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Massachusetts has consistently been a leader in the solar industry and has continued to be aggressive with its policy on renewable energy. However, they still have an overwhelming need to increase solar capacity and have been working hard to develop a policy that will support the state’s need for more solar projects while keeping industry and environmental groups happy. While policymakers have been working out a way to desperately increase capacity and expand their solar initiatives, there are still concerns about slow development, land use, and interconnection issues around the state. Land use is the most recent debate after limitations were criticized when the state announced them as part of the emergency revision to the SMART program in April. DOER announced the final rules Tuesday that would govern Massachusetts solar program, maintaining the increase in size but leaving in place some guidelines on land use that leave the industry wondering how it will affect development.  The SMART program emergency revision increased capacity from 1.6 gigawatts to 3.2 gigawatts; however, there were also some changes that included restrictions on three categories of land-critical natural landscape, core habitat, and priority habitat.The final regulations decided on Tuesday that the state will relax some of the land use categories that some say were overly restrictive. Industry leaders say these portions of land cover a significant portion of the state, and would make many projects ineligible for program benefits under the state’s recent expansion. This week’s final ruling lifted the restrictions on critical natural landscape for solar projects that are already underway as part of the newly expanded 1.6 gigawatt program. The industry is happy with the results that strike  “a balance between protecting key endangered species habitats and continuing clean energy development”.  Many developers are interested in spurring growth through solar farms, or ground mount solar projects. It’s an excellent investment for the landowner, allowing the landowner to use previously underutilized land to produce energy for the utility while collecting a new revenue stream. Studies also show that it benefits the land to lie fallow and regenerate, and more developers are implementing pollinator friendly solar projects with the goal of protecting the agriculture around the solar project. The utility, the industry, and the landowner benefit from this type of development. It is also less expensive to develop solar projects on greenfields, making them preferable for most developers. So what is the cost of protecting our renewable energy goals versus protecting our land? Some say that DOER’s previous new SMART rules would keep the status quo, harm prospects for quick renewable development, fail to help farmers, and risk throwing away 475 megawatts of projects, jobs, and tax revenue. In public comments submitted on the changes, farmers, developers, and some state lawmakers asked DOER to approach land use guidance with a lighter hand. Environmentalists are asking the state to go further to conserve vulnerable land, while solar companies and industry leaders are asking for Massachusetts to protect its national leadership role in the solar industry.  Final guidelines struck a balance by keeping most land use restrictions in place but will also allow developers with projects underway to follow previous regulations if they had submitted an interconnection agreement within six months of the emergency regulations.  Developers and industry leaders both agree it’s time to protect our farmers and continue the development of ground mounted photovoltaic farms that can easily get to 100 percent renewables quickly and effectively to also meet state goals.  If you have questions on the recent updates to Massachusetts SMART program contact Althea Power at 860-814-4379 and we can walk you through the latest developments and how they will affect your decision to go solar. 

