Solar Discovery

California is one of the world's leading solar energy users. This is due in large part to the state's progressive solar tax rebates and incentives. California's incentive programs have spurred massive growth in the solar industry there, which now claims roughly 85% of all solar installations in the United States. The state also has several solar power plants in line for construction. Here is a list of state rebates and incentives available to residential customers in

CALIFORNIA REBATES
California Solar Initiative (CSI)
One of the more ambitious incentive programs in the nation, allocating $3.2 billion over 10 years. Eligible solar systems include solar space heating, solar thermal electric, and photovoltaics. There are two ways to take advantage of the rebates:

• Expected Performance Based Buy-Down (EPBB). The EPBB Incentive is for systems with less than a 50kW capacity. The up-front, one-time rebate began at $2.50/W-AC (adjusted based on expected performance) but declines by $0.30 increments. There are ten incremental drops dependent on the number of solar systems installed. In other words, the closer California get to its goal of 3000MW, the lower the rebates will be.
• Performance Based Incentives (PBI). PBI Incentives are for systems of 50 kW or larger. Under this program, rebates are paid on a monthly basis with the rebate depending on that month's performance. Note that smaller systems (<50kw) this site to find current incentive levels.

In January of 2008, the CSI handbook was edited to allow rebates for non-PV solar technologies, which produce or displace electricity, such as those mentioned above (Thermal, Space heating/cooling). However, solar hot water heaters, which can also displace electricity, were excluded. The California Public Utilities Commission (CPUC) is currently running a pilot program (see below) in the San Diego area which will likely become the basis for later incentives for solar hot water systems.

Two Important Notes:
The California Solar Initiative is administered by the CPUC, therefore eligible homes must be existing, grid-tied homes. New homes fall under the jurisdiction of the California Energy Commission (CEC) and the New Solar Homes Partnership (NSHP-see below).

Equipment used must be installed by a licensed contractor and meet eligibility requirements, including being grid-connected and warranty specifications. Look here for a complete list of equipment requirements.

New Solar Homes Partnership (NSHP)
The NSHP is a set of tax rebates ($400 million over 10 years) geared toward California's builders and new construction. It covers Photovoltaics only and targets single-family, multi-family, and low-income residential construction. Incentive amounts vary based on the type of housing and expected system performance. NSHP homes must be at least 15% more energy efficient than current building standards although builders are encouraged to reach 35% above average efficiency.

• System size:
• Minimum: 1 kW AC
• Maximum: 100% of the home's expected electricity needs.
• Systems must be grid-connected and either self-installed or installed by a contractor licensed in California.

For other system requirements, see this site or the NSHP guidebook.
There are no direct state rebates for homeowners under the NSHP although savings are passed on through affordable housing and minimal energy costs. Federal rebates may be available to homeowners.

Pilot Solar Hot Water Program
This rebate program is taking place in the San Diego area for customers of the San Diego Gas & Electric company.
The maximum incentive for residential customers is $1500 and is based on expected performance.

• The system must be retrofit for an existing consumer.
• Specific licenses are required for installers.
• Note: Self-installers need not be licensed but must attend a one-day training workshop.
• Pool/Spa heating systems are NOT covered under the rebate program.
• Rebates are paid to contractors to be passed on to the consumer. Rebates are directly paid to owners of self-installed systems.
  

INCENTIVES
California State Feed-In Tariff
Adopted in 2006, this feed-in tariff includes both solar thermal electric and photovoltaics.
Prices are based on the CPUC market price and adjusted by time of use with higher rates being paid out during hours of peak demand (8am-6pm).

• Customers may enter 10, 15, or 20 year contracts.
• Maximum system size is 1.5 mW.
  Important Note: Any customer who participates in the feed-in tariff is unable to participate in any other state incentive.

These are just the State of California's tax rebates and incentives. For more information on state, local, and utility incentive programs for homeowners in California, visit the Database of State Incentives for Renewables & Efficiency (DSIRE).

On October 3, 2008 H.R.1424, the Emergency Economic Stabilization Act of 2008 was passed. Division B of this bill includes the Energy Improvement and Extension Act of 2008. This landmark legislation extends critical Federal Investment Tax Credits for solar customers and other renewable energy projects. This bill contains $18 billion in incentives for clean and renewable energy technologies, as well as for energy efficiency improvements.

See the entire bill, including Division B: Energy Improvement and Extension Act of 2008. As part of this legislation, the solar investment tax credit (ITC) has been extended for 8 years through December 31, 2016.

