Larimer landlord sees solar energy as way to cut costs for tenants

Sep 28 - McClatchy-Tribune Content Agency, LLC - Diana Nelson Jones Pittsburgh Post-Gazette

Sept. 28--While renovating an old plumbing warehouse on Hamilton Avenue in Larimer five years ago, Craig Marcus began looking for tenants who would enliven the street.

"There were just auto parts warehouses," he said. "I wanted to bring the street some energy. It always shut down at 4 o'clock."

Some of the energy he has brought is saving two nonprofit tenants on their electricity bills.

An array of 54 solar panels on the roof of the building and 52 panels on a shed behind it are expected to pay for themselves in five to six years. Then, Mr. Marcus will be able to sell excess energy back to the power company while his tenants, GTECH Strategies and Grow Pittsburgh, get 70 percent of their electrical needs supplied by solar.

"I will be selling electricity to my tenants at a greatly reduced rate, about half" what they would pay otherwise, said Mr. Marcus, a founding member of the Larimer Consensus Group's Green Team.

Joe Morinville, president of EIS Solar, said a few developers have installed solar for residential projects, but Mr. Marcus, a woodworking craftsman, is one of a few non-residential landlords who have invested in solar panels and passed the savings along to tenants.

EIS Solar was looking for an opportunity to donate panels to a nonprofit, Mr. Morinville said, and one of its managers had found a grant from the Pennsylvania Energy Development Authority that would help increase the magnitude of the array.

Noting the environmental focus of the two nonprofits, he said the building was "a perfect match" for a solar demonstration.

The PEDA grant was directed at "a landlord setting up a power purchase agreement with tenants," Mr. Marcus said. "They are interested in us documenting our savings."

The system became active last month.

"We're not doing this to save the world but as proof of concept, to show other business owners the financial benefits," he said.

Earlier this month, Mr. Marcus threw a happy-hour open house to show the system to visitors.

"If this pays off in five or six years, I'll be the happiest guy around," he said. "After that, any money I make is profit and my tenants have more incentive to stay."

This project came with a 30 percent tax credit.

Mr. Morinville said the tax credits run through the end of next year, when the residential tax credit disappears and the commercial credit drops from 30 percent to 10 percent.

Mr. Marcus said he had wanted to renovate for energy savings in 2010, but the costs of bringing the building up to code pushed that idea out of his budget.

The electric meter on the roof of the main building corresponds to an app on Mr. Marcus's phone that shows a readout of how much carbon dioxide is being kept out of the air and how much he is saving.

"I made 30 cents today," he said. "Most important, we will keep 45 tons of carbon dioxide out of the air each year. That's the amount this building would otherwise put out. Maybe it's not a lot" compared to large companies, "but it's better than zero."

From the top of his building, he noted the panels on top of the shed. "That's 2,500 square feet of flat space being put to good use. ... Look around at all the flat roofs here. What tremendous potential."

Diana Nelson Jones: djones@post-gazette.com or 412-263-1626.

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