Posts Tagged ‘Solar Thermal incentives’

Even Boulder, Colorado Has Solar Hot Water Installs

Tuesday, January 10th, 2012 by Solar Fred

Boulder's Recreation Center - Powered by Solar Hot Water

Boulder, Colorado may have four seasons, including a full winter, but that hasn’t stopped this city of 100,000 from embracing solar energy in a big way—including solar hot water.

Home of the University of Colorado and the National Renewable Energy Laboratory (NREL), it’s not surprising that Boulder citizens would be very open to solar, but openness doesn’t install solar. Incentives and competition do.

Boulder’s incentives for solar PV systems have been quite generous until recently. Not too long ago, Xcel Energy, the city’s former utility, was offering a $3/watt rebate, knocking off thousands off the upfront cost. (Today, they’re under $1/watt.)

Aside from solar PV, solar water heating is also thriving in Boulder due to several local incentives and the 30% Federal Investment Tax Credit (ITC).

The specific Boulder and applicable state solar water heating incentives include:

The Solar Grant Program, which provides grants for solar water heating installations on housing enrolled in the city’s affordable housing program. Non-profit organizations and low-to moderate-income housing owned by non-profits are also eligible for the grants of up to 50% of the total out-of-pocket costs for the project –after all rebates, tax credits, and other incentives are subtracted.

PACE Financing: Although the program is currently suspended, Boulder’s PACE (Property Assessed Clean Energy) program was reportedly very popular while it lasted. Locally known as the “ClimateSmart Loan Program,” homeowners could install solar water heaters for almost no money down and receive a market rate 15-year loan with an added benefit: Because the loan was backed by a municipal bond, a tax lien was placed on the home. Why is that a benefit? Because it meant that if the homeowner sold the home before 15 years, the balance of the loan (and the solar system) would automatically transfer to the new homeowner. Normally, home improvement loans have to be paid in full when the property is sold. Unfortunately, the program conflicted with mortgage loans backed by Fannie Mae, and now PACE programs across the country are suspended…for now.

Sales Tax Incentives: The City of Boulder established a solar thermal rebate that gives a 15% refund on the sales tax paid for residential or commercial solar installation. In addition, the state of Colorado gives commercial, government, and nonprofits a 100% sales tax exemption for any solar system purchase, including solar hot water.

As a result of the above (and a solar supportive City government and community), I drove by many solar water heating installations in Boulder, including the flat plate installation (pictured above) installed on top of Boulder’s Recreation Center.

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Posted in 30% Investment Tax Credit, Solar Business Resources, Solar Hot Water, solar hot water resources, Solar Rebates, Solar Tax Incentives, Solar Thermal & Solar Hot Water News | No Comments »

1603 Treasury Grant Program may be ending, but it’s not too late!

Thursday, November 17th, 2011 by Solar Fred

Dear Free Hot Water Dealers and Distributors and blog readers,

It’s not too late! That is, it’s not too late to close commercial contracts that can qualify for the 1603 Treasury Grant Program (TGP) that is set to expire at the end of 2011, just 6 weeks away. A 5% safe harbor provision or starting on the install with a signed contract before the end of 2011 allows customers to be eligible.

In an effort to facilitate more solar thermal installations before the TGP ends, we’ve discounted a range of pre-engineered, pre-packaged OG-100 commercial solar thermal systems that can qualify for the TGP for commercial applications.

Plus, in addition to the pre-engineered solar thermal packages, we’re also providing our dealers purchasing the pre-engineered systems with simplified DIY TGP instructions, a TGP checklist, and a Sample TGP Application.

Paul Burrowes, our COO, explained, “At this point, it looks like the 1603 Treasury Grant Program is ending, but solar thermal installers may not realize that they still have time beyond December 31st, 2011, to install commercial systems. Under the TGP rules, there is a 5% safe harbor provision. Under certain conditions, an apartment building owner, for example, can purchase 5% or more of the equipment from the installer before the end of 2011 and qualify for the TGP. Under these conditions, the balance of the installation and equipment can be accomplished after 2011.”