Have you considered putting solar onto your property but have questions about the process? Solar technology provides a clean, sustainable energy solution that complements other land uses, but  landowners have common concerns about “solar farms” before they are willing to take the next step.  THE TECHNOLOGY Many property owners do not realize that  solar farms are quiet, produce no emissions, and do not increase road traffic. Instead, they quietly go about generating energy for years to come, helping to power homes and businesses while providing a steady income for the landowner. The technology of Solar Photovoltaics (PV)  has been used in energy generation for decades and is quickly becoming the preferred technology of wholesale energy generators and utilities. The PV modules are fixed to steel racking and arranged to absorb the maximum amount of sunlight during daylight hours. Each of the PV modules converts sunlight into clean energy, which is then passed through electrical components, such as transformers and inverters, and injected onto the electrical utility grid. This produces clean renewable energy at a lower cost than existing utility rates.  COMMON QUESTIONS Common questions about the process and what to expect when entering into a solar project include safety, development, maintenance, and protection of the land. Here’s a breakdown of what to expect.: Safety– Landowners are often concerned about the safety component of installing a solar project. Will a solar array harm my land or my livestock? Do the panels emit harmful energy? Solar panels are an extremely safe technology and made of non toxic components. They don’t erode or cause emissions and they carry a strong warranty. This means they will be immediately disposed of and replaced if damaged. Tier 1 panels are used and certified by Bloomberg New Energy Finance (BNEF) for their stability and reliability. Development-Landowners want to know how they will be guided  through the development process while the project is being built. What are the steps of development and installation?  How much am I expected to help? A good solar installation firm  solar  will directly handle property diligence, design of the installation, zoning approvals, and interconnection permission. Property diligence includes doing the necessary environmental and legal diligence to ensure the site can host a project. Professional engineers will then design a system that uniquely fits your property. A team will then work with local and state agencies to obtain required permits, and experts will coordinate with the utility to ensure a seamless interconnection of the project to the electrical grid. Maintenance– Landowners want to know who is going to maintain the project and what it will entail. What if damage happens to the panels?  How will the land be groomed? Each site is maintained by the solar company for the lifetime of the project. There will be a professional crew for regular mowing and weed maintenance throughout the seasons. Each site has top of the line monitoring technology that informs the company in real time when any project is working sub optimally. Technicians will be scheduled and promptly sent out to fix or replace the equipment. Stewardship of the Land-This is one of the most important concerns for many landowners. They want to know their land is going to be protected during and after the solar project. Is there going to be any long-term damage to the soil?  How does the solar installation get removed? Solar projects can prove beneficial for the land, especially when sited on low producing areas of a farm property. This allows landowners to make a consistent income while allowing the land to lie fallow and regenerate over time. Studies have shown that allowing land to lie fallow can provide long term benefits such as raising the organic content level of the soil and improving its moisture holding capacity. The solar company is responsible for the complete removal of the solar installation at the end of the project life and returning the property to its original state. Are you interested in getting involved with a solar project on your land but want to learn more about the process? Contact Althea Power at 860-814-4379 and speak to one of our experts to answer all your questions so you have a thorough understanding of the process before making the move into solar. 

Government legislation is focused on increasing the viability of solar and working with utilities to create a sector that supports renewable energy and creates more jobs. Currently, we have time sensitive federal tax incentives that are advantageous for organizations to get involved in a solar project now, but they may not last. Let’s talk about the Federal Investment Tax Credit and what it does for companies purchasing a solar project right now. Companies can write off 26% of the total cost of their solar installation through a federal tax credit if installed before 2020.  The Investment Tax Credit (ITC) is a 26% tax credit for solar systems installed by December 31, 2020. However, remember that 2020 is the last year to qualify for this discount of 26%. The tax credit will then reduce incrementally each year until settling at 10% in 2022 and for future years. Companies are seeing the huge potential for savings on their power bills and understanding the imminent change in incentives, they are making moves sooner rather than later. If the tax credit decreases at the end of 2020, businesses will lose substantial financial benefits in write offs on their solar installation costs. However, there are new potential regulations on the horizon that may extend federal incentives existing thresholds and add new ones for as long as five more years. Last week, the House Ways and Means Committee introduced the Growing Renewable Energy and Efficiency Now (GREEN) Act as a part of the $1.5 trillion House infrastructure package released earlier last week. Although this act has not passed, it would equate to huge continued incentives for businesses to go solar. The bill includes direct pay and outlines a 5-year extension of the solar Investment Tax Credit (ITC) at 30% through 2025, followed by a two-year step down period. The step down would begin in 2026 at 26%, move to 22% in 2027 and then drop to 10% for commercial and utility-scale solar projects and 0% for residential solar in 2028. The legislation also creates an investment tax credit for energy storage and includes an additive measure that would increase the value of the ITC by 10% for companies that meet certain labor requirements. These regulatory proposals, if approved, will have a massive positive impact on the solar sector.  This is because the federal government understands that the solar industry has great potential for creating new jobs and helping to lead America’s recovery during this unprecedented time. However, they are not passed yet and as of now, the 26% tax credit is still time sensitive with only six months left to qualify. The ITC, together with other incentives, are currently an astronomical advantage for businesses and property owners when making the decision to go solar.  Contact Althea Power at 860-814-4379 to secure the federal tax incentives for your solar project and learn more about how they can save you money.

