Benefits

• New Jersey electrical rate "caps" have been lifted July 2003 - average utility rates have escalated 10%-15%
• Greater electrical consumption coupled with a "moratorium" on power plant construction means further rate increases in the future
• Extremely attractive economic incentives - state rebates and federal tax incentives are currently available
• "Lock in" on your electrical rates now
• Solar power generation can be used for "peak shaving" during prime hours
• Solar energy reduces the adverse effects of utility company supply fluctuations
• Reliable
• Virtually maintenance-free
• Renewable, clean and environmentally "friendly"

• Solar power increases the resale value of your house
• Attractive
• Special opportunities for vacation homes

• Virtually risk-free investment
• Projects a positive image of being socially-responsible, "green" company
• Differentiates a company as being innovative
• Office and industrial buildings offer unique solar "opportunities"

New Jersey electrical rate "caps" have been lifted July 2003 - average utility rates have escalated 10%-15%
Similar to what's recently transpired in California, energy "caps" for New Jersey electrical utility companies have been lifted in July 2003, enabling utility companies to make up for lost revenues when rates were controlled by the BPU. Those companies without their own generating capacity (e.g., Jersey Central Power and Light) who have to purchase their power on the spot market will now pass those costs on directly to the consumer (similar to California). There also has been a consolidation in the industry (including offshore purchases of American utility companies), giving the few remaining utility companies even more "clout" in raising rates.

Greater electrical consumption coupled with a "moratorium" on power plant construction means further rate increases in the future

Demand for electricity has continued to increase, fueled in part by a growing dependence on computers and other electronic devices. However, the supply of electricity has not kept pace, as nuclear and other power generation construction has dwindled due to regulations and a lack of power-plant friendly communities. The historical 5% increases we have been seeing during the last few years may become insignificant as this growing demand continues to chase an almost constant supply of electricity.

Extremely attractive economic incentives are currently available

• Up to 70%of your system paid for by New Jersey utility companies' rebates – highest rates in the U.S.A.
  – including California!
• $5.50/watt up to 10kW
• $4.00/watt between 10kW and 100kW
• $3.75/watt between 100kW and 500kW

Renewable Energy Certificates - Green Tags for residences/businesses
Upto $40 per kW per year paid to you as part of a long term contract with companies that want to buy the environmental attributes of the "Green Electricity" generated by your renewable energy system.

10% Investment Tax Credit for businesses
The 10% investment tax credit, otherwise known as the business energy tax credit, has been permanently extended as part of the passage of the Energy Policy Act of 1992. This means that the solar energy industry will no longer be burdened with the prospect of a continually expiring and reinstated credit. (U.S. Code Citation: 26 USC Sec. 48)

Anyone who invests in or purchases qualified solar energy property can take the credit -- up to 10% of the investment or purchase and installation amount -- when income tax forms are filed. Only commercial entities can take the credit. This credit should not be confused with the residential tax credit which permanently expired in 1985. The credit cannot be claimed for property used mainly outside the United States, used by governmental units and foreign persons and entities, or used by a tax-exempt organization (unless the property is used mainly in an unrelated trade or business). See the SEIA website for complete details and eligibility.

Accelerated Depreciation for businesses
Federal 5-Year Depreciation Schedule for Solar Energy Property. Any commercial entity who invests in or purchases qualified solar energy property may use the accelerated depreciation schedule. The accelerated depreciation schedule cannot be claimed for property used mainly outside the United States, used by governmental units and foreign persons and entities, or used by a tax-exempt organization (unless the property is used mainly in an unrelated trade or business). See the SEIA website for complete details and eligibility.

"Lock in" on your electrical rates now
By purchasing your PV system now, you will "fix" your electrical generation "rate" (i.e., how much electricity you generate divided by the cost of your system). With electricity purchased from the utility companies, you have no control over what they will charge, particularly with the "caps" being lifted in July 2003 and uncertainties like the price of oil.

Solar power can be used for "peak shaving" during prime hours
Commercial users may be paying premium electrical rates, based on their peak usage. Solar power can substantially reduce those charges by reducing the peak loads, thereby not only getting "free" electricity to power the peaks, but also by qualifying the business to be charged lower rates for their "base load".

Solar power reduces the effects of utility company supply fluctuations
Even without battery backup, PV systems reduce the effects of brownouts and blackouts during peak generation periods due to overloads. Though more expensive, uninterruptible power supply (USP) systems can also be installed which enable operation of select circuits during grid outages. This can be especially important with mission critical equipment.

Reliable
PV power generation involves the (very reliable) sun for power and no moving parts (quiet) in the apparatus needed to convert its energy to electricity. The roof-mounting systems are engineered to withstand 125 mph winds, and the PV panels can withstand the impact of 1" diameter hailstones traveling at 50 mph. The panels and inverters are UL listed. In other words, these systems are virtually maintenance-free.

Virtually maintenance-free
With no moving parts and thoroughly tested technology, PV systems have almost no variable cost relative to their operation. This is akin to other predictably low operating cost generators of electricity: hydroelectric and nuclear power.

Renewable, clean and environmentally "friendly"
Unlike the generation of electricity by the utility companies who rely on hydrocarbon-producing combustion of coal, petroleum or natural gas, PV-generated electricity produces no harmful products and consumes no precious natural resources. This is a positive legacy which you will leave to your children and grandchildren.

Solar power increases the resale value of your house
It has been estimated by the real estate industry that for every $1.00 you save on your utility bill each year, the value of your house appreciates by $20.00. It may also be easier to sell the house, as PV systems positively differentiate your home from the others on the market.

Attractive
The solar industry has evolved and is sensitive to issues like aesthetics. Panels can be purchased in different frame colors and are placed on the roof to enhance the design. Attention is also given to ensuring that the wiring into the house are as inconspicuous as possible.

Vacation houses
Vacation houses offer a special opportunity. Since these are only used occasionally and the solar-powered electricity created all year around, they are prime candidates to be net positive generators of electrical energy, accelerating the payback of the system and reducing or eliminating monthly utility payments.

Virtually risk-free investment
With a markedly reduced initial cost (due to rebates, tax credits and accelerated depreciation), almost zero variable cost and an increasing value as the corresponding price of electricity rises, the downside risk of investing in a PV system is minimal. Furthermore, unlike purchasing electricity from the utility companies, PV-sourced electricity is not dependent on the volatile hydrocarbon spot market which is constantly affected by the price of foreign oil and worldwide politics.

Projects an image of being socially-responsible, "green" company
As a renewable non-polluting technology, solar power has been acknowledged to be the "fuel of choice" among people who are environmentally conscious. Besides the obvious economics, installation of a PV system shows your employees and customers you truly care about the well-being of them and their families. This positive image can be further enhanced by alluding to soliciting ISO 13000 "green points" due to AstroPower's use of recycled silicon chips.

Differentiates a company as being innovative
Demonstrates your company is a leader who is not afraid to embrace proven new technologies.

Office and industrial buildings offer unique solar "opportunities"
The large roofs and glassed atriums of these building provide a large area where solar panels can be installed unobtrusively. These previously "non-productive" areas can now help contribute to the "bottom line" by reducing your utility bills.