Treasury Section 1603 Program - Federal ITC CASH GRANT - Extended!

Last night, with the passage of the Federal Tax Bill, the U.S. House of Representatives ensured another year of outstanding growth for the US solar industry: a one-year extension of the Department of Treasury Section 1603 program better known as the Cash Grant.

The program was created by the American Recovery and Reinvestment Act (Section 1603) to provide commercial solar installations with a cash grant in lieu of the 30 percent solar investment tax credit (ITC). President George W. Bush signed the 8-year ITC into law in 2008, but the economic conditions created by the global recession made it clear that few would be able to utilize the tax credit.

So far, the TGP has helped move forward more than 1,100 solar projects in 42 states and supported $18 billion in investment. The program has been critical in allowing the solar industry to grow by over 100 percent in 2010, create enough new solar capacity to power 200,000 homes and provide work to more than 93,000 Americans.

Solardelphia looks forward to a booming 2011!

Here are Some Background Materials Courtesy of SEIA

SEIA policy overview of Treasury Grant Program: http://seia.org/cs/federal_issues/treasury_grant_program

Fact sheet on TGP and job creation: http://www.seia.org/galleries/FactSheets/Factsheet_TGP.pdf

Summary of solar projects awarded a Treasury Grant: http://www.seia.org/galleries/pdf/TGP_Awards.pdf

EuPD Research "Economic Impact of the Extension of the TGP": http://seia.org/galleries/pdf/EuPD_Research_Solar_Report.pdf

The SunPower Advantage - Not all Watts are Created Equal!

Your solar system is one the biggest investments you will ever make -

Great Breaking News: FEDERAL Solar Tax GRANT PROGRAM Included in Senate Tax Compromise

Section 1603 Extension Included in Senate Tax Compromise!

Solar Energy Industries Association Applauds Inclusion of Treasury Section 1603 Program Extension in Senate Tax Compromise

Extending program will drive U.S. solar industry growth and job creation in 2011

WASHINGTON, DC – Solar Energy Industries Association (SEIA®) and the rest of the solar industry int he US are applauding the Senate's inclusion of a one-year extension of the Department of Treasury Section 1603 program in their tax bill compromise.

To date, the program has facilitated the construction of more than 1,100 solar projects in 42 states. At a minimal cost to the tax payer, the 1603 program has supported $18 billion in investment in new renewable energy projects throughout the country and has created tens of thousands of jobs. Plain and simple, this program provides the greatest return on taxpayer dollars. The program has allowed the solar industry to grow by over 100 percent in 2010, create enough new solar capacity to power 200,000 homes and double domestic solar employment to more than 93,000 Americans. This program has created new opportunity for electricians, plumbers, and construction workers during the worst economic climate since the great depression.

Rhone Resch of SEIA: "An extension of the program will keep our U.S. industry growing and help achieve the industry's goal of installing enough new solar energy to power 2 million new homes each year by 2015. None of this would be possible without the tireless leadership of solar's champions on Capitol Hill on both sides of the aisle. In particular, Senators Cantwell, Feinstein, Ensign and LeMieux stepped up to support American jobs in the renewable energy industry and helped convince the Senate to include this provision in the final bill.
"But this is not over yet. Congress must now move swiftly to pass this compromise bill and keep solar working for America."

The TGP was created by the American Recovery and Reinvestment Act (Section 1603) to provide commercial solar installations with a cash grant in lieu of the 30 percent solar investment tax credit (ITC). President George W. Bush signed the 8-year ITC into law in 2008, but the economic conditions created by the global recession made it clear that few would be able to utilize the tax credit.

So far, the TGP has helped move forward more than 1,100 solar projects in 42 states. A report on the impact of the extension of the TGP by EuPD Research projected it would create 65,000 new U.S. jobs and 5,100 megawatts of solar capacity – enough to power more than 1 million households.

Background Materials & RESOURCES

SEIA policy overview of Treasury Grant Program: http://seia.org/cs/federal_issues/treasury_grant_program

Fact sheet on TGP and job creation: http://www.seia.org/galleries/FactSheets/Factsheet_TGP.pdf

Summary of solar projects awarded a Treasury Grant: http://www.seia.org/galleries/pdf/TGP_Awards.pdf

EuPD Research "Economic Impact of the Extension of the TGP": http://seia.org/galleries/pdf/EuPD_Research_Solar_Report.pdf

The Solar Foundation National Solar Jobs Census 2010: http://www.thesolarfoundation.org/sites/thesolarfoundation.org/files/Final%20TSF%20National%20Solar%20Jobs%20Census%202010%20Web%20Version.pdf

SEIA and GTM Research US Solar Market InsightTM Executive Summary: http://seia.org/galleries/pdf/SEIA_Q2_2010_EXEC_SUMMARY.pdf

PA Electricity Market Deregulation

December 31, 2010 marks the final round of rate cap expiration- bringing full fledged competition to the entire state and ending the controversial electricity deregulation process. Of course, if you install a solar system, you will be protecting yourself from future rate hikes and hedging against rising energy costs. The kWh rate you pay for electricity the day your solar system is turned on will be the same for the next 25+ years. No electricity supplier can provide this peace of mind.

