Morris County is going green in a big way. Buildings that are powered by renewable energy are on the rise in the area, bolstered by both environmental concerns and financial incentives alike.
Earlier this month, Bluebird Technologies in Rockaway Township held a ribbon-cutting ceremony to mark the installation of its new solar electric system. A few miles away in Rockaway Borough, Pine Street Commons is a couple of months in on reaping the savings rewards from its 1,500 solar panels
Owner Bob Fortunato said, “It feels good all around. The tenants feel good and as the landlord it feels good that I’m giving something back.”
In June, the Morris County Improvement Authority celebrated the start of construction on a 1.57-megawatt solar project at the William G. Mennen Sports Arena. Making this event all the more significant is that it is the first part of a 3.2-megawatt renewable energy program pilot which is being financed through what has been called “a landmark public-private solar development model, referred to as the ‘Morris Model,’” states a county press release.
Under the program, 19 public schools and county government buildings will be powered with solar energy. The driving force behind this is Wharton Mayor William Chegwidden who is also a Morris County Freeholder and a liaison to the Improvement Authority.
In the press release he is quoted, “The sun is shining on Morris County, and we have an ingenious model of solar financing to thank for capturing that energy. This ambitious project demonstrates a true feat of collaboration and innovation between the public and private sectors.”
Financing for the initiative comes from the Improvement Authority, with bonds guaranteed by the county and no debt service or expense to local entities. The debt will be retired by the solar energy provider Tioga Energy, Inc. of San Mateo, CA, which will sell the power generated back to the local entities at 10.6 cents a kilowatt hour, gain earned income tax credits, and will be able to take advantage of accelerated depreciation. Additionally, Tioga will be able to sell its energy credits, known as SRECs (Solar Renewable Energy Credits) to utility companies. One SREC equals one megawatt hour of power generated by solar.
The SRECs are the key to making solar energy more accessible because it has become a source of revenue for businesses and homeowners with solar panels.
How it works is that the electric companies buy the earned credit points. Under a state mandate, electric companies must produce 20 percent of their energy portfolio by renewable means, such as wind, hydro, and solar, or be fined. Most electric companies fall short of the 20 percent and are willing to buy the credits at about 90 to 95 percent of the rate of the fine. The price had been $713 per credit, but fell this year to $683.
Then, of course ,there is the actual energy savings that is making solar energy so attractive. The Morris County initiative is expected to bring an energy savings of more than $3.8 million for its participants.
Solar-powered schools
Within the next seven or eight months, solar energy systems will be installed at Boonton High School, the high school parking lot and the John Hill and School Street schools in the Boonton School District; Morris Knolls and Morris Hills high schools in the Morris Hills Regional School District; Mountain Lakes High School and the Wildwood School in the Mountain Lakes School District; the Brooklawn, Central, Littleton and Troy Hills schools in the Parsippany-Troy Hills School District; West Morris Central and West Morris Mendham high schools in the West Morris Regional High School District; the county government’s Schuyler Building and the building’s parking facility in Morristown; and the county Voter Machine Tech Center in Hanover.
Montville’s green team
Meanwhile, Montville Township has applied to the state to be recognized as a sustainable community. Township Committeewoman Deborah Nielson chairs the Sustainable Montville Committee which has been dubbed “The Green Team.” She said that they are looking at a “broad spectrum” of ways that the township can do better, including improving its recycling efforts.
A recent energy audit, which was underwritten by a grant, looked at all municipal buildings, except schools. It revealed that much of Montville is up to par with the only deficiency in the library due to its wall of windows. Informal discussions on how to correct the situation have included talk of installing solar panels. Nielson said it is all still in the planning stage, but “on the front burner, so to speak.”
Another way Montville Township is looking to be more green is by considering a change in the zoning ordinance that would encourage companies to include energy efficient designs, such as solar panels, into their site development.