Since 2009, the TGP has provided commercial entities a 30% cash grant towards to costs of solar projects in lieu of the 30% ITC. All solar technologies qualify, including solar water heating and other commercial solar thermal applications.

For example, pre-engineered systems are ideal for hotels, multi-family residents, nursing homes, hospitals, restaurants, laundry facilities, and many other commercial and industrial applications.

Installers who can sign contracts for these applications and purchase at least 5% of the equipment will enable their clients to take advantage of the 30% cash grants available under TGP.

The 5% Safe Harbor

Under the 5% safe harbor, if the applicant (the solar hot water purchaser or developer) pays or incurs 5% or more of the total cost of the specified energy property before the end of 2011, the applicant is eligible for the TGP. Alternatively, costs paid or incurred by a person providing property to the applicant, such as the solar hot water installer, can also be included under the 5% safe harbor provision.

In addition, Free Hot Water’s pre-engineered solar hot water systems can help qualify applicants through showing that “physical work of a significant nature” has begun by the end of 2011. Under this provision:

  • “Physical work of a significant nature” can include any physical work at the site where the solar hot water system is going to be installed.
  • It may also includes physical work that has taken place under a binding written contract for the manufacture, construction, or production of the solar thermal system by the applicant’s facility, provided the contract is entered into prior to the work taking place.

Other key points to keep in mind:

  • The person applying for the TGP must be a for-profit business and not a federal, state or local government, or non-profit business.
  • A project performance report is required on an annual basis for a period of 5 years after the property was placed in service.
  • Regardless of eligibility method, all applications must be submitted to the Treasury Department before the statutory deadline of October 1, 2012.

For more information on the 1603  TGP program, here’s a link to the Treasury Dept web site.

Burrowes said, “We sincerely hope the TGP gets extended. It has helped us and many of our dealers grow our business and create American solar jobs. By providing our discounts on pre-engineered solar thermal systems as the program possibly sunsets, we’re hoping to enable our Free Hot Water solar thermal installers to close contracts under the 5% safe harbor or begin construction before the end of 2011.”

You can see all of our line of pre-engineered commercial 0G-100 kits on our online catalog. Free Hot Water’s TGP forms and sample applications are available to all Free Hot Water dealers. Contact us for more information.

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Posted in 30% Investment Tax Credit, Solar 1603 Treasurty Grant Program (TGP), Solar Business Resources, Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Hot Water News, Solar Rebates, Solar Tax Incentives | No Comments »

RIP Steve Jobs and 3 Lessons for the Solar Hot Water Business

Wednesday, October 5th, 2011 by Solar Fred

R.I.P. Steve Jobs

When Steve Jobs resigned as CEO of Apple, I wrote a blog post on RenewableEnergyWorld.com about lessons that the solar PV industry could learn from him. Now, as the news streams in about his death, I’d like to add my thoughts about what the solar thermal industry can learn from Apple and Steve Jobs.

Steve Jobs/Solar Thermal Lesson #1: It’s okay to be #2, so long as you’re working hard to be the best at what YOU do. Even with all of Apple’s success today, the world is still dominated by PC based computers. Similarly, the solar thermal industry gets less attention from the press and policy makers. Being the #2 computer platform didn’t stop Steve Jobs from innovating and finding an extremely loyal following for Apple products. In the same way, solar thermal installers must continue to develop our own customer base that can most benefit from solar hot water and solar thermal applications.

Consequently, we must aggressively engage with apartment building owners, hotels, hospitals, colleges, and all multi-residential facilities, educating them about solar hot water’s benefits. With centralized heating systems and limited roof space, solar thermal is clearly worthy of the owner’s attention, and like Jobs, we must continue to send the message that solar thermal works and that it is cost effective for these applications (and more) —even without subsidies.

