Elmo Homes wanted to install solar on their co-op’s rooftop.
They needed tax incentives and credits to make the investment make sense financially. These benefits are typically available for single family homes not multi-unit co-ops.
NYCEEC provided an innovative $186,000 loan that allowed the building to take advantage of tax incentives and credits.
- Project type: Solar installation
- Total project cost: $200,000
- Financial product: Direct loan
- NYCEEC role: $186,000
THE CLIENT CHALLENGE
Elmo Homes is a self-managed 24-unit co-op building. The owners wanted to purchase and install rooftop solar to generate electricity onsite and lower greenhouse gas emissions. But the investment only made sense financially if the individual owners took advantage of available federal, state, and local tax credits and incentives typically designed for single family homes or large commercial buildings.
THE NYCEEC SOLUTION
Project developer, Zero Carbon, partnered with the NYCEEC to create an integrated technology and finance solution, including a 30.7 kW photovoltaic system and a new metering system capable of aggregating usage data from each housing unit, all with no upfront cost to the co-op association. NYCEEC’s innovative financing solution covered the project cost, utilizing the centralized metering system to take advantage of federal, state, local, and utility incentives. In the first two years, every shareholder will receive individual tax credits, some of which will be paid to the co-op association to pay off their personal share of the loan. In years three to ten, the remainder of the loan will be paid from savings associated with the solar panels and submetering.
Zero Carbon projects that the system will produce 94% of the building’s typical annual electricity use. Net metering will allow the building to sell back to the grid the excess power it generates during the day. The result will be annual cost savings of $10,992, more than enough to cover the payments during the period of the loan, and to benefit the co-op owners once the loan is paid off.
Solar PV panels and sub-metering