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The state ranks as the national leader for residential and community solar and has installed more than 2.5 gigawatts of solar to date, but recent projects have been slowed by interconnection and policy changes. New solar installations dropped 50% in Massachusetts last year alone. In October 2019, regulators in favor of renewable energy questioned the utilities ability to meet demand. Regulators opened an investigation into National Grid’s handling of the SMART solar program, which has led to 1 gigawatt of projects being put on hold after many of them were given utility approval. In recent updates, industry groups were pushing for an even larger spur for growth to meet demand at 4.8 gigawatts. Massachusetts Department of Energy Resources unveiled emergency revisions designed to spur small and medium scale solar projects in April that doubled the capacity of the state incentive program. The SMART program increased from 1.6 gigawatts to 3.2 gigawatts, a change long sought after by the solar industry with interconnection overload in Massachusetts and the recent COVID 19 lockdown. Since March 1, “the industry” has shed more than 6000 jobs and these changes to the SMART program are meant to help stabilize the solar industry, with a focus on certain projects they want to promote. Aside from the increase in capacity, the SMART emergency regulations change many other details of the program including set aside capacity and subtractors. Massachusetts has worked to encourage projects located on brownfields or landfills and in its program revisions, “the state added additional incentives for projects that include pollinator habitat and a subtractor for greenfields”. Any portion of a project site that does not qualify for category 1 land use-agricultural, floating, and building mounted facilities-is subject to a “greenfield” compensation subtraction further discouraging the development of large ground mount projects on previously undeveloped land.  They also initiated a set aside capacity for low income customers. At least 5% of each block is reserved for projects that serve either low or moderate income housing or community solar projects with at least 50% low income customers. There is also a block for small and medium sized projects. At least one fifth of each block will be carved out for projects between 25-500KW, leaving a maximum percentage of 60% for projects over 500KW. This program extension cannot come fast enough for Massachusetts while the solar industry weathered the storm of COVID 19 shutdowns. In recognition of these impacts, DOER has also voluntarily provided a six month extension of SMART statement of qualification end dates for any applications submitted prior to July 1, 2020.  To help sort out which requirements and incentives may apply to your property for a solar installation, call our advisory team at (860)-814-4379.

Have you ever stopped in the middle of the street and said, “I wish someone would just hit me over the head with a million dollars?” Ya, we thought there would be a few of you who have. Fortunately, an investment in solar might do just that! As a solar developer we’ve starting exploring a brand new solar opportunity that may help you get that smacked over the head “million dollar” feeling. In the most recent Tax Cuts and Jobs Act of 2017, the federal government created a framework that has created a “money cannon” called Opportunity Zones.  The provision offers tax benefits to equity investors that put money into any of the 8,700 designated opportunity areas. So far, a lot of the attentions for Opportunity Zone Funds have been primarily focused on real estate, but we believe the market is overlooking the most natural fit of all the investments out there, Renewable Energy. Renewable energy developments, particularly solar, are long-term, place-based investments with predictable returns, that enhance a locations affordability and investment value. Projects have to pass the two tests that qualify a property for QOZ (qualified opportunity zone) funds. Althea Power is actively working on developing a number of small utility scale solar as well as community solar projects in QOZs across the United States, but there’s still a lack of understanding over how significant this opportunity truly is for the industry. If you’re an independent developer or you’re managing an opportunity zone fund looking to invest in solar projects, contact us [email protected].

Commercial solar makes great business sense even if you are a nonprofit. You can lower your current operating expenses, increase revenue, provide peace of mind against rising energy costs, and tap into the growing customer base that look for environmentally responsible vendors that are focused on sustainable energy strategies. Government & Utility incentives combined with recent decreases in equipment prices make the investment in solar a good financial decision for businesses, public agencies and nonprofits like schools or YMCAs. An investment in solar power can generate quick payback as well as long-term savings. Reduce operating costs Solar power systems can reduce or eliminate your business’s electric bill. Power purchase agreements are a great way to accomplish this goal without having to put up any capital. Hedge against changing utility rates As demand for energy rises and non-renewable resource pools shrink, the cost of energy goes up and events beyond your control can cause sudden short-term spikes in energy prices, putting unnecessary stress on your business. Installing your own solar power can reduce or eliminate your exposure to rising electricity rates. The portion of your energy usage that is generated by your solar system is no longer subject to short- or long-term increases in electricity rates. In fact, the more prices rise, the greater your savings will be. Become a green business Generating electricity from solar energy means your company uses less fossil fuel, reducing pollution and greenhouse gas emissions. By switching to solar power your company does its part to fight climate change and to reduce the country’s dependence of foreign energy sources. But the benefits go further – being a sustainable business can not only reduce your operating costs, but can also be a positive public relations and marketing tool. Research shows that a growing number of consumers make their buying decisions based on companies’ environmental responsibility. Contact us with any questions you might have, [email protected].

Though thousands of schools around the country have already taken advantage of the cost savings and many benefits which solar can provide, the opportunity is still generally underutilized. Schools have a unique advantage when it comes to solar energy because of the favorable building structures on each campus. The large, flat rooftops normally found on public, private, K-12 and university school buildings make many of these properties ideal candidates for rooftop solar or land based solar arrays. School parking lots can also be equipped with solar canopies, which can provide the added benefit of shade for parked cars, thus also saving on snow removal. Virtually any sufficiently sizeable rooftop and/or empty land spaces on school property can support small solar farms, which may further serve an extended community as well. The Department of Energy reports that taxpayers spend an average of $6 billion on energy costs for K-12 school buildings, more than what is spent on textbooks and computers combined and second only to teacher salaries. According to the National Center for Education Statistics (NCES), the average school building is roughly 42 years old and budgets are targeting improvements for these aging or decrepit facilities. Unfortunately, the amount of resulting energy inefficiencies at most schools creates an increase of 25% more energy consumption than what is needed. Offsetting a school’s electrical consumption with solar power can deliver a significant cost savings to schools and their districts. Over time, solar can serve as a hedge against the typical annual increases in utility rates. As a clean and renewable energy technology, solar has proven to reduce carbon emissions helping to protect human health and the environment. Among the environmental benefits, solar on schools can also surprisingly help to save water, as it uses a mere fraction of the water required to produce electricity than the conventional fossil fuel sources presently use. Most importantly, solar installations on schools can provide teachers with a unique opportunity to teach concepts in science, technology, engineering, and mathematics (STEM) and boost student interest in these critical subjects. Further, solar data acquisition systems allow schools to monitor the daily, weekly, monthly and annual production of a solar system in real time, thus providing valuable metrics on campus energy consumption. If your school is in the process of researching solar options, Althea Power can help guide you. Contact us today, [email protected]