. Solar Roof Development is a consulting firm that advises on incentives and installers, largely for commercial properties. “With the latest action, anyone who purchases a solar installation will continue to receive a check from the US government amounting to 30% of the system’s cost.”
The legislation also makes projects put into service between Sept. 8, 2010 and Dec. 31, 2011, eligible for 100% accelerated depreciation of the system, minus half the cash grant or investment in its first year. The state also provides incentives, including rebates based on energy efficiency measures and solar renewable energy certificates.
The result is that New Jersey is second only to California nationwide for grant-generated solar projects, Putter says. The state received 164 grants totaling $241 million in investments and $72 million in funding in the past year.
Among the newest solar panel enthusiasts in the state are government offices. Union County will install approximately 3.4 megawatts of solar panels on 16 entities, including community centers, fire houses, libraries and other facilities in 2011. Morris County already has installed 3.22 megawatts of solar power on municipal buildings.
The industrial market in the state, the third largest in the nation, provides a major opportunity, according to Putter. “Industrial solar applications are particularly effective because these buildings have substantial roof space and require a lot of electricity," Putter said. “Future energy prices are expected to rise dramatically. The incentives that are available today, combined with the vastly improved technology, make the opportunity to ‘go solar’ better right now than it will ever be.”
As a case in point, private equity firm KTR Capital Partners on Wednesday announced that it had selected Solar Power Inc., based in Roseville, CA, to design, engineer, and construct a five-megawatt rooftop system for installation on the 645,000-square-foot White Rose Inc. distribution warehouse in Carteret, NJ. “This is a significant project for us,” says Steve Kircher, chairman and CEO of Solar Power, in a release. “The White Rose installation will be one of the largest systems of its type in the nation.”
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