Free Essay: Installation of Solar Panels in CUNY

I am writing to inform you of the estimated budget savings of the proposed capital project over a 30-year period. Capital projects, often, are subject to a three percent discount rate, and a thirty-year schedule. Only projects with benefits exceeding costs would be included in the CUNY capital budget.

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After days of extensive research, I have concluded the following: the estimated cost per building is roughly $10,000,000. The estimated cost savings are so convoluted, and thus it is difficult to come up with a real figure. However, I have decided the financial analysis should include a range of three different cost estimates for electricity savings to the CUNY budget:

a) $1 million in annual savings, using the Con Ed retail rate per building;

$750,000 in annual savings, using a blended rate due to PASNY power; and

$500,000 in annual savings, using “avoided cost” for a large user.

The student advocates used the current Con Ed retail rate for the cost of electricity for an average building. But some energy analysts maintain that a better number reflects a blended rate because a huge block of electricity comes from PASNY, which is provided at a wholesale rate and is very cheap. Furthermore, the Public Utility Commission has maintained an antiquated regulatory policy, called declining rate, which gives preferential rates to the biggest consumers of electricity. Besides, due to the Investment Tax Credit (ITC), the cost of installing a solar energy system will be reduced significantly. The federal tax credit will allow a deduction of 26 percent of the total cost of installing a residential solar energy system in CUNY. The investment tax credit is a key federal policy that supports innovations in the industry, and thus in the next few years, there are likely to be significant breakthroughs in solar technology and storage.

I call upon you to put CUNY at the forefront of creating a sustainable NYC by installing solar panels on all buildings now. This action plan includes installing state-of-the-art solar panels, establishing storage batteries to allow the new electricity generated to be used during peak-load periods, and covering the roofs with white, reflective paint, which will save enormous energy during the warmest months. I have estimated that the initial cost will be paid back in energy savings in less than ten years, quite apart from the social benefits of improving our air quality and kick-starting a green energy industry in our local economy. Besides, solar power reduces carbon pollution, thus making it a clean and healthier source of energy. Therefore, I expect you, as a visionary leader, to drag CUNY into a sustainable future.