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| SUBSIDIES for commercial solar hot water:
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| (last updated September 4, 2009) |
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/ & http://www.treas.gov
2) PA SUNSHINE PROGRAM: is a relatively 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/energindependent/cwp/view.asp?a=3&q=545926
& http://www.depweb.state.pa.us
3) PA SOLAR ENERGY PROGRAM: This program 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. See PA Solar Energy Program guidelines available at: http://newpa.com/find-and-apply-for-funding/alternative-energy-funding/index.aspx
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/incentives/incentive.cfm?Incentive_Code=US06F
5) PHILADELPHIA ENERGY REBATE: $400,000 in funding available on a 1st come
1st serve basis: The City of Philadelphia is providing a 50% match, up to
$10,000, for investments in energy improvements such as structural retrofits
and energy efficient processes/ equipment replacement. The program is
administered by the Commerce Department and is for small businesses or
commercial properties. Project must result in 20% reduction in energy
consumption, and project must pay for itself in 10 years before any
subsidies are applied. (most solar applications unfortunately will not meet
that last requirement, but a high water use situation, where solar hot water
is packaged with a high efficiency water heater replacement, the 10 year
payback may qualify.
For more info see: www.phila.gov/business and click on Finance and
Incentives or http://business.phila.gov/Documents/Energy_Rebate_Application.pdf
or contact Jeremy Thomas (215) 683-2153.
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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