Non Profits lack the tax liability that makes the 30% FITC credit a feasible component of the ROI for a large scale solar project. The Inflation Reduction Act has promised that soon Non-Profits will be eligible for a 30% Direct Pay incentive but how this will function has not be laid out yet. 

This single most important factor to your business’s ROI for solar. Every utility has different rate structures that influence how you pay for your energy. Solar can influence these rates in a lot of different ways: either shaving your demand charges or dropping you into an entirely new rate structure. Establishing where you are at in your utilities rates and how solar can impact them is where Arch comes in.  

If your business or organization does not have the tax liability to cover the FITC for 30% of the system cost then you will not be able to take advantage of that benefit and so will have a significantly longer ROI.  

Roof mounted solar often the cheaper and easier option from a business perspective as it occupies previously unused space. But height, roof pitch, and roof material can all have an impact on the difficulty of installation and corresponding cost. A ground might could be a simpler install and offer more flexibility in array configuration which can increase ROI. However, distance from the interconnection point (usually a CT cabinet or Transformer), grading concerns, and trenching costs, can all negatively impact ROI. 

There are many roof variables that impact costs. Roof access, ease of movement, safety, and height to name a few. A flat roof with ample room to move and easy access via a lift to bring up materials is going to be cheaper than a metal pitched roof with no access points to transport materials.  

Every municipality will have a different permitting process and associated costs that can vary dramatically. Similarly, each utility has a different process for connecting solar to their energy gird, which can also come with a wide variation in costs.  

Solar energy systems need to connect to your existing electrical service. Your ROI can be impacted by how difficult this interconnection is and if there needs to be any upgrades before the solar can be connected.  

What your business is looking to achieve with solar is a key factor in ROI. Some businesses are looking to meet sustainability requirements and therefore have a specific offset in mind. Some companies are looking for a marketing value add. Others may have serious energy consumption that they need to find a solution for. Each of these different scenarios would have a different system design and sizing process.  

If there needs to be substantial grading or earthworks done as a part of your project that can add a significant cost to your project that is not related to the solar directly. Your installation partner should work with you to assess if there are any local ordinances or environmental factors that would require such work for a solar project to take place.