Here are the key provisions of the ITC:

1. The 30% federal investment tax credit for both residential and commercial solar installations is extended for 8 years through December 31, 2016.
2. Eliminates the $2,000 cap on the tax credit for the purchase and installations of solar electric on residential properties.
3. Addition of small wind energy and geothermal heat pump projects as qualifying installations for tax credits
4. Utilities may now benefit from the credit as eligible tax credit recipients.
5. Extends through 2009 the authority to issue clean renewable energy bonds.
   

Residential Tax Credit. Tax incentives include tax credits and depreciation. The Federal Investment Tax Credit for Residential is 30 percent of net system cost, capped at $2,000 (prior to 12/31/08 and no cap afterwards). It is a one-time credit, but may be carried forward (and possibly back) if not completely useable in the system installation tax year. Also, the IRS hasn't produced the form required for claiming this credit for individual filers.

Commercial Tax Credit. The Federal Investment Tax Credit for Commercial and Business owned systems is 30 percent of net system cost with no cap. The IRS current federal Form 3468 is available at www.irs.gov/formspubs. In the past, this credit could be carried forward fifteen or back three years. It's not clear if this has changed.

MACRS Business Incentive. Business owned systems may also be eligible for MACRS 5-year Accelerated Depreciation using IRS federal form 4562. For more info on commercial tax benefits and for updates on the CSI & IRS rules and forms, see the online version of the article at: www.ongrid.net/papers/PaybackOnSolarSERG.pdf.

Additional Information Sources. A source for information on all state and federal incentive programs around the country is available at the DSIRE project: www.dsireusa.org. In addition, the Solar Energy Industries Association (www.seia.org) has put together a "Guide to Federal Tax Incentives for Solar Energy," available for free at www.seia.org/manualdownload.php.

Value of Tax Incentives. Residential customers in higher income tax brackets see comparatively more value because residential electricity expenses are paid with after-tax dollars-they aren't tax deductible.

