Hawaii Solar Rebates and Tax Incentives – Updated!

Published on December 28, 2009 by Tor a.k.a. "Solar Fred".
Categories: Hawaii, Solar State Incentives, Solar Trends.

Photo:Flickr/ Vatsek

Aloha, solar powered Hawaii people! We’ve just updated our Hawaii solar incentives and rebates page. It’s wonderful to live in paradise, especially if you have robust solar rebates and incentives to take advantage of all of that sun.

Hawaii is in a unique situation in that it’s really on the ground floor of solar, yet the Islands are desperately in need of renewable and cheaper energy sources, such as solar hot water and electric, to reduce its dependence on oil and gas. Right now, over 80% of the energy needs of Hawaii is powered from imported oil and gas. That makes utility bills extremely high in paradise–which also makes solar very attractive over the long haul.

Recognizing the need for domestic and renewable energy sources,  Solar Hot Water systems are now mandatory with any new home built. On the down side, the personal tax credit for Solar Hot Water systems has been phased out. So unless you put in your reservation for a system sometime before 1/1/10, you’ll be paying full price. The good news is that it solar hot water still qualifies for the Federal 30% Solar Tax Credit. There are also variances to get you off the hook for solar hot water, but why would you do that?

Hawaii is also about to roll out a Feed-in Tarriff that will pay you for the energy that your solar electric (PV) system produces.  That Feed-in Tariff rate hasn’t been announced yet, but when it is announced, you’ll get an even faster payback for your solar PV system.

We’ve got a lot of info in this Hawaii solar update. If you’re still confused, ask one of our local installers about what it all means for you and your home. They can give you a free quote, so really, nothing to lose but a little bit of time.

Happy Holidays from Solar Power Rocks!

Published on December 26, 2009 by Dan Hahn.
Categories: Solar Trends.

It’s been a huge year for solar! Progressive solar legislation has been flying off state and government legislator’s desks, we’ve passed along more solar requests in 2009 than the previous two years combined, Solar Fred has joined our ranks, and all signs point to an explosive 2010 and beyond for the solar industry.

Thank you all! Without your curiosity, questions, and support, we wouldn’t be able to continue to provide the most detailed solar info on the internet. As long as you’re interested to see how solar pencils out for you, we’ll be there for you to clear up any solar questions you’ve got!

Cheers and warmest holiday wishes,

- Dan, Dave, and Solar Fred

How to Calculate the 30% Federal Solar Investment Tax Credit (ITC)

Published on December 15, 2009 by Tor a.k.a. "Solar Fred".
Categories: Solar Trends.

Photo:Flickr/ AnnCleaver 2000

The end of the year brings the thought of the Spring yet to come. And with that Spring comes the taxes yet to pay.

Me thinks this is why we’ve been getting a lot of emails about the 30% Federal Investment Tax Credit (ITC) for solar. Some claim that one should calculate the 30% tax credit before any state or utility rebates; i.e., the gross installed cost. Others claim one should calculate the 30% after deducting state rebates; i.e., the net cost paid to your installer, who typically collects the rebate on your behalf. Which is right?

Before I answer that excellent question, please read the following 3 important caveats:

1) We are solar geeks, not tax geeks. Please, Lord, we pray that ye will consult thy personal tax geek before following our unprofessional tax guidance. Amen.

2) As of 12-15-09, the IRS and its tax lackeys have yet to write clear guidance on this issue. Instead, they have left it up to interpretation, thus far. This may be their idea of tax accounting sh$ts & giggles. We are not amused (but please don’t audit us.) Nevertheless, as noted below, we have consulted an authority on the subject.

3) Please Re-Read #1 and #2. You have been warned. Cross your fingers and read on.

So, which is right? The short answer is that both are right, but one method applies to residential solar (homes) and the other applies to commercial solar (businesses) –but with a catch.

