Tax Rebates from Solar installations
PA SUNSHINE PROGRAM IS HERE!!!
The long-awaited PA Sunshine Solar Rebate Program opens on Monday, May 18th, 2009.
Residential rebates will be available for Photovoltaic (electric) installations at a rate of $2.25/watt for up to 10 kW.
SECCO, INC. is an Approved Contractor!
Rebate recipients must use a state-approved contractor. Applications for rebate reservation must be submitted, along with required documentation and an application fee. SunGenuity will be completing all required paperwork and submitting it for our customers. The state will approve the rebate and reserve those funds for you, to be paid when the installation is done and inspections are completed. With the Federal Tax Credit of 30% and the new PA Solar Rebate Program, NOW is the time to make the move to Solar!
If you have already received this information and have been waiting for the rebate program to finalize a contract or schedule your site assessment with us, NOW is the time to move ahead!
Federal
Residential Solar Tax Credit
The Emergency Economic Stabilization Act of 2008 included an extension of the federal tax credits for renewable energy installations. Extended through 2016, residential solar electric (PV) installations are eligible for a 30% federal tax credit, for systems commissioned after December 31, 2008. The American Recovery and Reinvestment Act of 2009 upgraded the tax credits for Solar Hot Water and Small Wind investments. Solar Hot Water and Small Wind installations now qualify for a full 30% federal tax credit, through 2016.
The tax credit is calculated based on the individual’s cost to install the system. Expenditures include labor costs for the onsite preparation, assembly, or original installation of the system and for piping or wiring to interconnect the system to the dwelling. Consumers who receive other incentives are advised to consult with a tax professional regarding if there is an impact to their federal tax credit. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.
To be eligible for the full credit, a system must be "placed in service" or activated on or after January 1st of the tax year the credit is claimed. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. To find out more details, click here.
State
Keystone Home Energy Loan Program (Keystone HELP)
Funded by the Pennsylvania Treasury Department and administered by AFC First, the Keystone Home Energy Loan Program (HELP) is a low-interest loan program for homeowners to make their homes more energy efficient. Many efficiency improvements are covered by the program, including improvements to heating and cooling systems, upgrades to windows, doors, insulation and siding and upgrades of lighting and ceiling fans. In addition, this loan covers the purchase and installation of solar, wind and geothermal systems.
Most loans have a 10-year repayment term with a 8.99% interest rate, but some low-income participants may qualify for a lower 6.99% interest rate. There is no pre-payment penalty, equity requirement or outside fees.
Net Metering
In Pennsylvania, investor-owned utilities must offer net metering to residential customers that generate electricity with systems up to 50 kilowatts (kW) in capacity. Systems eligible for net metering include those that generate electricity using photovoltaic's (PV), solar-thermal energy, and wind energy (in addition to other systems).
Net metering is achieved using a single, bi-directional meter that can measure and record the flow of electricity in both directions at the same rate. Any customer net excess generation (NEG) will be credited at the utility's retail rate and carried over to the customer's next bill during a 12-month period.
The PUC adopted net-metering rules and interconnection standards for net-metered systems and other forms of DG in 2006, pursuant to the Alternative Energy Portfolio Standards Act of 2004.
Federal Legislation
The New Economic Stimulus Bill has ramifications for solar installations. The Federal Government is offering homeowners a 30% Federal Tax Credit. This is a dollar for dollar reduction on any money owed on Federal Taxes and can be used over two years. This program is set up through 2016. Commercial (for-profit businesses only) are offered a 30% Federal Tax Credit or Grant. The Federal Tax Credit (ITC) is good until 2016 and the bill allows the tax credit to be used to offset both regular and alternative minimum tax (AMT). The five-year accelerated depreciation allowance for solar property is permanent and unaffected by passage of the eight-year extension of the solar ITC. If a company elects they can take a grant instead. This is also a 30% grant but must be placed in service in 2009 or 2010, or placed in service by the specified credit termination date, if construction began in 2009 or 2010. The Treasury will need a few months to set-up this program but has promised to reimburse businesses within 60 days of receiving their application and is looking to July 2009 to open the grant program. The rebates are not treated as income. The systems are eligible for a bonus 50% depreciation if placed in service during 2009.
Energy Policy Act Extension
Latest News form the Governor of Pennsylvania: the Sunshine Act has passed and Sungenuity is an official Commercial Installer in the Local Harrisburg Area, click here to find out more.... If you choose to have a commercial solar installation either solar electricity, solar heating, or solar water heating, we take care of the forms and paper work behind the solar grants for the the Sunshine Act of Pennsylvania. View the PA Sunshine Act Report Here. Or Click on the PAkeystonehelp.org icon. Click Here for the Application.
The Energy Policy Act of 2005 (EPACT 2005) was signed into law by President Bush on August 8, 2005. This was the first Federal major support for solar energy in 20 years, including a 30% tax credit for installing solar energy systems that has resulted in strong growth in solar energy over the last two years.
The newly introduced "Securing America’s Energy Independence Act" is bi-partisan legislation (introduced in the House as HR. 590 and the Senate as S. 590) that would make America’s energy future better by making solar energy more affordable. Specifically, the bill extends the 30% federal investment tax credit for another 8 years. (view the Securing America’s Energy Independence Act), following deliberation by its policy committee and board, fully supports the extension of this tax credit for another eight years. This extension is critical to developing the solar industry and the technology that will foment a rapid and full scale transition toward an appropriate and supportable energy path.
The current energy policy of the United States is unsustainable in either the long or short-runs. We need to turn the country around, and the Securing America’s Energy Security Act will ensure that solar energy becomes a major source of power in the years to come. ASES, therefore, recommends the following when communicating with your Senators and Representative.
Bottom Line:
1. The nation needs a bold, dynamic and sustainable energy policy—a policy that supports and encourages the development and commercialization of sustainable energy sources like solar, wind, geothermal, biomass. It must also be a policy that supports reducing the demand for electricity, heating and cooling energy and liquid fuels.
2. To continue policies that accelerate our nation’s transition to renewable energy by extending the 30 percent solar tax credit to 2015 by co-sponsoring legislation that accomplishes this, such as the "Securing America’s Energy Independence Act. Our need at this time is to encourage co-sponsors to sign onto this bill, "Securing America’s Energy Independence Act".