There are many incentives to go solar right now! Contact Althea Power to walk you through the latest enrollments for updated solar incentives state by state. The Connecticut deadline for ZREC applications is July 13th and Rhode Island is also about to open up their enrollment period for the RI Regrowth Program. Connecticut: If you are a commercial business don’t miss out on the lucrative investment opportunity to go solar in Connecticut right now! We are seeing peaked interest from businesses due to the new July 13th deadline for ZREC applications.  Remember these project applications are a lottery, so we are encouraging our clients to move quickly.. CT incentivizes commercial solar system owners through the use of Zero Emission Renewable Energy Credits also known as ZRECS.  ZREC projects can be small, medium, or large so if selected for the program, your solar project will have to meet state requirements based on number of kilowatts. Everytime your solar system produces 1 kilowatt hour of energy your company will earn one REC. This is an additional incentive to go solar on top of accelerated depreciation, energy savings, and the 26% federal tax credit that is scheduled to end in 2020. It’s free to apply so there is absolutely no downside to submitting your application. Rhode Island:  If you are a business in Rhode Island you can benefit from the commercial scale Renewable Energy Growth Program (REG). The Renewable Energy Growth (REG) Program supports the development of distributed generation projects in Rhode Island, and allocates 40 megawatts in specific technology and size classes. The program enables customers to sell their solar generation output under long-term tariffs at fixed prices. Each year the program is revised with new ceiling prices and megawatt allocation plans. Competitive enrollment periods happen three times per year and the latest enrollment begins 7/13/20 and ends 7/24/20. So,time is of the essence! Rhode Island is offering additional incentives for businesses to invest in solar carports, as there is an additional 6 cents per kilowatt available for qualifying solar capacity installed on permanent carport structures. All payments are guaranteed through a 20 year tariff and enrollment begins through a bidding program on 7/13/20. Don’t miss out on these extra incentives available to Rhode Island businesses in addition to federal and state programs.  Contact Althea Power at 860-814-4379 to have one of our experts go over all the incentives currently available in your state. 

In many parts of the world, solar panels are now producing electricity more efficiently than natural gas and coal. A few years ago, the recent drop in oil and gas prices due to COVID 19 might have increased the use of fossil fuels and hurt the renewable energy sector. Today, that is not the case. The renewable industry is running strong and businesses, schools, and nonprofits alike, are happy and healthily incentivized to go green to create a consistent and reliable revenue stream during these unpredictable times. Although the solar industry was affected by the initial impact of the lockdown, as were most sectors, the commercial industry is moving along strongly. Businesses and the solar industry as a whole have benefited from continued government efforts and policies to address climate change, while augmenting grid capacity. The policy push to support renewable energy has been consistent and has helped make the solar industry more resilient to economic swings, even with the hit from COVID 19. The recently opened bid for new projects under the Massachusetts SMART program is just one example.Overall, investors and businesses alike are eager to invest, even now, and they are creating some bonus incentives of their own to encourage rapid decision making under regulatory deadlines. Businesses want control and predictability, especially in our current market, and solar programs like PPAs and Lease packages are delivering. Solar investors have begun to flood the market with first year bonus offers of their own, in addition to the first year cash flow increases, sizable federal tax deductions and year one depreciation incentives.  More businesses are open to seeing the tax benefits they can receive along with the overall ROI, and it becomes clear that solar is a strong investment especially with the COVID shutdown slamming their revenues. So what makes a business, non profit, school, or landowner most suitable for solar during this time? All of these entities have a few things in common. They have a property space, a roof or land that is being underutilized, they support the green movement, and they are looking for a new revenue stream. Ideally, the property space, whether it be land, parking lot or rooftop, is relatively free from obstructions, zoning prohibitions, natural encroachments such as wetlands, and a relatively flat topography. Once developed, solar is a low-impact and quiet