For Residents:

• Calculate your 30% Federal tax credit after any state or utility rebates. That’s how we do it here on SolarPowerRocks.com. In other words:
• If the cost of your solar power system was $35,000 before any rebate, and you receive $15,000 in state rebate money, then we suggest you calculate the 30% off $20,000.
• Thus, your tax credit would be $6,000, bringing your net system cost to $14,000.
• Solar Fred Important Note #1: This $6,000 tax credit is not refundable. So, if you owe $3,000 in taxes for 2010 to the IRS, you’ll pay no taxes on April 15th, but Uncle Sam won’t be sending you a $3,000 refund check. Instead, you must apply this to next year’s taxes….or the next.
• Solar Fred Important Note #2: If you get your solar system through a solar lease or a solar PPA, you DO NOT get the 30% tax credit or any REC payments, if applicable. The solar leasing or solar PPA company gets it. Too much to go into now, but this is why buying is better in the long run. That reminds me to shamelessly plug the fact that you can get a free solar quote now from one of our local partner installers to see if solar makes financial sense for you…or not.  Moving on.

For Commercial Solar Installations:

• Feel free to calculate your 30% Federal ITC tax credit before any state or utility rebates. But there’s a catch.
• The catch is that Uncle Sam sees you as a profit making venture. Consequently, if you get a rebate of $15,000 rebate from the utility, that’s seen as income/revenue, and therefore, they’re going to tax that $15,000.
• So, in the same example, you can subtract $15,000 off your $35,000 gross cost, and also apply another $10,500 (30% x $35,000) to your quarterly tax bill, making your pre-taxed net cost $9,500.
• However, that $15,000 will be taxed as income, and thus….could take away any gain over the residential net benefit. Bummer.
• Solar Fred Important Note (again): If you finance your solar system through a solar lease or a solar PPA, you DO NOT get the 30% tax credit or any REC payments, if applicable. As with residential, the solar leasing or solar PPA company gets it. Once, again too much to go into now, but this is another opportunity to shamelessly plug the fact that you can get a free solar quote now from one of our local partner installers to see if solar makes financial sense for your business…or not.
• Solar Fred Important Note: Solar companies and developers who are creating solar products or large industrial installations for can apply for 30% “grant.” Yes, cash. This is part of the stimulus package, but it doesn’t apply to non-solar businesses. Bummer again.
• Solar Fred Important Note #2: If you sell your commercial property within 5 years of installing solar, there may be some tax consequences. Please see the comments section of this post for more clarification.

And what is our source for the above? We have divined this tax guidance from the Solar Energy Industry Association (SEIA), mere mortals, but ones with connections to tax gods. Please see this SEIA FAQ and the corresponding explanation from our other mortal friends at the Database of State Incentives for Renewables and Efficiency (aka DSIRE.)

Read the Leaked Transcript of the UUWS Climate Skeptics Meeting

Published on December 11, 2009 by Tor a.k.a. "Solar Fred".
Categories: Solar Trends.

Photo:Flickr/ Mike Licht, NotionsCapital.com

SolarPowerRocks Newswire – Los Angeles.

Breaking News. Unidentified green advocates have hacked into the servers of the Union of Unconcerned Wannabe Scientists (UUWS) and leaked the transcript of their last meeting on December 7th.

Attending members of the UUWS “Tea Party-Thinky Tank” were not identified in the transcript beyond their first names and last initials. However, the transcript clearly shows there is a smoking gun of a smoking gun–as well as a conspiracy against science and reason.

Sara P: Hey, everybody! I just shot a Moose!

Dick C: Very funny, Sara. We already have our smoking gun. We’re calling it derisively “climategate.” Put the rifle down.

Sara P: You betcha. I’ll just start skinning her. Who wants the rack?

Bill O: Sara, focus! I’m on your side, but what we want to do right now is nail the coffin on these global warming fear mongering freaks… In a fair and balanced way, of course.

Dick C: Of course. These leaked Cimategate emails are a start. But I’m concerned that the eggheads at the Union of Concerned Scientists will eventually overwhelm the non-Fox media and liberal blogosphere with scientific facts instead of our quasi scientific hooey.

