SOLAR POWER DIY, P.2

At Cabrini Terrace, the plan is to install a 50-kilowatt system. Dwyer says the board expects solar to power five to 10 percent of the building's needs. The price tag for the project starts at $370,000 — but the city's tax abatement, if approved, would reduce operating expenses and the next year's tax bill, and NYSERDA has approved $200,000 in incentives, which will be paid directly to the contractor, altPOWER. Dwyer expects the state tax credit to knock off another $42,500 in income taxes. He estimates his co-op's out-of-pocket cost will be under $100,000 — an amount he expects will be recouped by energy savings in about 10 years.

There are still a few additional quirks, he notes. Regulations prohibit the board from taking the federal solar tax credit on money that comes from financing via low-interest loans offered by NYSERDA. According to Dwyer, the federal tax credit can be used with a regular bank loan, just not an incentive loan.

Another quirk: when the building decided to go to a master meter system, Con Ed required that all the Con Ed-installed meters in each unit be ripped out so the contractor could install new meters that will be connected to the new master system. The master meter project is required for both the solar panel and the cogeneration projects because it segregates Con Ed's power that comes into the building from the power generated by those systems. "Why can't I just buy a master meter from Con Ed and buy their meters that are already in place?" Dwyer asks.

Despite the delays and complexity, Dwyer is optimistic and thrilled that work is scheduled to start on the project in the fall. "I want to see this through now," he says. Noting the 10-year payoff time and the fact that the PV system should last for about 25 years, he adds: "Who wouldn't do this deal?"

Adapted from Habitat September 2007. For the complete article and more, join our Archive >>