Like any formatted spreadsheet presentation, this should only be used as a mathematical analysis model, there are assumptions that just don't work when a true timeline is applied. For example, how can a 3.49 year payback period be accurately computed when it takes 5 years to fully apply accelerated deprecation?? But if you crunch the important real world numbers, installing a solar pv system is a solid investment for every New Hampshire business. Less expense = a stronger competitive position and higher profits for your company!
URGENT! Net metering in New Hampshire will be undergoing a BIG change as of September 1st. The current dollar for dollar net metering will be changed to net metering with roughly a 20% discount applied to the credit side. IE, the same unit of electricity you buy from your utility company for a dollar will only be worth ~80 cents when you send your excess solar production back into the grid. This will have a sizable effect on the long term cost of solar! There is still time to lock in and be grandfathered at the 1 fo 1 rate until 2040.
In addition, the current NHPUC rebate is figured at 65 cents per AC kWh. This will likely be reviewed once the PUC has received their new budget in the beginning of July. There may be a reduction in that rebate as well. This would create more of a short term impact, but it is still money left on the table. Don't be caught on the wrong side of the fence wishing you hadn't missed the opportunity to lock in...
Commercial installations are able to take advantage of two very beneficial advantages unavailable to the residential solar client; a much higher New Hampshire PUC rebate schedule and the ability to claim accelerated depreciation on their tax returns.
The PUC currently grants a rebate of $0.65 per watt on business installations less than 100 Kilowatts. This is a true gift to New Hampshire businesses that too many owners seem to be sadly unaware of!! The rebate is based on AC rather than DC kilowatts so there is a derating factor of about 5 % (depending on the inverter's efficiency). The rebate is not capped and can amount to a much greater figure than is available for a residential sale.
The spreadsheet below was prepared for a machinery sales and service center just outside of Concord. Note in particular the large deductions for the PUC rebate and the accellerated depreciation. Then note the cash payback period with the the SREC income applied. By applying all the incentives available,the same amount of funding that the business would pay out as monthly utility billing expenses will buy the asset of a solar installation in just 3.49 years. Why rent your power when you can own it!
Not every business has the upfront funding to spend as an initial lump payment so financing is usually a reality and even with interest cost added in and choosing to disregard the SREC income as "found" money, the payback period is less than five years! The Greensky monthly payment shown in the example below assumes that the business would be applying the PUC and 30% tax credit refund to reduce the loan principle as it is received. Note that the payment is less than the average monthly Unitil billing. This is copy of an actual proposal that was presented to a Concord area business owner in June 2017.