Rush L: My friends! I’d like to interrupt here and say that we do not need science to cloud the minds of the public or indeed, our own minds. Nor do we need to prove anything. All we need to do is to cast doubt, belittle these scientists as “liberal elites,” and yell louder than they can.

Bill O: Exactly! And if they say something we can’t refute or corner us with their “science” we just keep yelling and say, “Oh, please!” act disgusted, and tell the producer to cut off their microphones.

Sara P: And don’t forget Face Book. I’ve got a million of my closest friends who trust me because I’m like them, gosh darn it. We don’t want to hear depressing end-of-the world news, even if it is true. I think if we ignore it, and keep a positive attitude, then everything will be okay.

Rush L: What if…. we’re wrong?

Sara P: Oh, Rush! Even if we’re wrong, heck, our kids and grandkids’ll figure it out. It’s not our problem.

Dick C: So then, we’re all agreed. We’re going to ignore all of the national academies of science, including our own, that have officially determined that global warming is real and a threat. Instead, we’re going to yell, ignore, and keep a positive attitude. Agreed?

All: Agreed.

***

Now, you know all the above is a joke, but if you’re on this website, there’s a good chance you know that global warming is not a joke. Unlike Sara P’s statement above, there really are things you can personally do about it.

First, you can decrease your energy consumption. There are many ways to do that.

Second, you can consider solar for your home or business by getting a free quote. Not only will you help the planet, but with the tax incentives and local subsidies, you’ll also save money if you live in a solar friendly state. Check out the list to the right for your state.

Third, if you live in an apartment or your home is not right for solar, you can at least support solar energy through sharing websites like these on FaceBook and Twitter and joining organizations like the vote solar initiative.

Thanks for considering solar.

Photo:Flickr/ Mike Licht, NotionsCapital.com

Colorado Solar Power Rebates and Incentives – Updated!

Published on December 6, 2009 by Tor a.k.a. "Solar Fred".
Categories: Solar Trends.

Photo:Flickr/Mfajardo

Man, oh, man, there’s so much to love about Colorado: Skiing, Beer, Cattle Ranchers, Beer, Skiing. Did I say those last two already? My bad. In any case, add solar power to that Rocy Mountain short list.

Colorado is really in the top 2 of solar states, as far as incentives and net metering is concerned. (New Jersey could be #1. Yes, New Jersey.) The reason is that Colorado is not only offering some of the richest solar incentives, but also prices are very competitive among installers because of those high rebates.

Colorado also breaks the myth that it needs to be warm to have solar. In fact, solar is more efficient in cold weather. Just ask the people at our National Renewable Energy Laboratory (NREL) in Lakewood, CO, where solar geeks and scientists rule, finding new ways of harnessing the sun’s energy. On top of all that, if you’re interested in hands-on solar training, Colorado is home to one of the best solar learning institutions: Solar Energy International.

Needless to say, we at SolarPowerRocks.com love beer. And we also love solar! So Colorado rocks on two levels for us.  But things change quickly in the solar rebate and incentive world, so we’ve just updated our Colorado State Page just for you.

Bottom line, you can now get an average 5kW solar PV system in the Boulder/Denver area of Colorado for around $11,900 after all of the rebates and tax incentives.  Your electric bill that used to be $100 a month? It’s now an average of $28/a month.  And the savings are only going to get better as regular coal fired utility rates rise over the next 25 years. Payback is conservatively around 12 years, depending on your particular energy needs and future electric rates.

Want more good news?  We’ve expanded our installer network. So if you live in or near the great beautiful solar cities of  Aurora, Beverly Hills, Boulder, Castle Pines, Castle Rock, Centennial, Commerce City, Englewood, Glendale, Greenwood Village, Highlands Ranch, Kellytown, Littleton, Lone Tree, Northglenn, Parker, Roxborough, Thornton, or Westminster, CO, we’ve got someone to give you a free quote to see if solar is right for you. It may not be right, but isn’t it worth “free” to find out? We think so, but we also think beer is a verb.

So beer in mind that solar power rocks in the Rockies and Colorado. Enjoy.