10/2/2009
New Jersey Congressman Frank LoBiondo and members of the Salem County Board of Freeholders visited Ranch Hope in August to learn about the installation of a new solar electric system through New Jersey’s Clean Energy Program. The system is on the roof of the Shelter of HOPE, making this building the first structure on the campus to be powered by solar energy.
The Shelter opened in January 2004 and provides short-term, youth services for young people from Salem, Gloucester and Cumberland counties.
The installation has a rated capacity of 9.6 kilowatts (kW) and is designed to produce 12,000 kW hours a year. The total cost was $75,000.00. Ranch Hope received a rebate in the amount of $49,440.00 from the Board of Public Utilities Customer On-Site Renewable Energy (CORE) Program.
“With the support of the CORE program, Ranch Hope’s out-of-pocket expense for the project was $25,000.00,” said David L. Bailey, Jr., CEO. “In the first three months since the solar panels were installed, the Ranch has saved $820.00, or 64 percent, on the electric bill for this building compared to last year.
“Couple this saving with the funds that will be generated through the sale of Solar Renewable Energy Credits (SRECs), the installation expense will be recouped in less than three years,” Bailey said.
When the solar system produces more electricity than is required to power the building, Ranch Hope will be compensated with credits at the full retail value of the electricity. The production of excess electrical power is captured through net metering.
Net metering allows Ranch Hope to obtain credit on its utility bill for each kWh of electricity produced in excess of the amount of electricity used over the course of a year. The stored kilowatt hours are “netted,” or paid back, on an annual basis.
“We appreciate the opportunity to partner with Atlantic City Electric on an inter- connection agreement which allows for net metering,” Bailey said.
A Solar Renewable Energy Credit (SREC) is created for every 1 megawatt hour (MWh) or 1,000 kWh of energy produced from a solar panel system. Ranch Hope estimates that the Shelter of HOPE system will produce 12 SRECs annually. In August, SRECs were being purchased for $680.00 each.
“The initial plans were based on a conservative SREC price of $550.00, with projected annual earnings of $6,500.00 and with savings of $1,000.00 in usage per year” explained Bailey. “Now we are projecting the payback timeline to be reduced to under three years, rather than four.
“After the system has paid for itself, Ranch Hope expects to initially realize over $8,000.00 in additional revenue and continued decreased energy costs for this one building. These funds may be earmarked for helping to expand services, to provide scholarships for young people, or to assist in the purchase of new vehicles,” he said.
A renewable energy system, like the solar panels installed at Ranch Hope, are designed to last over 30 years; sustain winds of up to 90 miles per hour; to withstand one-inch hail stones; and to be virtually maintenance free.
Ranch Hope’s Green Energy Plan calls for two more solar system installations. The first will be for the organization’s Main Office Building. The second system is outlined as solar fields that will produce energy to power the new treatment units that will be constructed in the near future.
The Ranch also seeks to create corporate partnerships for job training and placement in “green-collar” employment opportunities through its construction technology curriculum. Students from Ranch Hope’s Strang School were able to observe the solar installation process on the Shelter of HOPE. Construction of the new treatment homes on the Alloway campus will provide another practical workshop for students to learn about energy efficient technology as it applies to construction, installation and maintenance.
In addition, Ranch Hope is a partner in the energy consortium at Salem Community College for the Nuclear Energy Technology and Sustainable Energy Technology programs.