The township is also home to the 1-year-old company, Freedom Energy Group, Inc. Co-founder Ron Soussa started the company for more reasons than simply an interest in renewable energy. A major factor is reflected in the company’s name; the desire to be free from dependency upon foreign energy.
Soussa, who is also involved in commercial real estate, learned much about the intricate details of solar energy while constructing his office building on Changebridge Road. In evaluating many solar contractors, he was discouraged to discover that they seemed to know less about solar installment than he; a fact that became more apparent when installers did not understand that roof set-up matters.
Soussa observed that the very details that make a building more interesting from an architectural view point can also be the features that interfere with solar energy.
“Shade is the enemy of the solar module,” he noted.
Soussa came out of this experience with the realization that at its heart, solar energy installation is a construction project. Calling his company “one-stop shopping,” Soussa said that they do it all, from roof work to installation to paper work. His partners bring to the company engineering and electrical experience.
Finding much demand for solar energy, Soussa said, “Basically everyone says yes because it makes sense.”
Back in Rockaway, Fortunato is more than happy with his decision to go solar. In the first month, he saved $4400 and in the second, $7400. A monitoring system in the building, which is part of the state qualifications, showed that in the nine weeks of operation, Pine Street Commons saved 9,489 gallons of gas and the equivalent of 668 60 watt bulbs for one year of eight hour daily use.
Fortunato said, “It is a huge savings of natural resources.”
Fortunato spent seven months researching solar energy and interviewed four companies. Installation of the panels began in November and the system was up and running by mid-April.
Along with energy savings, Fortunato also appreciates that his tax assessment value, according to state law, can not go up even though his building’s value has. However, as mentioned earlier, financing the $1.5 million project was difficult. Fortunato turned to TD Bank, which, he says now wants to be the leader in New Jersey for financing solar panels.
Bluebird Technologies president Angela Margolit explained what led her to installing 99 panels on her building’s roof, for which she used the Rockaway-based The Solar Center, Inc.
“What really got me thinking about going green was my oldest son going off to college at Colorado State University in Fort Collins. They are known as the ‘green university.’ Of course I went there for orientation and family weekend, and was really impressed with everything they were doing to ‘go green.’ Then with the energy crisis, the government started offering all of these great incentives. The icing on the cake was Solar Center being our customer, and I was following what they were [doing] with their business which was very interesting!”
By reducing Bluebird’s grid usage, the solar electric system, according to both companies, will help the environment by as much as what is equivalent to the “absorption of CO2 from planting 3.2 acres of trees or cutting back annual green house emissions from roughly taking three cars off of the road.”
Ed Steins, CEO of The Solar Center, Inc., said that his company has moved from being entirely residential to being a mix of residential and commercial due to the various laws and incentives that have boosted the appeal of going green among commercial establishments. A major customer has been Shop-Rite Supermarkets. The first was the Wharton store which had 1,666 panels installed in late 2008. Steins observed that this location alone makes more than $200,000 a year in SRECs.
As for residential use, New Jersey has the fastest payback time than any state in the country. “We’ve had tremendous amount of residential business this year,” said Steins.
There appears to be a shift in the mindset of customers. No longer is it only the homeowner, who Steins described as a “true believer.” Now, solar energy has entered the mass market. Steins said that while some customers were committed to being green at any cost, more people are equally attracted to the potential revenue from SRECs, which could amount to $5,000 annually.
Sweetening the residential incentive, the company is offering a community buying program for customers who get together as a group. The price had been around $9 a watt, but with the new campaign, the price drops to $5 a watt. According to Steins, the average-sized home requires 7,000 watts.
Steins observed that as his company is growing, the local economy is benefitting. Not only is his company hiring, but they are buying items from local suppliers.
With apologies to a certain amphibian celebrity, it is easy being green. The proof is all around Morris County. But for those still not convinced, Fortunato is extending an invitation to fellow business owners to tour his roof and he will happily answer any questions.
