2008 Woodie Awards
Solar Panels
Michael Lutkenhouse
Issue date: 9/14/06 Section: Campus News
- Page 1 of 1
Two years ago Stevens Institute of Technology was approached by Sun-Edison with a plan to place solar panels on top of the S.C Williams library as well as the Schaefer Center. At a cost of 2.4 million dollars, the project was not one to be taken lightly, even with the possibility of New Jersey footing up to 60 percent of the total install cost. With the possibility of putting Stevens on the map as an institute taking pro-active steps towards working with renewable energy, the project already looked attractive. However, when Sun-Edison offered to pay the entire install cost, including the cost of bonding the roofs and maintenance costs for 25 years, for the rights to control and resell the energy produced by these solar panels, the deal was sealed
With the current marketplace, energy companies and providers can be required to produce a certain amount of electricity through the use of renewable resources. If they cannot produce it themselves, they do have the option to buy it on what has become an open market for renewable energy credit. With demand remaining high for these credits and supply low, Sun-Edison is betting that they will be able to make money off the deal in the long run.
For Stevens, though, the contract allows the Institute to use whatever energy is produced there for its own purposes at a cost of 9 cents per kilowatt hour for the next 25 years. The credit for this energy used is what Sun-Edison turns around and sells for what is currently in the area of 20 cents per kilowatt hour.
The ability for Stevens to take this energy and use it rather then energy off the grid helps to reduce costs in more than one way. Electricity from the grid currently costs 9.4 cents per kilowatt hour enabling Stevens to already save .4 cents per kilowatt hour. The deal gets sweeter when one considers that history shows the costs per kilowatt hour steadily rises as the years go on but the cost to Stevens is locked in at 9 cents per kilowatt hour. With an estimated cost saving of $18,500 per year and investment cost to Stevens, it is easy to see the right choice was made.
With the current marketplace, energy companies and providers can be required to produce a certain amount of electricity through the use of renewable resources. If they cannot produce it themselves, they do have the option to buy it on what has become an open market for renewable energy credit. With demand remaining high for these credits and supply low, Sun-Edison is betting that they will be able to make money off the deal in the long run.
For Stevens, though, the contract allows the Institute to use whatever energy is produced there for its own purposes at a cost of 9 cents per kilowatt hour for the next 25 years. The credit for this energy used is what Sun-Edison turns around and sells for what is currently in the area of 20 cents per kilowatt hour.
The ability for Stevens to take this energy and use it rather then energy off the grid helps to reduce costs in more than one way. Electricity from the grid currently costs 9.4 cents per kilowatt hour enabling Stevens to already save .4 cents per kilowatt hour. The deal gets sweeter when one considers that history shows the costs per kilowatt hour steadily rises as the years go on but the cost to Stevens is locked in at 9 cents per kilowatt hour. With an estimated cost saving of $18,500 per year and investment cost to Stevens, it is easy to see the right choice was made.
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