On June 1st of 2023 PECO introduced a new incentive program for PECO’s commercial and industrial customers to embrace solar energy. Along with recently enacted legislation that offers 30 – 70% federal tax credits for installing solar. This program introduces a PECO solar incentive of $0.10/kWh, which is based on the net solar kWh production over a one-year period. It’s worth noting that this incentive is capped at the project cost, allowing businesses to maximize their financial benefits while reducing electricity costs and increasing their ESG rating.
You might be wondering…
“That sounds great, but what steps do I need to take to understand if this incentive is financially significant enough to consider taking action on for my business?”
Step one is to obtain a recent PDF copy of your businesses utility bill. Step two involves finding a solar contractor in your area who will handle 90% of the workload. Once you identify and contact a local solar company like TerraSol Energies Inc., they will assist you in providing a scope of work with estimated project costs to PECO. They will also provide you with the manufacturers’ specification sheets for qualifying equipment and offer an estimation of energy savings. Lastly, they will secure your interconnection agreement.
You might then wonder
“How is the pre-approval amount for the incentive determined?”
The pre-approval amount is based on PVWatts, an online calculator developed by the National Renewable Energy Laboratory (NREL) in the United States. PVWatts is widely used to estimate the electricity generation potential of a photovoltaic (PV) system, commonly known as solar panels, at a specific location. PECO will estimate the amount of energy being fed back into the grid. The incentive is calculated based on a minimum measurement period of six months, including at least one month from June through August. If this sounds complex, don’t worry, as a local solar developer like TerraSol Energies will facilitate your interaction with PECO, automating the entire measurement and verification process.
The key takeaway
Taking action to explore this opportunity, you have the power to understand the potential savings for your organization by combining state, federal, and PECO incentives. Besides sending your PECO bill to your local solar developer, there are no costs associated with understanding your potential savings. The worst thing a business can do is remain unaware of the potential savings that can be achieved by switching to solar energy. In the words of Thomas Huxley, “Make up your mind to act decidedly and take the consequences. No good is ever done in this world by hesitation.”