use that does not disrupt the surrounding community. Schools, universities, and hospitals are now benefitting in monumental ways without making cuts anywhere and without the need for securing grants or organizing fundraisers. A report in 2019 found Virginia schools tripling their adoption of solar power since 2017. This report is the latest resource to come out of Generation180, a nationwide effort to support and inspire the people that can make solar happen at schools. Liz Doerr, a Virginia school board member at Richmond Public schools stated in 2019 that “the big opportunity for us was that solar was a win, win, win—for our district’s budget, our students’ education, and our community’s transition to clean energy.” (Globenewswire, 2019) Depending on the business, a solar site can be developed rather quickly and owners will begin to see a return on their investment in as little as five months. On a solar site lease there is often no need for any upfront investment and solar developers are simply leasing the roof space from the business while the developer handles all the maintenance on the roof and of the system. This simply provides the business with an ancillary revenue stream. This is also true of parking lots which can utilize solar carports and brown lots which are ideal for solar farms.  It’s a very simple transaction for a business that turns their unused property from a previous liability, into an asset.  Learn more about how your organization can begin receiving the benefits of solar by contacting Althea Power: 860-814-4379 References

Solar panels have one job-to collect sunlight and transform it into electricity. However, they can only make that energy when the sun is shining. That’s why the ability to store solar energy for later use is important to exponentially growing the solar industry. Storage helps to keep the balance between electricity generation and demand. Lithium-ion batteries are one way to store this energy. These are the same batteries that power your phone. Energy storage continues to play an integral role in the solar industry and energy market as a whole, as policymakers are making decisions that will dictate how storage can be used. Growing electricity demand and the need for grid diversification are also factors that place increasing interest in battery storage.  As battery storage becomes more affordable, we have seen a positive shift in the solar industry. Electrochemical batteries have been around for more than 100 years and solar photovoltaic (PV) panels have been in use for some time now. According to Solar Energy Industry Associations (SEIA), in 2004 PV systems installed without batteries outnumbered battery-based systems and by 2010, solar-plus-storage systems were relegated to a small niche of the booming solar industry. But now, the industry is coming full circle.While there is certainly plenty of room for growth of stand-alone solar in most states, the long-term success of the solar industry and its ability to scale depends on the integration of battery storage. For distributed projects now and in the future, battery storage helps customers manage the move toward time-of-use (TOU) pricing and later TOU periods, and give system owners access to the power from their solar panels for more hours of the day. Today, many state and local governments incentivize energy storage on both sides of the meter with programs like California’s self generation incentive program (SGIP) and New York’s bulk storage incentives.  Although the payback with batteries is better in quite a few markets now, the financial payback of PV systems that include battery storage may be harder to justify than the direct grid models. However, batteries provide additional resilience and control for the system owner which are also intangible priorities to consumers and businesses. All of the industry signs point to the fact that storage is going to be part of most solar PV systems going forward. When the biggest names in solar get behind batteries including Sunrun, SunPower, and Tesla, their marketing, messaging and political influence increase awareness among consumers, businesses, and governments. Smaller competitors are interested in getting involved by including battery storage in their solar solutions in fear they will get left behind. Solar and storage have a natural “symbiotic relationship”. Ultimately, the wide-scale adoption of solar will lead to the wide-scale adoption of storage, which will in turn lead to more opportunities to deploy solar. To reach renewable energy goals, storage is playing an increasing role in providing power when the sun is not shining. Energy storage can smooth electricity prices through arbitrage, managing evening energy ramps, mitigating the risk of curtailment, providing backup power and more. Learn More about how Althea Power can help you decide if battery storage is right for your solar project: contact us at 860-814-4379.

