Notes from the Consultant’s Jungle

By- Bob Landström

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Solar Power Incentives from US Government

April 16th, 2010 · No Comments · Business, Data Center, Green Data Center, Green IT, Power

We’ve talked about wind power for data centers and mission critical facilities, and often the subject of solar power comes up in those same conversations.  Dedicated commercial solar installations generating more than a megawatt are rare, and as such have very limited contribution as an energy alternative for data centers.  There is growing interest though, in the implementation of solar generating capacity for a slightly different reason.

In the US, federal and state governments and utility companies are offering incentives for commercial solar installations.  In many cases, there are grants, tax credits, and other cash incentives to offset the cost of the equipment and installation.  Furthermore, many utilities are buying back the power generated from commercial solar generation at a premium over the cost of the service consumed.  This creates an opportunity to create a revenue stream from a solar implementation.  Since data centers often have a very large roof, it’s not too difficult to make a business case for installing solar generating capabilities not only to offset some of the utility power draw, but to create a bit of revenue on the side.  Indeed, a business case for ROI of less than four years with an annual rate of return greater than 12% is possible.

The website, Database of State Incentives for Renewables & Efficiency , is a great place to start to identify the programs available in your area.  So as a part of your Green strategy, take a different perspective on what solar power means to your facility.  Maybe there’s a creative way to make some money in the process.

New Jersey and California are certainly leading the way in terms of attractive incentives, but there are lots of other states in which a strong business case can be made.  If you’re considering a facility in the Southeast as a candidate for this, check out Inman Solar in Atlanta.  They have experience helping customers apply for the grants and navigate through the paper work necessary to make these installations successful.

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