Powering Up Green… Rooftop Solar Power Generation, Remember, It’s A Three-Part, Sustainable Equation

June 9, 2010 – Vol.15 No.12

Powering Up Green… Rooftop Solar Power Generation
Remember, It’s A Three-Part, Sustainable Equation
by Gary Kassem, President and CEO, SingleSource

You don’t have to look too far to see that the shift to clean, green power is taking a firm hold. In fact, it’s a change you simply can’t ignore. Within the past five years, more and more owners of commercial, retail and industrial facilities have started viewing their large-scale flat roof surfaces as assets instead of liabilities, and are seeing the potential benefits and returns that can come from installing rooftop solar power generation systems. It’s clearly a new direction for organizations that were previously dependent upon electricity generated from traditional sources such as coal and natural gas which are becoming increasingly subject to increased price volatility due to fuel price fluctuations and pending carbon legislation.

Significantly more advanced and much less costly than the solar power generation systems that emerged in mid to late 1970s after the Arab oil embargo, today’s low-profile, highly efficient rooftop solar power generation systems are reinforcing the sustainability efforts of organizations large and small. Couple that environmentally responsible mindset with substantial government incentives that encourage the development of solar energy generation resources – and growing interest from both investors and business leaders – and you have the emergence of a new, green industry with the potential for long-term ROI that just can’t be ignored.

That, however, is only the beginning of the story. While solar developers are aggressively pursuing potential customers in the marketplace, utilities that traditionally relied on conventional resources for power generation are becoming more interested in solar generated power and roof-mounted photovoltaic array (PV) systems. Across the country, solar development firms are installing PV systems and selling power directly to building owners. These firms are also renting roof surfaces from building owners, constructing solar power plants and selling power to local power companies. In both scenarios, building owners benefit directly by having a dependable source of power on site. In the second situation, utility companies effectively supplement their generation capacity and meet their renewable energy portfolio objectives without incurring the capital expenditures needed to build new generation and transmission facilities using traditional technology.

The Green Realities – It’s A Three-Part Equation

While the concept of rooftop solar power generation can sound appealing to the uninitiated, it’s serious business for building owners and other stakeholders. Anyone considering installation of a PV system needs to look beyond the green rhetoric and realize that green power comes with a number of financial realities and long-term commitments.

To begin with, while government incentives and financing arrangements can make the installation of a PV system extremely attractive to building owners, they tend to dry up quickly the longer you wait to get involved. To get the most lucrative deals, it really does pay to get on board early.

Next, many of today’s PV systems have anticipated lifespans of between 30 and 40 years. The roof systems on most retail, commercial or industrial buildings only have – on average – anticipated lifespans of 10 to 13 years. Some roofs may occasionally last as long as 15 or 20 years – half the lifespan of the PV system. The installation of a PV system on an existing roof typically results in added foot traffic, additional heat exposure and new precipitation patterns that can compromise drainage and accelerate the aging of the roof surface. These facts make it a certainty that roof repair and replacement will need to happen periodically throughout the lifespan of the PV system. This being the case, you need to have a plan in place to deal with these contingencies when you get involved with a PV system – not when a problem crops up, later.

Finally, nearly all financing agreements typically require that there be a constant feed of power from the PV systems. If power production is interrupted – for reasons such as equipment failure, system maintenance or roof repair, building or PV system owners can face significant penalties until the flow of power is restored. This can become a costly proposition, particularly if significant system repairs or roof replacement can’t be done quickly. If the PV system on your roof isn’t generating power, any profits the system earned could be quickly wiped out and replaced with literally millions of dollars in penalties.

Ignoring any of these three key areas can quickly turn the green potential and sustainability appeal of solar power generation into an extremely dark, cold and costly liability.

What To Consider Before Committing

Before forging ahead to have PV systems installed on their buildings, property owners should carefully review every phase of the project with objective professionals who understand rooftop solar power generation and who are experienced in installing, managing and maintaining a variety of rooftop assets.

You need to check the credentials of your solar developer, and be sure to deal with a company that works with well-known brands that have solid track records. Since it is easy to manipulate financial models and financing arrangements, be certain to have experienced financial professionals examine all documents involved with the transaction before you sign anything.

Performance expectations for the PV system also need to be a central concern for the building owner. Beyond dictating the size and configuration of the PV installation, these expectations will be used as the basis for developing mandated power generation quotas, PPAs and financing agreements. To arrive at realistic systems expectations, it’s critical to work with an experienced system designer who understands your goals, as well as the requirements and realities of the marketplace.

After determining the performance goals for a potential PV system, it’s essential to know what the total cost of ownership will be before you make any binding commitments. Remember, many PV systems may last between 30 and 40 years and will need regular cleaning, maintenance and repair throughout that time period. You need to be certain that the returns generated through PPAs and financing agreements will consistently exceed the costs associated with ownership.

Once you’ve zeroed in on the performance expectations and anticipated costs for your PV system, attention needs to be focused on your roof surface and the installation practices for the system itself. Since there are many firms out there that don’t know the first thing about equipment installation or long-term ownership, it’s important to find an asset management professional with expertise in roofing and PV systems, as well as experience in coordinating both installation and maintenance. Be sure to engage someone who can assess the condition of your existing roof systems, predict when your roof will fail and pinpoint how failure will occur. Ultimately, you want to work with a professional who can extend the lifespan of your current roof surface or design a new solar-ready roofing system that will last the required 30 to 40 years.

Beyond that, your asset management professional should interface with the PV system supplier to determine how the racking systems that hold the panels will attach to the roof structure, and how easily they can be moved to perform repairs and service on the roof. Specifically, you will need a troubleshooting plan that outlines how problems with the roof surface or the PV system will be addressed and who will be responsible for providing specific services. You also need to have a handle on the costs involved with troubleshooting, as well as a clear picture of who is responsible for covering any repair or service expenses.

Take The Smart Approach To Becoming More Green

Without a doubt, rooftop solar power generation can be an excellent way to do the right thing for the environment while reinforcing the sustainability efforts of your organization over the long term. By doing your background research now – and knowing that a commitment to solar power generation really entails multiple commitments, you position yourself to capture the potential benefits of green power generation while potentially avoiding situations that could cost you dearly in the future.

Contact:

Gary Kassem
gkassem(at)singlesourceroofing.com

Links:

SingleSource
http://www.singlesourceroofing.com/home.html

SingleSource is headquartered in North Fayette Township , just outside Pittsburgh , Pennsylvania, and is a leading designer of solar ready and traditional roofing systems. SingleSource is the only resource that can handle Photovoltaic Arrays (PV) installation, ongoing roof maintenance, finance and the true cost of ownership, as well as issues related to third party ownership (PPA type) and the inherent conflicts of interest. The company utilizes time-tested technologies and rigorous performance standards to ensure the best possible solutions at the lowest possible price for its customers. SingleSource provides custom cost-effective and comprehensive solutions to the roofing needs of clients throughout the United States .