Solar Development and Renewable Energy
In the 1800’s wood was the primary source of energy accounting for about 90% of energy production. As natural gas, petroleum and coal expanded use the US became less reliant on wood. Today we have solar, wind, biomass, hydropower and biofuels create alternative and renewable energy source. Many of these sources are impractical or too costly to build on a small scale. The one renewable energy source that is cost effective for a business or homeowner is Solar.
In 2014 about 13% of energy in the US was generated from renewable energy sources but only 5% from Solar, making solar increasingly more attractive for business who own land or have large unobstructed rooftops. So what is Solar energy and why should I consider this as a strategy. Solar energy uses photovoltaic cells (PV) to convert sunlight into direct current or DC power and then this is converted into alternating current or AC power, the same power you get from the outlet in your home of business.
Solar is certainly not an option for every property or portfolio owner. The installation of solar is a long term investment and there are a few strategies that work for solar. The first strategy for solar is a property owner could pay cash or finance a solar buildout. This gives full control of the solar array to the building owner. The building owner will benefit from the electricity produced from the solar and the savings will be the highest eliminating the delivery charges for the electricity consumed from the grid saving about 40% of the total cost of electricity purchasing and selling energy back into the grid that is unused by the building, saving additional monies. There is also a substantial tax benefit and ongoing clean energy credits that can be sold to produce additional revenue. The building owner will also have to maintain the solar array for the life of its use.
The alternative option to building solar and one that is very appealing to building and land owners is a power purchase agreement. In this scenario the building owner contracts with a solar developer, typically for a 20-year agreement. The solar developer bears all the cost of building and maintain the solar array and they will sell the electricity back to the building or land owner for a pre-determined price per kilowatt hour, this still saves the building or land owner money because the delivery charged for the amount of energy produced is saved, this will save about 40% on the cost of the energy produced by the solar. The developer in this case will benefit from the tax and clean energy credit. The third scenario is if a company owns a lot of land but uses little energy the solar developer will lease the land for 20 years and sell the electricity produced back to the grid. Power Logix has relationships with all major solar developers, we create an RFP on your behalf with proper specifications for your project. We review all proposals and discuss the financial benefits of each option with you.
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Take control of your energy costs with Power Logix energy purchasing technology
Power Logix provides you and your business a quick and easy way to shop for your electricity and natural gas services. Our technology allows us to create an RFP and invite top tier suppliers in your geographic area to bid on your electricity and natural gas services. Our platform will save you time and money. With all suppliers bidding on your services Power Logix puts purchasing control in your hands and not the suppliers. Our system is fully automated including electronic contracting and paperwork.