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| SUBSIDIES for commercial solar hot water as of May 27, 2009:
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1) 30% Federal Investment Tax Credit: During 2009 – 2010 for profit business owners with fewer than 100 employees may opt to take the 30% Federal Solar Tax Credit as tax free grant check from the government. More information at http://www.dsireusa.org/
2) PA SOLAR ENERGY PROGRAM: This is a new program that is currently accepting applications for grants (up to 50%) and low interest loans for larger solar (including solar hot water) projects for businesses, non-profits, and school districts and government agencies. This entails some grant-writing efforts from the customer. More information at http://newpa.com/
3) PA Sunshine Solar Program: is another new state program that will provide $100 million in grant funding to help fund solar projects for homeowners and small businesses in Pennsylvania. On April 13, 2009, 3 representatives from Rushforth Solar joined a delegation for the Commonwealth Financing Authority (CFA) meeting in Harrisburg where the CFA unanimously approved bond money for the Sunshine Program. The DEP has announced that the Sunshine Program was opened for solar thermal rebate applications on May 22, 2009. The first 1,500 eligible solar thermal projects can get rebates for 25% up to $20,000. After that, rebate levels drop to 20% for the next 1,500, 15% for the following 1,500, then 10% for the last 1,500 assuming the $100 million has not be used up. More information at http://www.depweb.state.pa.us/
4) 5 YEAR ACCELERATED DEPRECIATION: Basically in year 1, 60% of the cost of the solar system (after 30% tax credit) may be written off. In years 2 through 5, 10% of the cost (after 30% tax credit) may be written off. More information available at: http://www.dsireusa.org/
Rushforth Solar, LLC., has compiled this information from external sources that are deemed reliable. We do our best to keep the information updated but we recommend that you use the provided link to the official website to confirm that the program is still in effect. We also recommend that you discuss any tax advantages with your accountant.
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| Dollars and Cents: |
| At right is a chart (click to enlarge it) showing a 79% drop in natural gas use after installation of our solar hot water system along with a high efficiency hot water heater on a 16 unit apartment building. This translates to natural gas expenditures dropping from approximately $4,200 per year to $1,000 per year. |
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| Increase in Net Operating Income: |
| The annual gas savings and increase in NOI are approximately $3,200 per year. |
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| Increase in Property Value: |
| It is estimated that the value of this building increases about $14 for every $1 increase in Net Operating Income. Using a 14 multiplier (7.14% cap rate), the $3,200 increase in NOI translates to a $44,800 increase in property value, which well exceeded the installed cost. |
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| Decreased exposure to energy price increases. |
| When fossil fuel prices go up, sunlight remains free. |
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| The letter to the right was from the pleased owners of the subject apartment building. |
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