Have you heard of pollinator friendly solar farms? As solar growth continues to rise, pollinators are giving landowners another reason to support renewable energy. Many landowners have owned their farm for generations and the importance of maintaining the resources of their land is at the forefront of their mind when they are considering a solar installation. It’s no secret that renewable energy from the sun is growing at an exponential rate and updated battery storage capacity is rising, too. With such a high level of growth it raises an important question. What can we do on an agricultural level to make sure we are protecting the land that we are utilizing with solar? Ultimately, regulators have answered that question with the evidence that we can spur agricultural growth right alongside solar. Pollinator friendly sites can ease this transition between the need for agricultural growth and the need for renewable energy from the utility, making landowner solar farms more attractive to the community. There are times when the land used for a solar farm needs to be transformed by grading, vegetation reduction, fencing and road construction. Although these are all still valid concerns for landowners, existing environmental impact regulations such as the National Environmental Policy Act (NEPA) have worked extremely hard to incentivize the maintenance and protection of the land surrounding the farms. We have seen this first hand through recent policy updates around the nation.  Massachusetts SMART program recently updated their program which, among other incentives, promotes pollinator friendly sites. We have also seen six states, led by Minnesota in 2016, implement state legislation to incentivize utilities that want to holistically reduce their ecological footprint. Simple actions to promote pollinator health alongside solar installations can make solar not only carbon-free but also beneficial to native ecosystems and the surrounding area’s agricultural economy.  In 2018, the Department of Energy’s National Laboratory did a research study and found that stable pollinator populations facilitated from pollinator friendly solar farms assisted in the pollination of nearby agricultural land, and ultimately boosted crop yields. This research has helped regulators which has also helped local energy providers such as Community Choice Aggregations (CCA), improve pollinator friendly practices in their solar farms. In February 2020, MCE in California became the first CCA to adopt pro-pollinator policies. Planting pollinator-friendly vegetation in solar farms provides multiple ecological and economic benefits to stakeholders. Using native plants as ground cover can help recharge groundwater, reduce erosion, and improve soil carbon sequestration. Solar investors also receive additional incentives from state utilities by installing beehives and bee colonies as part of their installations. Farmers in Minnesota have also seen economic benefits from leasing farmland to harvest the sun and installing pollinator-friendly solar farms.Even in states like Minnesota where agriculture is listed as their second largest economic sector, farmers have been losing money as degraded land and changing markets have made farming less profitable. This is where a solar site lease can make a lot of sense to local farmers, especially with the knowledge that their land will be protected. Farmers can let their land regenerate by lying  uncultivated under solar modules, while still making a profit.State and utility incentivizes are now, more than ever, encouraging farmers to prioritize land restoration over the long term, which pays off in healthier soil and higher crop yields. Overall, considering the options for a solar farm with these protections can assure farmers that they are not only increasing profitability, but protecting their assets and enhancing the resources on their land.  Speak to one of our experts and have a professional site walk of your land to see how a pollinator friendly solar installation can benefit your land, provide stable revenue for decades and let you, the landowner, steward your land with pride. Please contact Althea Power at 860-814-4379 to learn if pollinator protection is available for solar solutions in your state.

There are many different ways to finance a solar project installation. So what is the real difference between a ”solar site lease” and a “solar PPA” and what is the attraction to a solar site lease? Although they are very similar in practice, they do have one major difference, a solar site lease is a pretty straight forward transaction similar to a monthly rent payment. Leasing your unused space to a solar company to build an array on is a very efficient and low maintenance way to provide extra revenue while also promoting renewable energy. With a solar site lease, the solar company will pay you a fixed monthly “rent” payment that is calculated by the system size and electricity production. In exchange, you are being paid for the utility and the solar company to use your property for a term of about 25 years. The solar site lease gives a property owner additional revenue with no cash out of pocket. With a standard solar PPA, while still being a no cost option, you are purchasing the electricity produced by the system at a reduced rate compared to your particular electric bill. Eligibility for a solar site lease will vary with each specific project, but there are a few requirements that are generally needed with any lease. These include: If you are interested in learning more about an easy way to increase cash flow with a solar site lease please contact Althea Power at 860-814-4379 and one of our professionals can go over all your options.

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.