FINANTA Installs Rooftop Solar Panels, Generates 100% of their Own Energy

Generocity.org: FINANTA Installs Rooftop Solar Panels, Generates 100% of their Own Energy

By Tara Nurin | Posted on Monday, July 16th, 2012
Generocity.org

The post-industrial urban landscape north of Old City has emerged as a harbinger of things to come — sustainable architecture, shared community space, locally brewed beer. Although the latest example of this trend-spotting ethos isn’t quite as visible from the street, it is, nevertheless, no less impactful.

In June, a nonprofit lending corporation called Finanta “flipped the switch” on a solar energy project that provides 100% of the electricity used at its headquarters at 1301 North Second Street.

The panels are made by Solar States, a progressive company that sits on the border of NoLibs and South Kensington, the largest provider of solar power purchase agreements in Center City. While the use of solar power by itself doesn’t constitute a news story, Solar States’ business model and its arrangement with Finanta does perhaps offer a glimpse into the next decade of renewable energy possibilities.

Adopting the relatively unique power-purchase agreement (PPA) approach, Solar States installed and maintains Finanta’s rooftop solar panels for free. In exchange, Solar States owns the energy it generates and sells it to Finanta at a discount. If Finanta doesn’t use all of the electricity it produces, Solar States will sell the surplus to the electric company. After a predetermined amount of time, Solar States will turn the panels – and the profits – over to Finanta.

But the story goes a little deeper.

Solar States financed the installation solely through a loan awarded by Finanta, which it will pay back with proceeds from selling the electricity and the surplus energy credits, plus grant money it received for providing Finanta with solar power. Specifically, Solar States received funding from a PA Sunshine grant, which provides the project with an average $.55 per watt installed, and the federal treasury department’s 1603 program that infused Solar States with cash worth 30% of the total installed cost in lieu of a tax credit. This is symbiosis in action.

With the installation of 120 solar panels and an equivalent number of microinverters, Finanta is expected to generate more than enough electricity for its needs, boast a zero-percent carbon footprint, and contribute to air quality in an amount equivalent to five acres of trees planted per year. Once its agreement with Solar States expires it will save $300-$500 per month by paying nothing for energy throughout the life of the array (estimated at more than 20 years) and will receive income from selling its energy credits.

It’s a model Finanta hopes will be copied by nonprofits across the city.

While Solar States CEO Micah Gold-Markel said he was thrilled with the sincere interest in environmental preservation expressed by Finanta’s executives throughout all phases of the project, he’s particularly passionate about two of its technical aspects: point-of-use generation and the use of microinverters to power the system.

“Generating energy right where it is used is by far the most efficient form of production,” he emailed. “There is no need for transmission lines, which are a huge eye sore on the American landscape, and it eases the stress on already over stressed energy grids.” Additionally, he said, there can be anywhere from 5% – 15% energy loss over transmission lines. Point-of-use energy loses up to 2%.

Gold-Markel concluded his final email by writing, “Creating urban energy is good for the environment, good for our communities and great for business owners.”

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