Incentive Tax Treatment. Tax treatment of the incentives depends on the type of customer, and possibly the type of incentive. For additional information on tax treatment, see the online version of the article at: www.ongrid.net/papers/PaybackOnSolarSERG.pdf. Of course, municipal and non-profit entities do not have to worry about these tax issues, as they are generally tax-exempt. More detailed information on solar finance and tax considerations is available from the Northern California Solar Energy Association's Solar Energy Resource Guide, at http://norcalsolar.org. Also see the Tax Incentives Assistance Project (www.energytaxincentives.org/tiap-solar-energy-systems.html) for more information on solar and energy efficiency tax credits.

~~~~~~~~~~~~~~~~~~~~~~~~~

Please Note: We do not endorse the sites behind these links. We offer them for your additional research. Following these links will open a new browser window.

Note: The preceding information regarding taxes, tax credits and depreciation is meant to make the reader aware of these benefits, risks and potential expenses, and help avoid claims by aggressive salespeople. It is not tax advice, and the author is not a qualified tax professional. Please seek professional advice from a qualified tax advisor to check the applicability and eligibility before claiming any tax benefits or exemptions.

This is the sixth installment about the provisions found in the recently passed Stimulus Bill. Included is information about Solar Water Treatment Plants, Department of Interior Funding and Solar for the Military.


Solar Water Treatment Plants (Enhanced funding for existing State programs)
Summary
Provides $6 billion for the State and Tribal Assistance Grants account ($4 billion for the Clean Water State Revolving Funds and $2 billion for the Drinking Water State Revolving Funds). To ensure that the funds are used immediately to create jobs, the money must be committed to projects under contract or construction within 12 months of the date of enactment. The bill requires that not less than 20 percent of each Revolving Fund be available for projects to address green infrastructure, water and/or energy efficiency, or other environmentally innovative technologies. The bill allows States to use less than 20 percent for these types of projects only if the States lack sufficient applications.

How to Take Advantage of This Funding
These projects will be announced based on an open-bid RFP. Please check with your municipal or state government for solar project opportunities through this program



Department of Interior Funding (Agency specific appropriations)
Summary
Appropriates $125 million to BLM for the management of lands and resources and suggests funds be used for renewable energy rights-of-way and related permitting projects. Allocation of these funds and expediting and enhancing the processing of renewable energy projects right-of-ways and related permit applications is anticipated.

How to Take Advantage of This Funding
These projects will be announced based on an open-bid RFP. RFPs will be listed on a website and search engines can be set up to help to track new business opportunities and RFPs as they come out.



Solar for the Military (Agency specific appropriations)
Summary
Appropriates $300 million for DOD research, development, testing and evaluation of projects to improve energy generation, transmission, and energy efficiency. Appropriates an additional $100 million for Navy and Marine Corps facilities, and further specifies that funds are for energy efficiency and alternative energy projects.

How to Take Advantage of This Funding
These projects will be announced based on an open-bid RFP.

This is the sixth installment about the provisions found in the recently passed Stimulus Bill. Included is information about Solar for Schools and Green Collar Jobs.

Solar for Schools (Enhanced funding for existing State programs)
Summary
Appropriates $53.6 billion to a state fiscal stabilization fund. Specifies that states shall use 18.2% of this money ($9.75 billion) for public safety and other government services, including the renovation of facilities and schools to meet green building standards. Solar energy projects qualify and schools can use money to install renewable energy generation and heating systems, including PV.

How to Take Advantage of This Funding
Please check with your municipal government or local school district for solar project opportunities through this program.

Green Collar Jobs (Enhanced funding for existing State programs)
Summary
Appropriates $500 million to fund job training programs in energy efficiency and renewable energy. Also appropriates $250 million for rehabilitation and construction projects on Job Corps Centers, including energy efficiency and renewable energy projects. Job Corps has 122 centers in 48 states; new centers are slated to open in the two remaining states, New Hampshire and Wyoming. Map of locations.

The solar industry in certain states is likely to be affected by an increase in regulations to use certified installers and electricians as local unions have begun to put pressure on governments for more stringent requirements and job classifications.

How to Take Advantage of This Funding
Agency guidance will be provided by the Department of Labor within 60-90 days. Check the DOL website periodically for updates.

Green Jobs Training: http://www.cnn.com/2009/LIVING/03/02/green.jobs.training/index.html?iref=newssearch

This is the fourth installment about the provisions found in the recently passed Stimulus Bill. Included is information about Solar on Federal Property, Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds.

Solar on Federal Property (federal guidance pending)
Summary
Appropriates $5.5 billion to be deposited into the Federal Buildings Fund for expenditures to construct, repair and make alterations on federal buildings to increase energy efficiency, including installing solar energy equipment. $4.5 billion shall be available for measures necessary to convert General Services Administration (GSA) facilities to high-performance green buildings. Appropriates $1 billion for non-recurring maintenance on Veterans Affairs facilities, including energy projects.



How to Take Advantage of This Funding
GSA must submit a plan to Congress within 45 days, detailing, by project, how funding will be used. GSA is currently reviewing hundreds of projects currently in the agency’s backlog. Projects will be evaluated based on how fast GSA can create jobs and how much added energy efficiency and sustainability can be gained from projects ready for construction awards within two years. The GSA will be considering hiring contractors for various projects with likely priority given to female and minority owned businesses. Once details are determined, they will be posted online. Secretary of Veterans Affairs must submit a plan to Congress with 30 days detailing how funding will be used. Any State may apply directly to the Department of Veterans Affairs for grants for construction of state-owned veterans home facilities. Pre-application is due by April 15 for all projects. State assurance of matching funds is due by August 15 to receive priority status.



Clean Renewable Energy Bonds (CREBs) (Enhanced funding for existing State programs)
Summary
Provides an additional $1.6 billion for new clean renewable energy bonds to finance facilities that generate electricity from renewable energy sources including solar facilities.



