Long Island Power Authority
NYS.gov
News Center Company Clean Residential Customers Commercial Customers Islandwide Community Customer Care My Account
CEI CEI

PV in Commercial Buildings

Concern for the environment is becoming more prominent in day-to-day business and purchasing decisions. Customers and clients often consider businesses that demonstrate a commitment to environmental protection more favorably. One of the ways to show your commitment to a cleaner, more sustainable future is through the use of solar energy at your facility. The visibility of a well-designed solar energy system can send a powerful message to your customers that you are supporting efforts to improve the environment on Long Island.

PV systems are environmentally attractive because they produce clean energy, but they are also aesthetically pleasing and can provide economic benefits as well. PV incorporated as a building element is the only architectural feature that can provide a payback by generating electricity.

The word photovoltaic means producing electricity directly from sunlight. It does this without creating any pollution. Photovoltaics are referred to as PV or solar cells.

PV cells are made of a semi-conductor material. When light enters the cell, some of the photons from the light are absorbed by the semiconductor atoms, freeing electrons to flow through an external circuit and back into the cell. This flow of electrons produces electric current.

Business owners and commercial users are uniquely positioned to capitalize on the other important factors:

  • PV’s electrical output matches patterns of energy use in commercial buildings, promoting effective management of electricity demand.
  • PV applications are now being integrated directly into building roofs, walls and surrounding spaces; and these technologies are evolving rapidly.
  • Business-owned PV systems are eligible for tax advantages, such as accelerated depreciation and a ten percent Federal income tax credit.
  • Investing in renewable energy send the message that you care. The environmental benefits are realized both at your commercial building and in the global community. Renewable energy can help reduce the nation’s reliance on foreign energy suppliers.

Rebates and Incentives for Commercial PV Applications
LIPA is helping its customers harness the power of the sun by offering financial incentives to encourage the use of solar power, In addition to LIPA’s incentives, a Federal Tax Credit Program is also available.

LIPA’s Solar Pioneer Program Rebate
For commercial grid connected PV systems, LIPA’s rebate is $3.50/watt, with a maximum rebate of $35,000 (up to 10kW) per PV installation.

Investment Tax Credit for Solar Energy Property
Commercial customers can also take advantage of the business energy tax credit, which has permanently been extended as part of the passage of the Energy Policy Act of 1992. Anyone who invests in or purchases qualified solar energy property can take the credit, up to 10% of the investment or purchase and installation amount, when income tax forms are filed. Solar energy property is defined as equipment that uses solar energy to generate electricity to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Only commercial entities can take the credit.  Investment Tax Credit

Energy Efficiency First
As always, when you consider incorporating renewable energy features, you should first be sure that the building is energy efficient. Other equipment such as lighting, air conditioning systems and motors, should be evaluated to see if cost-effective, energy-efficient alternatives are available. This makes a good complement to the use of renewable energy in reducing power consumption or shaving peak electric demand.

PV as Architectural Features
Building integrated PV, that is, photovoltaic applications that are built into the building’s structure, offer a range of dynamic opportunities for design in energy systems for buildings. PV power is now built into roofing shingles and tiles that are both functional and easy to install. PV awnings and carports can be added to commercial buildings to capture the sun’s energy while providing shade from its heat. All this ads up to one solid fact: PV and commercial buildings are a natural match.

Types of PV Applications
PV can be applied in several different ways:

  • Non-dispatchable PV systems generate power whenever there is daylight. When the power is supplied to the building there is only coincidental demand savings.
  • Dispatchable PV systems utilize a portion of the solar resource to charge batteries. The energy stored in the batteries can then deliver power to the building’s electrical system or the grid whenever it is of greatest value.
  • Uninterruptible power from the energy stored in the batteries can also be to provide power to critical equipment such a phones, security systems, and emergency lighting.

When energy is not needed from the batteries, the full output of the PV array will help to displace electric power from the utility system.

LIPA Commercial/Industrial Customers wishing to contract with LIPA for parallel operation of their photovoltaic systems will need to complete LIPA's Commercial/Industrial Photovoltaic PV Program Application The installed PV system must be 300 Kilovolt-Amperes or less.

Costs
A standard commercial, grid-connected PV system, installed, costs approximately $7,500 per kW. Costs will depend on your system’s configuration, your equipment options and other factors. Remember, LIPA’s current Solar Pioneer incentives and the Federal Tax Credit Program can reduce the overall costs of installing a PV system.

For more information, contact LIPA’s Energy Infoline at 1-800-692-2626

 

Last Updated: 03/21/2008