UNION, NJ-Food importer Kalustyan Corp. has completed a 700-kilowatt solar array on its 100,000-square-foot food processing plant here, says installer Solar Roof Development. Estimated to be worth about $100,000 of Kalustyan's electricity, the installation covers most of the 100,000-square-foot rooftop of the single-story industrial building at 855 Rahway Ave.


“We anticipate that there will be significant savings in our utility bill, and very quickly,” says M.J. Bas, Kalustyan’s operations manager. “For many small businesses that have to come up with the finances for projects such as this, the various incentives and the long-term financial benefits are huge.”

Federal and state incentives were a key factor in deciding to use solar power. The 30% federal renewable energy grant program was recently renewed and extended through the end of this year. “The first major factor is our overall contribution to the environment and cutting dependence on foreign oil,” Bas says. “And from a business standpoint, it is a great way to cut costs and become more efficient internally. The federal grant in particular was a major component--it allows us to receive a grant amounting to 30% of the system’s total cost within 30 days of completing the job.”


Because Kalustyan’s bank accepted the federal grant as a down payment, the company purchased the system without putting any money down, says Adam Putter, president of Fort Lee, NJ-based Solar Roof Development. The project also is eligible for 100% accelerated depreciation, minus half the cash grant in the first year, he adds.

In addition to the federal programs, incentives from the state “are extraordinary,” says Putter. “They include rebates based on energy-efficiency measures and solar renewable energy certificates. With this particular installation, we estimate the SREC credits to amount to $400,000 in the next year. These credits can be used as a recurring revenue source to help finance projects. The combination of federal and New Jersey incentives available right now are compelling, and the decision to go solar will never be better than right now.”