The view north from Hobbymasters’ roof, which gets unimpeded exposure to the sun.
In what’s being billed as the largest installation of its kind in the Red Bank area, game & toy retailer Hobbymasters plans to cover the roof of its White Street building in electricity-generating solar panels next month.
Alan Placer, whose family owns Hobbymasters and the two-story building that houses it, calls its 9,600-square-foot roof “a perfect platform” for the project because it’s flat and gets full sun exposure.
When completed, the $180,000 system is expected to throw off 23 kilowatts of power, saving the store an estimated $500 a month in electricity costs, says Placer.
“All in all, the system will have paid for itself and the [underlying new] roof in five years,” Placer says, citing cost savings, federal tax depreciation credits and tradable Solar Renewable Energy Certificates issued by the state that could alone be worth up to $20,000 a year.
A state grant is covering one-third of the costs.
Placer and his family are big on conservation; readers may recall our item on his mom, Arlene, and her effort to recycle packing peanuts.
The solar project has been in the works for more than a year, following discussions about the need for a new roof that employees weighed in on, too.
“It was time to put a new roof on the building, and all of the employees wanted to do it greener,” Placer says in a notice on the store’s website. “After exploring a grass roof, wind turbines, or solar, it was determined that solar panels were our most green option.”
Garden State Solar in Middletown is the contractor on the installation. More information on the project is available here.
I have nothing against the Placer family. I have nothing against conservation efforts and working toward a cleaner world. All noble and worthwhile efforts. But are you sure you want to put this out as the poster child for "going green".
". . . the system will have paid for itself and the . . . roof in five years". At a $500/month savings and $180,000 price tag, assuming no repairs, upkeep, servicing, and forgetting the value of money, it will pay for itself in THIRTY years! By Mr. Placer's own admitted numbers, he is paying $30,000 (minus tax breaks as a business expense). So how does that new math work? Oh, right, The usual way . . . the tax payers are paying for the rest: $150,000.
You are certainly welcome my friend. Happy to help.
Congratulations to Hobbymasters for showing that saving the planet can also save you $$. Let's hope other businesses (and residents) will follow their example. This is what it will take to end our dependency on foreign oil and slow down the climate change.
$180,000 with a state grant covering 1/3 of the cost, now $118,800. Green tag credits of up to $20,000 per year = $120,000 in 6 years. Easy math = good savings. And zero in upkeep. Why are you against hobbymasters for doing something that is good for business.
$180,000 with a state grant covering 1/3 of the cost, now $118,800. Green tag credits of up to $20,000 per year = $120,000 in 6 years. Easy math = good savings. And zero in upkeep. Why are you against hobbymasters for doing something that is good for business.
It sounds like solar power is not very cost effective. If it were not for the government grants, it would take 30 years to pay for itself, and that does not even include interest. Solar power is not the most practical solution to our energy problems.
1. Solar is a relatively new technology, and as such requires some initial capital investment that can only come from the gov't.
2. Existing energy sources (coal, etc.) are subsidized indirectly because their cost doesn't include the impact on the environment, health, etc. Grants for solar make it a bit more of a level playing field.
Alan from Hobbymasters here. I believe the guys at Sea Bright Solar answered the math question for us. But honestly even if the State falls through on the grant (it's NJ so we don't hold our breath) it's still well worth it to us. We plan on keeping the store here for another 20+ years. The payback rate for the solar panels is rated at today's electricity pricing. In 10 years from now who knows what electric will cost. Look around Red Bank's streets and you'll see lots of houses that have gone solar. It only makes sense for the business district to do so too.
You tell em Brian. But I have to say I am only being bid $475/ kilowatt for my 2009 SRECS.
That is the sad fact: Without state incentives, solar energy is a bad investment, using current technology.
Cap't Picard is absolutely correct.
In real terms, a "dumbed down ROI analysis" (ignoring state incentives, depreciation, time-value of money, future costs of electric power, etc), the period to realize a return on investment for this installation is 30 years.
Life expectancy of the solar array is.. .30 years. Wheeee!
Solar has a VERY LONG WAY to go before this is economical.
Look, I plan to expand the solar capacity on my home. But it ain't for the sake of money. One would be better rewarded putting the money into an interest-bearing account and carrying on "business as usual."
Hats off to Hobby Masters for making the investment. ..An extremely cool store with a cool philosophy.
On balance, it shows they're interested in the "Greater good" rather than a direct, financial gain. 28KW is sufficient for 10-14 normal homes' worth of consumption.
Ken: I'll keep my hat on, thanks. How do you get "no direct, financial gain" when they're getting a $180,000 roof for $30K? They're willing to "make the investment" with our money. Hats off to us!
Padrone, you're correct. However, the financial analysis of the Hobby Master ownership should account for the possibility of the cessation of these annual "energy credits."
For any individual or entity to presume thirty years' worth of $20k annual "Green credit" in a financially strapped state is a bit naive.
In short, the assumption of a "five year ROI" is likely optimistic.
I am sure an businessman running a successful store in RB will understand this.
Alan and Hobbymasters–> Congratulations on taking this step. You may discover that you're ahead of the curve. ANd, to make it totally cool, you should see if you can set up a demo solar-powered train set upstairs.
I for one, appreciate you thinking into the future. If nothing else, this will serve as a model to follow or perhaps learn from in the next decade…
Hobbymasters is awesome. They're one of a kind, and one of the few compelling reasons to visit Red Bank.