Installing solar paneling to the complex of your rooftops can be a very good financial decision. Rising electricity rates, generous incentives from the state and federal government, and an abundance of sunlight are all motivating apartment owners to switch over to solar power.

The investment in solar power can offer quick payback and long-term savings. It also provides your company protection against rising electric rates and the ability to forecast utility expenses far into the future. Marketing your building as having solar is paneling is typically very popular with current and prospective tenants.

A typical installed solar project will offer an initial annual return between 5% and 11%. As utility rates increase the annual return increases. Any excess solar power not used can be fed into the utility grid resulting in a credit to you from the utility company. State and federal tax credits have a net effect of a much higher annual return than 5% to11%!

1. Solar Panels
Solar panels mounted on the roof or grounds of your apartment complex convert sunlight into DC power.

2. Inverter
This power is sent to a device called an inverter (or power converter) which converts the DC power from the solar panels to AC power identical to that being sent to you from the utility grid.

3. Electrical Panel
Power travels from the inverter to your electrical service panel (your breaker box) where it is distributed to electrical loads throughout your complex.

4. Utility Grid
Excess power produced by the solar modules flows into the grid through your utility meter, causing your meter to run backwards and gaining you a credit with the utility company.

Net Metering
Net metering is an agreement between a utility company and you, the customer. The agreement states that the utility will credit your account for excess electricity you produce and feed into the utility grid.

If you choose to install a time-of-use meter you can be credited for power at different rates; peak rates and off peak rates. Rates are dependent on the time of day, day of the week, and month of the year. Peak periods are typically week day summer afternoons. When you send power to the utility grid during peak times, you will receive a credit at the higher, peak rate. When you draw on your credit at off peak times your account will be debited at off peak rates.

Most people will benefit by installing the time-of-use meter. Keep in mind that you will receive a credit from the utility when you are generating more power than you are using. If all of the power being produced by your solar energy system is immediately being used, your meter will not "spin backwards".

Federal Tax Credits
In addition to State rebates and incentives, the Federal government offers a 30% Federal tax credit on solar power systems, and allows businesses an accelerated depreciation schedule over 6 years. It was on October 3, 2008 that Congress approved a bill that extends the Federal 30% tax credit for solar.