Solar Discovery

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.

This is the second installment about the provisions found in the recently passed Stimulus Bill. Included is information about Grants and the Loan Guarantee Program.

Grants (federal guidance pending)
Summary
Creates a new program through the Department of Treasury that provides grants equal to 30 percent of the cost of solar property placed in service during 2009 and 2010, in lieu of the section 48 investment tax credit.

The 30% will be calculated on the same "tax basis" that would have been used to calculate any investment tax credit. The section 48 credit applies to commercial and utility-scale projects only, not residential projects.

Property that is not placed in service prior to December 31, 2010 qualifies for the grant program as long as construction begins prior to December 31, 2010 and is placed in service by January 1, 2017.

Congress stated that it intends the grants to "mimic the operation" of the investment tax credit. Therefore unless the Treasury says otherwise, developers can assume that the same rules will apply to grants that would have applied to the investment credit. So the grants will be paid to the same person who would have claimed an investment tax credit on the project.

For example, if the project is owned by a partnership, the partnership is the entity entitled to the grant. Anyone receiving a grant will have to file quarterly reports with the Treasury on how the money was used and estimate the number of jobs created or retained. The grants do not have to be reported as income by the recipients.

How to Take Advantage of This Funding
Applications will be provided by the Treasury Department within the next 30-60 days. Applications must be filed by October 1, 2011. A developer can apply for a cash grant at any time, but the Treasury has up to 60 days after the application is submitted or the project is placed in service to pay the grant, whichever is later. To date, no administrator within Treasury has been assigned to this, however, Sharp is working with SEIA and others to propose a structure and process to implement these grants quickly.

Loan Guarantee Program (federal guidance pending)
Summary
Establishes a temporary Department of Energy (DOE) loan guarantee program for renewable energy projects, renewable energy manufacturing facilities and electric power transmission projects. Appropriates $6 billion to pay the credit subsidy costs, which should support $60 billion worth of loan guarantees.

Eligible renewable projects are those that generate electricity or thermal energy and facilities that manufacture related components. Projects must commence construction by September 30, 2011. Davis-Bacon wage requirements (prevailing federal wage) apply to any project receiving a loan guarantee.

How to Take Advantage of This Funding
The DOE will announce a solicitation for loan guarantee applications after they submit guidelines in approximately 30 days. The application process will closely resemble the current DOE Loan Guarantee Program process.

The Secretary of Energy stated this week that they are streamlining the program and they plan to start approving loan guarantee applications by late April/early May. It usually takes them about 1 year to create a program, so getting the program up and running in 60 days is very fast. They will use an expedited application approval process, so it will probably take 2-4 weeks to approve after the application is received.

Since the Energy Secretary would like to start approving applications in April/May, they would need to have an application available in about a month. We believe this timeline is realistic since the loan guarantee infrastructure is already in place.