Background on Deregulation:

In the early 1990’s Pennsylvania’s electricity rates were 15% above the national average- an unusual situation considering the keystone state’s abundance of cheap coal. Unlike cable or Internet service you had no choice where your electricity came from- electricity was a state-run monopoly. This all changed in 1996 with the passage of the Electricity Generation and Customer Choice and Competition Act. The bill was intended to make electricity cheaper by allowing outside companies to compete with PPL, Duquesne Light, PECO, and the other 8 regional monopoly utilities. Fearful of price gouging legislators tweaked the deregulation bill. Instead of allowing full competition they placed rate caps (or price ceilings) on utilities and allowed them to collect a Competitive Transition Charge (CTC) from ratepayers, reducing the ability of alternative suppliers to compete and rendering deregulation unsuccessful for the most part.

What Now? What Does this Mean to me?

PA utility rate caps expire in 2011, which will cause PA's articifically low electricity prices to rise anywhere from 10% to over 50% (in some parts of the state.)

HOWEVER, the great news is that you can now choose the company that generates your electricity - also known as your electric supplier. This means you have the power to switch to a competing supplier who can offer the lowest price, or provide a specific service you want such as green/renewable energy.

Understanding the basic types of plans will help you to get the best bang for your buck. There are three types of electricity plans; fixed, variable, and time-of-day rates. With a fixed rate the price of electricity will remain the same throughout the contract. Not shopping will automatically place you on your current utilities fixed rate (an exception is large industry where the default rate is volatile hourly pricing).

A variable rate changes with the electricity market month to month. This plan takes advantage of price dips but can also result in short term price hikes.

Finally, Time-of-Use rates are based on normal daily price fluctuations. When there is a high demand for power, called peak hours, electricity costs more. With this type of plan, you can save money by concentrating your electricity use during low demand periods or outside of regular business hours. This form of pricing is ideal for consumers who can shift their electricity use with few consequences. A basic example is a resident who decides to do laundry in the evening instead of the middle of the day.

There is a fourth type of electricity plan where you can incorporate renewable energy. Each month an additional charge will be added to your monthly bill to support the use of more expensive renewable energy like wind and solar. This option is attractive for businesses and individuals who highly value being green. Renewable options did not exist under regulation and utility’s one-size-fits-all electricity plans.

Everyone’s electricity use is different but under regulation it was impossible to find an electricity plan tailored to their needs. With the onset of deregulation, alternative suppliers and consultants are now free to negotiate pricing options based on your tolerance for risk and ability to adjust energy usage according to market prices.

Resources:

http://www.papowerswitch.com/  (information from the PA Public Utilities Comission on the switch and what it means for you. FAQs are here: http://www.papowerswitch.com/frequently-asked-questions/

Type in your zipcode or fill out a form to see what is available in your area:

http://www.electricchoice.com/compare_prices.php

http://www.paelectricrates.com/

http://www.powerpennsylvania.com/index.html

http://www.papowerswitch.com/shop-for-electricity/

All Pennsylvania residents have the right to choose their electric supplier, but your ability to switch depends on where you live. Competitive offers may not be available in all areas.

8 Things to Look for When Choosing a Solar Installer

1. KNOW YOUR INSTALLER You want to make sure that your installer is using highly-trained staff.  How many installations have they done and how long have they been in business?  You want to make sure your installer will be around to fulfill their warranty commitment.

2. METALLIC FLASHINGS: It is critical that your solar installer is using a metallic flashing for each and every roof penetration. This is the only tried and true way to ensure a 25 year leak-free installation. Using a sealant like butyl or silicone as your only means of protection does not provide a mechanical seal.

3. LIGHTNING PROTECTION: The installation of anything metal on your roof increases the potential for lightning damage. Installing an upsized ground of #6 (as opposed to the NEC required #10) and surge suppression is good practice to help protect the valuable electronics you have just purchased. 

4. CHECK YOUR WARRANTY: Most installers offer a warranty on materials and craftsmanship. Standard warranties on inverters are 10 years. The warranties on the modules should be 25 years.  While the standard warranties for craftsmanship are 5 years, some installers offer a 10 year warranty. When evaluating the legitimacy of a 10 year warranty you must consider the equipment manufacturers longevity as well as how long the installer has been in business.

5. USE CONSERVATIVE SREC VALUES: When reviewing your financial analysis, what are the SREC values included in the proposal? A reasonable estimate, given average historical trades is $300 or less. If your proposal includes a value higher than that, you may be disappointed.   

6. COMPLIANCE WITH ALL STATE REGULATIONS: Solar projects in Pennsylvania with a value of $25,000 or more are eligible for PA Sunshine Grant funding.  Part of the grant includes an agreement to comply with Prevailing Wage Laws. Non compliance can result in severe penalties for the system owner.

7. CHECK YOUR PRODUCTION NUMBERS: When reviewing your financial analysis, what are the projected kWhs for your system? Multiply your system size in kW by 1200 to determine a reasonable kWh output. If your proposal includes a value much higher than that, it is incorrect. 

8. HIDDEN TAXES: Funds received from a PA Sunshine Grant are taxable and a 1099 is issued. Also, be sure that your installer pays PA Use Tax on all equipment for which they did not pay a sales tax.