Steve Jobs/Solar Thermal Lesson #2: Rely less on policy and more on creating the market. While the CSI Thermal program here in California is in full swing, according to the latest research from SEIA, solar thermal growth in California is still pretty flat. I can’t think of any way that Jobs and Apple were markedly affected by a government policy, except perhaps NAFTA. But Free Trade benefits everyone. So, when it comes down to it, the Apple team and Jobs became successful without policy makers and incentives. They charged premium prices to customers, who gladly stood on a line for hours, sometimes days.

In the same way, solar thermal—and PV—must strive to provide solar thermal products and services that cost effectively serve its commercial and residential customers without depending on subsidies. In fact, Free Hot Water did just that recently, reducing prices on our new OG300 systems to make solar thermal more affordable for residential customers. Do subsidies help? Of course they do, but solar thermal is and will remain cost effective today, especially for large commercial installations listed above.

Steve/Solar Thermal Lesson #3: Believe in what you do and persevere. Steve Jobs has a great deal of success, but he also had a great deal of failure, being ousted from Apple in 1985. But he kept going, creating another computer company, NeXT… which also failed. And yet, Jobs didn’t stop innovating. He founded invested in Pixar and eventually returned to Apple to save it from bankruptcy. He didn’t do it for the money, but because he wanted to challenge the status quo. He didn’t believe that everyone should settle for a boring, complicated PC computer –or smart phone or slate computer.

Similarly, like Apple, solar thermal technology is very different from gas, propane, and electric water heating. Those energy sources currently may be the default water heating energies in America, but that’s not the case in other countries. Europe, Israel, and China are filled with solar water heaters and very common. Why? Because they lack the gas and coal that’s so abundant and cheap in the U.S, and so free solar energy is more valuable and prized.

Despite American market challenges, as an industry, we must continue to show people that there is another source of thermal heating power and that it is available throughout the world, today and for the foreseeable future–especially as fossil fuel prices rise.

Those are our thoughts on lessons we can learn from Steve Jobs’ life and work. If you have more thoughts related to the solar thermal industry, pleas share them in the comments.

Finally, we’d like to leave you with some inspiring quotes from Steve Jobs. At Free Hot Water, we celebrate his life and his worldwide inspiration to think differently. We hope you do too.

Living Life

“Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything – all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

– Stanford commencement speech 2005

Working Hard

“I don’t think I’ve ever worked so hard on something, but working on Macintosh was the neatest experience of my life. Almost everyone who worked on it will say that. None of us wanted to release it at the end. It was as though we knew that once it was out of our hands, it wouldn’t be ours any more. “When we finally presented it at the shareholders’ meeting, everyone in the auditorium stood up and gave it a 5-minute ovation. What was incredible to me was that I could see the Mac team in the first few rows. It was as though none of us could believe that we’d actually finished it. Everyone started crying.”

– Playboy magazine 1985

Doing the Work for Customers

“There’s nothing that makes my day more than getting an e-mail from some random person in the universe who just bought an iPad over in the UK and tells me the story about how it’s the coolest product they’ve ever brought home in their lives. That’s what keeps me going. It’s what kept me 5 years ago [when he was diagnosed with pancreatic cancer], it’s what kept me going 10 years ago when the doors were almost closed [on Apple]. And it’s what will keep me going 5 years from now whatever happens.”

- AllThingsD Conference, 2010

Doing the Work for Yourself

“We think the Mac will sell zillions, but we didn’t build the Mac for anybody else. We built it for ourselves. We were the group of people who were going to judge whether it was great or not. We weren’t going to go out and do market research. We just wanted to build the best thing we could build. When you’re a carpenter making a beautiful chest of drawers, you’re not going to use a piece of plywood on the back, even though it faces the wall and nobody will ever see it. You’ll know it’s there, so you’re going to use a beautiful piece of wood on the back. For you to sleep well at night, the aesthetic, the quality, has to be carried all the way through.”
– Playboy magazine 1985

Simplicity

“That’s been one of my mantras — focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”
– Business Week 1998

