Building Management Hawaii June/July 2013 - (Page 16)

Solar & More The Reality Of Exploring Solar What is the best PV option for you? By Josh Mason S olar in Hawaii has received no shortage of publicity in the past few years. In fact, it is quite possible that Hawaii’s energy industry has received more media attention in the last three years than in its entire history prior combined. As is to be expected, with such a fast growing, vibrant industry, there has been an unfortunate accompaniment of misinformation, misinterpretation and missed opportunities, especially when it comes to building owners/ developers, AOAOs and nonprofits. Wouldn’t it be great if someone simplified it so everyone could capitalize on their own solar opportunity? Well, that is what I’ve attempted to do for you here. There are four driving factors that fuel an exceptional and long-term benefit from a Solar PV solution: • Hawaii’s high energy costs • Aggressive state and federal tax incentives • Hawaii’s exceptional climate • The dropping cost of solar PV The last two factors have a simple, relatively uniform application to every person, business and organization in Hawaii. However, the first two factors often make the difference in understanding and capitalizing on the right PV solution for your property. Hawaii’s high energy costs impact everyone. These energy costs fuel the long-term savings and return to be achieved from installing a PV system, as you are replacing a higher priced energy from the utility with lower cost energy from your PV system. Best of all, with the purchase of a PV system, the cost of the energy is absorbed from day one and then essentially amortized out over the guaranteed productive life of the PV system (25 years-plus). This can be simply understood as buying 25-plus year’s worth of electricity today, but at a fraction of the cost. To put some numbers to it, a PV system built with quality, long-lasting, low-maintenance components, can pay itself back in less than 10 years with no tax incentives factored in, and zero assumed inflation of utility rates. In other words, in the worstcase scenario, a typical commercial PV system will generate 10 percent or more in return per year. While this has an attractive ring to it, especially considering the low risk nature of the investment, the real key is in understanding how it will achieve such a return in your specific situation. For AOAOs and building owners/developers, the easiest target is typically the common area maintenance (CAM) electricity costs. For an AOAO, savings on CAM are directly beneficial to the residents. However, for a building owner/ developer, it is often a less direct path to financial benefits of offsetting CAM electricity costs with PV, as tenant’s CAM charges can typically only be billed in accordance with actual expenses. The good news is that there are effective PV systems that can be easily implemented that directly benefit the owner/management, and one that can actually turn into a new cash flow stream. In addition, there are less direct benefits that come from installing a PV system, such as increasing your lease value due to lower operating costs for tenants, and a more controlled overhead future for your Oahu Country Club 16 June - July 2013 BMH www.buildingmanagementhawaii.com http://www.buildingmanagementhawaii.com

Table of Contents for the Digital Edition of Building Management Hawaii June/July 2013

Special Section: BIA Renaissance Awards
Solar & More - Made In The Shade
Solar Options For Condos
Beyond PV…The Power Of The Negawatts
Solar On The Highrise
On The Farm With PV
The Reality Of Exploring Solar
Steep-Slope Solar
Concrete & Asphalt - Fresh Surfaces for Work & Play
Pavement Maintenance 101
Asphalt Alternatives
Rocky Road
Pavement Preservation
Painting Top 5 Painting Tips
Painting & Exterior Finishes
Lead & Rules
On Site: Renting Delinquent Units

Building Management Hawaii June/July 2013