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![]() by Staff Writers Manasquan NJ (SPX) Sep 10, 2013
Solis Partners is working with New Jersey commercial property owners to structure projects and prepare for the upcoming competitive PSE and G Solar Loan III solicitations. The $193 million Solar Loan program will fund 97.5 megawatts of solar over the next two to three years. PSE and G's first solicitation will likely be held in early October and the companies that successfully file in the early rounds can expect to be awarded attractive Solar Renewable Energy Certificate (SREC) pricing. SRECs are performance-based financial incentives that reward owners for the environmental benefits of the energy generated by their systems. "Solar remains a great investment in New Jersey because of the state's progressive financial incentives," said Jamie Hahn, principal of Solis Partners. "But the Solar Loan III program will revitalize the market for commercial solar in New Jersey by providing greater SREC market stability. As with many financial incentives, however, those who act fast will reap the biggest rewards." Manasquan, N.J.-based Solis Partners is a leading turnkey solar power and energy services provider. The firm has extensive experience working with commercial property owners on solar projects, including installations that were part of PSE and G's first two solar loan programs. "Property owners that previously had few options for project financing due to solar market conditions will now have greater access to capital," Hahn continued. "PSE and G's loan program provides an investment structure that hasn't been offered before and many believe it will be the key driver of future solar adoption in New Jersey over the next few years." PSE and G's program allows solar investors to pay for the systems through the sale of the SRECs. Fixed SREC prices are awarded via the competitive Solar Loan auctions and the highest prices are likely awarded to early bidders. SREC price certainty is welcome news for prospective solar owners because of the incentive market volatility of recent years. "This new round of loans will mitigate the volatility by offering project owners fixed prices for the SRECs that the system produces over the 10-year term of the loan," said Hahn. "This significantly de-risks the investment by securing a key revenue stream, so now is the time for building owners and third-party investors who have debated the economic viability of solar assets in New Jersey to re-enter the market." Solis provides guidance to new businesses considering the Solar Loan program from the initial loan application process and planning stages to the final installation and operation of the solar system. As a turkey provider, the company offers system design, financial structuring and material procurement to installation, project management, commissioning and production monitoring services. Property owners that do not want to directly invest in solar can still realize the benefits of on-site renewable generation through a solar power purchase agreement (PPA). A PPA is a financing model in which a solar system is owned and operated by a third party that sells the power back to the "host" at a discounted rate. The benefit of this established model is the elimination of any capital expenditure by the property owner. However, PPAs typically require a 15 to 20 year time horizon and are reserved for larger projects of approximately 750 kW or greater. The contracted SREC prices offered through the Solar Loan III program will give third-party investors the confidence that smaller commercial solar systems are a profitable asset class, especially when federal incentives, including the Investment Tax Credit and accelerated depreciation, and the reduced cost of solar systems are taken into consideration. "With robust federal incentives and the reduction in the cost of solar panels, the future of the solar industry looks extremely bright," said Hahn. "With the Solar Loan III program, New Jersey should continue its position as a global leader in commercial solar installations.
Related Links Solis Partners All About Solar Energy at SolarDaily.com
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