New: Progress Energy Commercial Solar Incentive

As I outlined about a month ago, Progress Energy has recently expanded its solar rebate and incentive programs. Beyond a new residential solar rebate worth up to $2.00/watt, the North Carolina-based utility has launched a commercial solar program called SunSense Commercial Solar PV. Details on the incentive structure have recently been made available. Here.

In short, commercial, industrial and government customers of Progress Energy Carolinas are eligible to sign up for a production-based incentive. Here’s the rundown:

• Owners may receive a production-based renewable energy credit (REC) payment of 18 cents per kWh generated by the solar PV system
• To be eligible, systems must be rooftop-mounted and be between 10 kW and 250 kW (DC) in size
• The overall program limit is 5 mWs of installed PV capacity each year
• The application (PDF) is available for download here.

This is great news for South Carolina and North Carolina businesses that are looking to get solar. Well-structured REC payments provide consistent cash flow over time, ensuring that system owners are compensated for their initial cash outlay. Don’t forget that businesses may also take (1) a 30-percent federal solar tax credit, or (2) for commercial systems installed in 2009 and 2010, a 30-percent renewable energy grant from the Treasury. Read here for details.

Finally, it’s well worth mentioning that Progress Energy also sponsors a solar water heating program for businesses and other non-residential customers. (Residential customers, see my previous post.) Check out this additional info from Cape Fear Business News:

SunSense Commercial Solar Water Heating – Non-residential customers can receive incentives through this program for installing rooftop-mounted solar water heating systems ranging in size from 1,200 to 4,000 square feet of collector area (roughly 30 to 100 solar thermal panels). Customers must apply to participate in the program and, if approved, agree to sell all RECs from the system to Progress Energy for 10 years.

Participating customers will be required to install a thermal meter to record and report system output. The measured output will then be converted to a REC equivalent. Progress Energy will pay customers $20 per REC for all metered thermal energy.

Commercial solar water heating systems vary in cost based on system type and size. Customers should contact a solar installation professional to determine appropriate sizing, costs and potential benefits.

NOTE: A 25-percent tax credit is available in South Carolina for the installation of a solar water heating system, while North Carolina offers a 35-percent tax credit for that installation of solar water heat and solar PV. See our U.S. solar incentive map for details.

UPDATE: Progress Energy Carolinas is teaming up with Southern Energy and NxGen Power to build and operate a solar energy plant. The 1.3 megawatt solar array will be sited on Raleigh, NC-owned property at the Neuse River Wastewater Treatment Plant.