Irvine-based solar solutions provider ecoSolargy has installed a 63.75-kW solar system on the roof of the headquarters of MGM Plastics, a San Marcos, Calif., company that performs plastic fabrication and machining services. The 209 X 305W ecoSolargy Titan 1000 modules with four Solectria inverters will offset 85% of MGM Plastics’ electricity costs over the next 25 years.
“With generous government incentives available, companies such as MGM Plastics are finding that solar systems can be installed inexpensively and will dramatically reduce their monthly electricity bills,” said Alan H. Lee, CEO of ecoSolargy. Lee estimated that MGM Plastics would save $25,000 in its first year, and increasing amounts in following years as electricity costs increased.
Incentives include the solar Investment Tax Credit (ITC), which gives a 30% tax credit to companies which purchase solar systems. The ITC was recently extended to 2019, and then will gradually decline to 10% in 2022.
Other tax incentives that can be combined with the 30% ITC include the Modified Accelerated Cost Recovery System (MACRS), which allows a company to depreciate the system over 5 years, as opposed to the traditional 20 years. The ITC and MACRS together can pay for over 60% of the cost of installing a solar system. That is over 60% of the system cost recovered without even factoring savings on the utility bill.
Lee continued, “These companies are also pleased to be making a positive contribution to the environment, as solar energy is clean energy and does not pollute.”
Martin Brix, Director of Commercial PV at ecoSolargy, noted that the MGM Plastics solar system was designed to address its specific energy needs. The project began with an extensive energy study which outlined how and when the energy was being consumed.
He said, “It’s not always about offsetting the entire electricity usage of a client, but about finding the proper balance between use and expense. Our goal is to create a solution that optimizes energy production benefits and minimizes cost.”
Brix noted that ecoSolargy was working on other commercial projects throughout Southern California.