Innovation

“Innovation comes from people meeting up in the hallways or calling each other at 10.30 at night with a new idea, or because they realized something that shoots holes in how we’ve been thinking about a problem. It’s ad hoc meetings of six people called by someone who thinks he has figured out the coolest new thing ever and who wants to know what other people think of his idea. And it comes from saying no to 1,000 things to make sure we don’t get on the wrong track or try to do too much. We’re always thinking about new markets we could enter, but it’s only by saying no that you can concentrate on the things that are really important.”
– Business Week 2004

Instinct

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something – your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.”
– Stanford commencement speech 2005

Doing what you love

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.”
– Stanford commencement speech 2005

 

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Posted in Hotel Solar Hot Water, Residential Solar Hot Water, Solar Business Resources, Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Hot Water News, solar hot water resources, Solar Tax Incentives, Solar Thermal & Solar Hot Water News, SRCC OG-300 solar systems | 1 Comment »

Good News and Bad News for Maryland Solar Hot Water Incentives

Monday, June 6th, 2011 by Solar Fred

Which do you prefer to hear first? The good solar water heating incentive news in Maryland … or the bad solar water heating incentive news?

Frankly, the bad news is much less complicated, so let’s tackle that first.

The bad news: Maryland’s state rebate for residential solar water has been gutted reduced from $1,500 to $500, effective for applications received after 5 PM on June 2, 2011.

Ouch.

Click for larger image. Map from www.SRECtrade.com

The good news: Residential solar hot water systems installed after June 1, 2011, will qualify for SREC payments. Nice, eh? Err… Except, many readers may be  wondering what the heck an SREC is, and, more importantly, how much is it worth?

First things first: What is it?

  • An SREC (sometimes known as a “Green Tag”) stands for Solar Renewable Energy Certificate.
  • Similar to carbon credits, Maryland utilities are mandated to produce a certain amount of renewable energy every year.
  • If they can’t produce that clean power through their utility-owned wind and solar projects, then they have to pay for someone else’s clean power.
  • Thus, an SREC is a certificate that proves to the State that a solar system has generated 1 megawatt-hour (or 1000 kWh) of solar power. Of course, the utility needs a lot of these puppies, not just one or two.

And how much is an SREC worth?

Depends. Right now, there’s a market-based system, so the price can vary from month to month. These days, one SREC in Maryland is worth around $250, according to SRECtrad.com, a great SREC info resource.

Historically, Maryland only allowed the energy produced by solar PV systems to count as an SREC. But now, effective June 1, solar hot water systems also count… with some qualifications.

Eligibility requirements:

  1. Must be a Maryland residential solar hot water system that is NOT used for pool heating or Jacuzzis.  Only home water heating.
  2. System must be installed on or after June 1, 2011. (However, the program doesn’t start until January 1, 2012, so no cash generation until then.).
  3. The system must be certified OG-300 by the SRCC with collectors that are certified OG-100. (Check our online catalog for qualifying systems.)
  4. Since solar hot water production is generally measured in BTUs (British Thermal Units)
    1. The solar production must be measured by a meter that converts BTUs to kilowatt–hours, and
    2. The meter must meet the required standards of the International Organization of Legal Metrology. (Naturally, our SunReports meters meet all qualifications, the company confirms.)

So, ballpark, how much can a typical residential system earn in SRECS per year with a solar hot water system? Obviously, that’s going to vary by the type of panel, insolation, the yearly weather, location, etc.

However, a typical system with two collectors may produce around 4 SRECS a year, which means around $1,000 in a typical home owner’s pocket.

One more thing: Just in case you have a big house with a large system, the state limits your SREC payments to a maximum of 5 per year, so about $1,250 at current Maryland SREC rates.

So, although the upfront rebate has been substantially reduced, Maryland lawmakers have made up for it by making solar water heating eligible for SRECS. And don’t forget that residents will also qualify for the Federal Government’s 30% tax credit.

Spread the word, Maryland solar installers! SRECS (cash!) is coming to solar hot water.

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Posted in Solar Hot Water, Solar Rebates, Solar Tax Incentives, Solar Thermal Economics | 4 Comments »