Home News Tribune - PSE&G Expo Sheds Light On Ways Homeowners Can Go Solar
By Erica Harbatkin

03/05/09 - Vincent Oliva isn't sure whether installing solar panels is a good investment for the commercial property he owns throughout the state, but he's hoping it will eventually save him money on energy costs.

"Ultimately (I'd like) to save on energy bills; to lower energy costs," Oliva said. "Lowering operating costs is the bottom line."

Oliva was among the hundreds of property owners who convened at the Hilton in Iselin this week for PSE&G's first Solar Expo.

PSE&G held the morning-long expo to educate property owners about its solar loan program, which finances 40 to 50 percent of the cost of solar panels. After the information session, business owners, representatives from municipalities and residential customers mingled with people from solar energy companies.

"We're hoping that people can get together and make deals," said Susanna Chiu, PSE&G's director of business development. "In this economy we're hoping to use the incentives in renewable energy to help get things going."

The solar loan program allows PSE&G customers to pay back their loans over 15 years using solar renewable energy certificates — clean energy credits issued by the state Board of Public Utilities for each megawatt of power generated. Under the PSE&G program, participants receive a minimum of $475 per certificate, but can receive more if the market price is higher. Each certificate has typically been selling for $300 to $500, Michael Winka, director of the state Office of Clean Energy, said earlier this year.

The Clean Energy Program was started in 2003 as the state began working toward increasing energy efficiency through renewable sources. Originally, the state encouraged the installation of renewable energy systems by offering tax credits, but has recently moved to the certificate program.

Solar panel installations have risen considerably since the state began offering incentives.

Phil Stone, a commercial energy consultant with GeoGenix, a 20-year-old Rumson-based renewable energy company, said he has seen that growth firsthand.

"Up until six years ago, there wasn't a lot going on with solar energy because there weren't any solar panels," said Stone, who was among the solar energy company representatives at the event. "In the last six years, when New Jersey started to program, the return on investment went down."

That return can vary depending on the output of the system, but the state average is about seven years, Winka said.

Before the state began offering incentives, GeoGenix barely sold any solar energy systems — now it accounts for most of the company's business.

"Electricity (cost) in New Jersey has doubled in the last seven years," Stone said. "When people used to pay the electricity bill it was a little bill, the cost of doing business. Now it's taking away from the bottom line."

Oliva, the property owner, said he looks into the prospect of solar power every few years, but he'll wait to make the investment until he's confident it's an economical decision.

"We've been looking at this for several years," he said. "I'm not sold on it. The installation and purchasing costs have come down a bit but they're extremely high. I'm not sure if the technology has peaked yet to substantiate several million dollars, and I don't know if the government loans have peaked yet either. It's something I'll continue to pursue."