For many commercial property owners, the roof is simply part of the building. But with the right solar strategy, unused rooftop space can become a long-term energy asset.
For Murray-Benjamin Electric Co.’s property at 397 West Ave. in Stamford, Connecticut, Smart Roofs Solar developed a preliminary In-Front-of-the-Meter (IFM) solar proposal built around a 215.3 kW-DC rooftop solar system.
Under the proposed IFM structure, the solar energy generated on the rooftop would be sold directly back to the electric utility at a contracted rate. The project analysis also incorporates potential federal and state incentives.
The project demonstrates how commercial solar can be evaluated not only as an energy solution, but as a potential long-term financial and environmental asset.
Available incentives may improve the economics of a commercial solar project, but timing matters. Federal tax rules have changed, Connecticut programs have their own application requirements, and eligibility depends on the details of each project.
That is why the best time to understand your options is before your business is ready to sign a contract.
Project at a Glance
The preliminary design includes:
- System Size: 215.3 kW-DC
- Inverter Capacity: 200.0 kW-AC
- Estimated Year 1 Solar Generation: 264,237 kWh
- Estimated Payback Period: 4.6 years
- Projected ROI: 113.8%
- Projected IRR: 15.2%
- PV Degradation Assumption: 0.50% annually
These figures are projections based on the assumptions used in the preliminary solar proposal and are not guaranteed results.
Why In-Front-of-the-Meter Solar?
Commercial solar does not always have to be designed simply to offset the electricity consumed inside a building.
With an In-Front-of-the-Meter solar system, the electricity produced can instead be sold directly back to the utility at a contracted rate.
For commercial property owners, that changes the conversation.
Instead of only asking:
“How much could solar reduce our electricity costs?”
Property owners can also ask:
“How much value could our unused roof space create?”
For properties with suitable rooftop space, IFM solar can provide another way to evaluate the long-term potential of the building.
The Financial Opportunity
The preliminary analysis projects a 4.6-year payback period, 113.8% ROI, 15.2% IRR, and approximately $785,132 in cumulative cash flow over the modeled project period.
The analysis also considers multiple sources of potential project value, including Solar REC income, federal tax incentives, and MACRS depreciation.
This is why evaluating commercial solar goes beyond looking at panels and electricity production.
Utility programs, available incentives, tax considerations, system performance, roof conditions, and the structure of the project can all influence its long-term economics.
The 20-Year Environmental Impact
The proposed system is estimated to generate 264,237 kWh of solar energy in Year 1. The proposal estimates that one year of production is environmentally equivalent to removing 40 vehicles from the road, growing 3,097 tree seedlings, and reducing the impact equivalent to 104 tons of coal burned.
Looking across 20 years, and applying the proposal’s 0.50% annual PV degradation assumption, the cumulative environmental impact would be approximately equivalent to:
760+ vehicles
removed from the road for one year
59,000+ tree seedlings
grown
1,980+ tons of coal
burned avoided
20-year equivalents are calculated from the proposal’s Year 1 environmental estimates while accounting for its stated 0.50% annual PV degradation assumption.
For businesses working toward sustainability goals, this illustrates how a commercial solar project can create value beyond its financial performance.
Every Commercial Property Requires a Different Solar Strategy
The Murray-Benjamin Electric Co. proposal highlights an important point: commercial solar is not one-size-fits-all.
Roof size and condition, utility programs, available incentives, system design, financing structure, and long-term business objectives can all affect which approach makes sense.
That is why a commercial solar project should begin with an evaluation of the property and its economics—not simply with a panel count.
For this Stamford property, the preliminary analysis identified an opportunity for a 215.3 kW-DC IFM solar system expected to generate more than 264,000 kWh in its first year.
Another commercial property may call for an entirely different strategy.
Could Your Commercial Roof Be an Energy Asset?
If your business owns a commercial property with unused rooftop space, it may be worth understanding what that space could do.
Smart Roofs helps commercial property owners evaluate solar opportunities based on the building, available programs, energy goals, and long-term project economics.
From rooftop suitability and system design to incentives and financial modeling, the goal is to determine whether commercial solar makes sense for the property before moving forward.
See what’s possible for your commercial property.
Contact Smart Roofs to start a commercial solar feasibility review.
