Mainebiz

V O L . X X I N O. X I I J U N E 1 5 , 2 0 1 5 22 investment — 55% of which was off set by the combina- tion of a federal tax credit and the U.S. Department of Agriculture grant — will pay off in eight to 10 years. Given that the panels are expected to last 30 years, "it was a no-brainer," says Kleban, who launched the business with his brother Daniel and is based in Freeport. "You have to pay for electricity one way or the other. If anything can pay for itself and do the Earth, people and animals good, then you do it if you can aff ord to." Kleban is one of a small but growing legion of small business owners who — even in the absence of state incentives — is installing solar power, say- ing that it's never made more economic sense than it does now. Many are rushing to take advantage of lower prices, a federal tax credit and new USDA grant funding that take the sting out of the cost — which can be anywhere from $15,000 to $500,000. Last year was the biggest year on record for solar installation in Maine: systems generating 4.5 mega- watts were installed, up from 2.5 megawatts in 2013 and 1.7 megawatts in 2012, according to the Interstate Renewable Energy Council, or IREC, a Latham, N.Y.- based independent nonprofi t. While IREC does not break down what portion of those systems were installed by small businesses and no one tracks it, local solar industry professionals say interest has never been higher. "In the past, we've had to go and fi nd people," says Phil Coupe, co-founder of ReVision Energy, the largest solar installer in Maine. "As more systems go up, and there's more awareness and consciousness, we've had more people who came to us." Coupe estimates that they have installed up to 100 systems for local businesses, including Oakhurst Dairy, Rockport Marine, Black Dinah Chocolatiers, Coff ee By Design and L.L.Bean, plus institutions like Maine Audubon's Gilsland Farm headquarters. "We're defi nitely talking to more businesses this year," says Rob Taisey, owner of North Yarmouth- based Assured Solar Energy, which just fi nished its installation at Maine Beer's Freeport site. "Businesses like the idea of locking in energy costs. e price of sunlight doesn't go up and down." Many say that the solar power may have a contagious aspect to it. In fact a study published in the August 2014 issue of Journal of Economic Geography concluded that people are more likely to adopt solar if their neighbors make the switch. at said, this dynamic tends to be stronger in states like New Hampshire and Massachusetts where there are state incentives, says Coupe. e power of proximity is a key catalyst of the Solarize movement, a grass- roots eff ort to promote solar adoption, says Vaughn Woodruff , owner of Insource Renewables of Pittsfi eld. In February, Insource and Assured Solar Energy were selected by Freeport to launch Solarize Freeport, a community bulk purchasing program modeled on eff orts in Portland, Ore. e eff ort has spread to Vermont, Massachusetts and California. Residents pur- chase solar in bulk and lower the costs of installation by about 10%. In Freeport, 38 residents and one business have signed up so far, slightly exceeding their targets, Woodruff says, adding that he frequently gets inquiries from customers who have seen it elsewhere. "It is neighbors seeing how their neighbors buy and that being the trigger," Woodruff says. "And that happens on the business side too." Businesses look to bottom line ough small business owners say there is a feel-good factor with solar, the bottom line to their decisions was in fact the bottom line. e average price of an installed commercial solar system has dropped more than 50% since 2010, according to the Solar Energy Industries Association (SEIA), a Washington D.C.-based trade group. Still, some are rushing to take advantage of a 30% federal tax credit for solar installations, which is set to be reduced to 10% in January 2017. Some solar systems are eligible for fi ve-year accelerated depreciation if claimed as a business expense. In January, the Maine offi ce of the USDA expanded eligibility for its Rural Energy for America Program (REAP), which off ers grants for up to 25% of the cost of renewable energy systems and energy effi - ciency projects. It widened the geographic boundar- ies of eligibility to encompass 12 communities in close proximity to Portland, including Freeport, Yarmouth, Cumberland, Windham, Gorham, Saco, Old Orchard Beach and Biddeford, as well as rural areas in Falmouth, Westbrook, Scarborough and Cape Elizabeth. "We have more solar project applications now than we ever have," says Virginia Manuel, state director of the USDA Rural Development program. "It's really growing in popularity." is year, there's $1.25 million available for REAP grants. Federal programs are especially important since, currently, there are no state-level incentives in Maine. Rebates of up to $4,000 for commercial solar projects ended in 2013. However, the Joint Committee on Energy, Utilities and Technology did vote on a resolve P H O T O / P E T E R VA N A L L E N Businesses warm to solar energy Tax credits and USDA grants put investment within reach b y j e n n i F e r V a n a L L e n F O C U S Maine Beer Co. in Freeport recently added 212 solar panels to its roof and on two 'trackers.' A federal tax credit and a USDA grant helped make the $200,000 system more affordable. Rob Taisey, the contractor that installed the system, says of solar energy: "The price of sunlight doesn't go up and down." » C O N T I N U E D F R O M C O V E R

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