Steven Schleider, Metropolitan Valuation ServicesWhen last I wrote about solar, it was to shed some light on why solar energy has lagged behind other energy savings, green and sustainability initiatives in New York City.
There are so many benefits to be realized from solar power. It’s clean, cost efficient, energy saving, relieves pressure on the traditional power grid and is even attractive. But its growth has been stunted by two huge obstacles – affordability and achievability. Now governments as well as higher learning institutions are leading the charge (pardon the pun) to have New York City realize solar’s vast benefits.
It’s not just about long-term energy savings, although, understandably, reduced costs are a priority for property owners. It’s also about good corporate citizenship and making a contribution to a healthier city. According to CleanTechnica, “maximizing New York City’s solar potential with 410 MW of solar would reduce emissions by 1.78 million metric tons, 3.7% of the city’s total emissions.”
The good news is that costs are going down for solar which, along with many incentives, will greatly improve ROI.
Costs have decreased as solar technology advance and solar panel manufacturers became more efficient. According to the Solar Energy Industries Association (SEIA), “The cost to install solar has dropped by more than 70% over the last 10 years.” The SEIA also reports that average price for a commercial PV (photovoltaic cells that convert sunlight to electricity) project “has dropped by nearly 30% in the past three years alone.”
Deutsch Bank, which installed the largest solar PV system in Manhattan and currently has the highest elevated solar PV flat panel array in the world at its 60 Wall Street Americas headquarters, issued a report that said, “...we expect solar electricity to become competitive with retail electricity in an increasing number of markets globally due to declining solar panel costs as well as improving financing and customer acquisition costs.”
Numerous top tier publications have predicted solar energy will become the least expensive form of energy generation by 2020.
Governments are doing their part in encouraging the solar movement. What could have been, if not the doom, but certainly a huge obstacle in the growth of solar was circumvented in December 2015 when the federal 30% corporate Investment Tax Credit (ITC) was extended through the end of 2019.
Closer to home, solar in New York State grew 575% between 2011-2014. Invested, literally and figuratively, in supporting solar installation, the New York State Energy Research and Development Authority has integrated all of its solar programs under one umbrella: NY-Sun. A commitment of $1 billion was made to propel and motivate the marketplace with an abundance of incentives, including financial support for public and private building installations. (NY-SUN.NY.GOV)
New York City has deferred to the state with regard to providing detailed information and incentives for installing solar in the city.
The City University of New York has, however, taken up a leadership position with its Sustainable CUNY program. Having launched its NYC Solar Map back in 2011, last month at the NY Solar Summit, they announced the design/build of a “comprehensive interactive website” (nysolarmap.com) that provides in-depth technical and financial feasibility information statewide.
Put in your address and the site will show you solar system size, payback period, yearly energy savings, total cost and net cost after incentives and taxes. You can “Get a Quote” or download a report. Can we say brilliant? Sustainable CUNY was supported by both the aforementioned NY-Sun program as well as the DOE’s SunShot Initiative, a nationwide collaborative effort with the goal of reducing the cost of solar electricity. The Solarmap even outlines opportunities for renters, investors and those without a roof that can sustain solar installation.
We do a lot of research for these articles and early on in doing so for this one, we came across a New York Times’ article from January 2008 entitled “(Solar) Power to the People Is Not So Easily Achieved.” It’s a wonderfully and amusingly written piece about the trials and tribulations of installing solar in a Washington Heights apartment building. Written only 8 years ago, it seems almost quaint based on the tremendous strides of the solar industry.
We believe there’s a solar installation heading your way. And with the help of government, institutions and your solar installation company/consultant, we also believe you’re going to be surprised about how much easier and less costly it’s going to be.
Steven Schleider, MAI, FRICS, LEED-AP BD + C, is president at Metropolitan Valuation Services, New York, N.Y.
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