How to Take Advantage of This Funding
This is intended for governmental agencies since they cannot take advantage of the ITC. In a CREB financing, the holder of the debt instrument receives a federal tax credit in lieu of interest paid by the issuer. Thus, CREBs provide an issuer with the ability to borrow at a 0% interest rate. Small projects are given first priority. Dept of Treasury sets tax credit rate on a daily basis. Tax credits are made on a quarterly basis. Please coordinate with your municipal government on CREB projects. More information can be found at the CREBs website.



Qualified Energy Conservation Bonds (Enhanced funding for existing State programs)
Summary
Authorizes an additional $2.4 billion, up from $800 million, in bonds to finance State, municipal and tribal government programs to reduce greenhouse gas emissions. These bonds can be used by government agencies to reduce energy consumption in publicly-owned buildings by at least 20 percent, implement green community programs, or develop electricity from renewable energy resources. Demonstration projects that reduce peak electrical use also qualify. Public education campaigns to promote energy efficiency can also be funded.



How to Take Advantage of This Funding
Please check with your municipal government for solar project opportunities through this program

This is the third installment about the provisions found in the recently passed Stimulus Bill. Included is information about State Funding.

State Funding (Enhanced funding for existing State programs)
Summary
Appropriates $16.8 billion to DOE’s Office of Energy Efficiency and Renewable Energy, which will be distributed to the States. Provides $3.1 billion for State Energy Programs. This funding will most likely become available first and so this should be a priority for contractors and developers. How the funding is spent is at the discretion of the state energy offices and the Governor. Certain states will also be subject to legislative approval. The majority of the funding will be used for energy efficiency and renewable energy.

For example, New Jersey will most likely use most of the funding for residential and commercial solar installations. Other states will choose to use the majority for energy efficiency, however, complimentary efficiency and solar retrofitting opportunities are well suited.

The total amount also includes $3.2 billion for Conservation Block Grants. First-year funding for these Grants can be used to develop a “proposed energy and conservation strategy” that each local government must submit to Department of Energy without one year of receiving initial allocation. DOE must approve or disapprove it within 120 days.

Additional funding is contingent on plan approval. DOE funding also includes $5.0 billion for Weatherization Programs and $2.0 billion for batteries and storage.

How to Take Advantage of This Funding
In order to take advantage of the State Energy Program funding you should contact your existing solar program manager or the state energy office for more information. DOE guidelines for these programs were released March 12, and we suggest you contact the energy offices now to be prepared for the application process and to get any preliminary details. To be eligible for projects under the Conservation Block Grants program, coordinate with your local government. See Appendix A at the end of this document for funding that will go to each state.

Click on the links below for additional information on each state program:
California

Colorado

Other States

More California Links
Questions about Stimulus Funding
League of California Cities
California State Association of Counties

Federal links
Department of Energy
DOE Energy Efficiency and Renewable Energy



State Energy Program Funding
The following details funding that will go to each state.
State Funding
Alabama ..................... $55,570,000
Alaska ......................... $28,232,000
Arizona ....................... $55,447,000
Arkansas ..................... $39,416,000
California ..................... $226,093,000
Colorado ...................... $49,222,000
Connecticut ................. $38,542,000
Delaware ..................... $24,231,000
District of Columbia ... $22,022,000
Florida ......................... $126,089,000
Georgia ....................... $82,495,000
Hawaii ......................... $25,930,000
Idaho ........................... $28,572,000
Illinois .......................... $101,321,000
Indiana ......................... $68,621,000
Iowa ............................. $40,546,000
Kansas ......................... $38,284,000
Kentucky ..................... $52,533,000
Louisiana ..................... $71,694,000
Maine ........................... $27,305,000
Maryland ..................... $51,772,000
Massachusetts ............ $54,911,000
Michigan ...................... $82,035,000
Minnesota .................... $54,172,000
Mississippi ................... $40,418,000
Missouri ....................... $57,393,000
Montana ....................... $25,855,000
Nebraska ..................... $30,910,000
Nevada ......................... $34,714,000
New Hampshire .......... $25,827,000
New Jersey ................. $73,643,000
New Mexico ................. $31,821,000
New York ..................... $123,110,000
North Carolina ............. $75,989,000
North Dakota ............... $24,585,000
Ohio ............................... $96,083,000
Oklahoma ...................... $46,704,000
Oregon ........................... $42,182,000
Pennsylvania ................. $99,684,000
Rhode Island .................. $23,960,000
South Carolina ............... $50,550,000
South Dakota ................. $23,709,000
Tennessee ...................... $62,482,000
Texas .............................. $218,782,000
Utah ................................ $35,362,000
Vermont ......................... $21,999,000
Virginia ........................... $70,001,000
Washington .................... $60,944,000
West Virginia ................. $32,746,000
Wisconsin ....................... $55,488,000
Wyoming ........................ $24,941,000
American Samoa ........... $18,550,000
Guam .............................. $19,098,000
Northern Marianas ....... $18,651,000
Puerto Rico ..................... $37,086,000
Virgin Islands ................. $20,678,000
Total $3,069,000,000

Most deep cycle applications have some sort of charging system already installed for battery charging (e.g. solar panels, inverter, golf car charger, alternator, etc.). However, there are still systems with deep cycle batteries where an individual charger must be selected. The following will help in making a proper selection.

There are many types of chargers available today. They are usually rated by their start rate, the rate in amperes that the charger will supply at the beginning of the charge cycle. When selecting a charger, the charge rate should be between 10% and 13% of the battery's 20-hour AH capacity. For example, a battery with a 20-hour capacity rating of 225 AH will use a charger rated between approximately 23 and 30 amps (for multiple battery charging use the AH rating of the entire bank). Chargers with lower ratings can be used but the charging time will be increased.

Trojan recommends using a 3-stage charger. Also called "automatic", "smart" or "IEI" chargers, these chargers prolong battery life with their well programmed charging profile. These chargers usually have three distinct charging stages: bulk, acceptance, and float.