Plastic bag manufacturer GloPak installs large solar system

New Jersey manufacturer takes advantage of solar tax creditsGloPak of South Plainfield, N.J., will annually reduce CO2 emissions by 690 metric tons of carbon dioxide. That’s right. In December of 2010, they signed a contract with The Solar Center of Rockaway, N.J., to install an eighty square-foot, 532-kilowatt roof system and a one-hundred-and twenty-five foot, 469-kilowatt ground system.

“The roof system is up and running. The ground system will be ready by January, “ said Gerry Heimbuch, VP of Commercial Sales for The Solar Center.

GloPak is one of many New Jersey manufacturers that intends to use solar to stabilize operational costs. Unlike other Solar Center customers, GloPak purchased its system and maximized savings with a 1603 rebate and a 100 percent depreciation tax incentive. GloPak’s systems will break-even in four years.

“At one time, they were evaluating a power purchase agreement option. With the volatility of the SREC market being what it is, they decided to buy straight out. We’re seeing more and more customers going with the PPA, though,” said Heimbuch.

Glopak is unique to the New Jersey business environment. It’s the only plastic bag manufacturer in the state using green energy to power its production process. The founder decided to move the facility from Newark in October 2011. The new building had unused parking facilities that presented a cost-saving opportunity.

“The roof installation was very straight forward. It took thirty days to get permits in order,” Heimbuch said. “The ground system presented challenges—zoning, permits and environmental drainage issues, but it will be ready to go in January.”

The Solar Center primarily focuses on commercial solar projects. It has been in business since 2004. With eight hundred projects under its belt and eight megawatts installed, the sun is shining on the company.

“We work with well established PPAs. We expect customers will want this type of deal until the SREC issue is stabilized,” said Heimbuch.