June 2009 Archives

Renewable Energy-Related Legislation and Loan programs in Minnesota

Austin Public Utility started its Solar Choice Program in Minnesota to help state people installing photovoltaic solar arrays since 1st October 2005. In order to get the incentive payment from Austin Public Utility, the solar arrays must be connected to its electrical distribution system. The incentive will be provided based on the system's production. Systems using Renewable technologies like photovoltaic are accepted. Various sectors are eligible to apply including industrial, commercial, agricultural, residential, institutional etc. every person making a purchase of solar utility will be contributing to the solar utility producer and thus the total amount contributed to each utility will be calculated. Depending on the amount earned by its purchases each producer will be given an incentive up to $1 per kWh. This program is not available for the people who want to back-up their power generation at home or business using renewable energy sources.

According to Minn. Stat. § 216C.41, the Minnesota Renewable Development Fund started offering 1¢ to 1.5¢ per kWh against electricity produced through various renewable energy resources like biomass, hydroelectric, wind, anaerobic digestion etc. in order to receive the incentive, the hydro facilities must be located at the dam site. Since May 2007, farms using anaerobic digesters to produce gas are eligible to receive the incentive. This makes it very much clear that the farm was no longer required to produce electric from the gas to receive the incentive. But, the amount paid through this incentive has not been calculated for anaerobic digesters.

According to Minn. Stat. § 272.02 enacted on 18th May 2002, the value added by solar systems is exempted from the real property taxation. Wind energy systems are also exempted from the state's property tax. But the property on which the system is installed is not exempted from states tax. Since 2002, all large wind-energy systems received a production tax. Systems generating energy greater than 12 MW were charged 0.12 cents per KWh and those generating between 12 MW and 2 MW received 0.036 cents per kWh. Various systems with a capacity less than 250 kWh are exempted from the tax. According to Minn. Stat. § 272.029 enacted in 2006, the revenue generated from the tax is distributed to local taxing districts. According to Minn. Stat. § 272.028 a local government can negotiate a lower tax to promote wind or solar development.

According to Minn. Stat. § 297A.67 all solar systems which were purchased after August 2005 were given 100% sales tax exemption. Eligible renewable technologies are solar space heat, solar water heat and photovoltaic. Customers from residential and commercial sectors are eligible to apply for this sales tax exemption. No expiration date was implemented for this incentive.

In 2007 Minnesota legislature started the Renewable Energy Equipment Grant Program to fund installation of various systems. Eligible renewable technologies are biodiesel and solar space heat. Only families having low income are eligible to apply for. A maximum amount of $4,700 can be offered under this program. The applying system must be standardized by the Energy Assistance Program. And each grant will associated with a weatherization project. This renewable and conservation energy program is mainly aimed at giving maximum benefit to the low income families.

According to Minn. Stat. § 41B.043 enacted in 1995, Minnesota Department of Agriculture started Agricultural Improvement Loan Program in collaboration with Minnesota Rural Finance Authority. Under this low interest loan program, farmers can avail loans for improvements to their agricultural facilities. Wind energy systems with a capacity of 1 MW are eligible under this loan program. The loan is made available by various financial institutions under RFA. RFA has more than 400 such financial institutions under a Master Participation Agreement. RFA has limited its share to 45% of the principle or $200, 00 whichever is less. Since September 2008, the interest is lowered to 5.5%. The person applying for the loan must also be the owner of the system and must not have a total net greater than $398,000.

The Minnesota Housing Finance Agency started its Home Energy Loan Program to offer low interest loans to all Minnesota homeowners. This program is administered by the Center for Energy and Environment Financial Resources. The loan must be applied in conjunction with various home improvements. Eligible renewable technologies include building insulation, water heaters, boilers, furnaces etc. But the program administer may allow some custom improvements under special circumstances. The applicant must be having a residential property for a single family and 49% of it can be used for business. The borrower must have purchased the property. A maximum amount of $10,000 can be availed through this program. The loan will be sanctioned with 6.25 APR and the repayment term is kept at 5 years.

Minnesota Housing and Finance Agency (MHFA) started Minnesota Energy Loan Program under which all single family homes, duplexes and quads are eligible to avail low interest loans. This program was implemented for the improvement of renewable energy initiatives. The borrower must have an annual income below $91,000. An amount in the range of $2,000 to $35.000 can be availed through this loan. A fixed interest of 6.25% is charged with a repayment period in between 1 to 20 years which is decided based on the amount of the loan. The applicant should apply to Neighborhood Energy Connection (NEC) to get an energy audit done.

All Minnesota rental property owners are eligible to avail the Rental Energy Loan. This energy loan is provided to increase the energy efficiency of the buildings. The loan borrower must have at least one third interest in the property. An amount in the range of $5,000 to $10,000 can be availed through this loan and interest rate charged will be 4% APR. The repayment period is 1 to 5 years, but there is no penalty for prepayment.

Under Residential Energy Conservation Loan Program started by Dakota Electric and Anchor Bank, customers are eligible to avail loan for any kind of energy efficient improvement in their home. An amount in the range of $1000 to $5000 can be availed with an interest of 7.99%. Repayment period is kept at 5 years. The rate can be adjusted for any further loan. Various eligible efficiency technologies under this utility loan program include lighting, doors, windows etc.

Minnesota Valley Electric Cooperative started Energy Conservation Loan Program through which low interest loans can be availed by residential customers. The funding can be used for energy efficient improvements in their homes like weather stripping, thermal windows, heat pumps, electric water heaters etc. This funding can only be used for replacement. A maximum amount of $3,000 with an interest of 5% can be availed through this program.

Customers of Stearns Electric Association are liable to get Energy Resource Conservation (ERC) loans. These loans are available at low interest of 5%. An amount up to $3,000 can be availed through these loans. The funding can be used for energy improvement in homes or businesses. The repayment period is set at 5 years. Various eligible technologies include water heaters, heat pumps, equipment insulation, air sealing etc.

Rebate programs

Solar Hot Water Rebate Program
All the residents of Minnesota all eligible to avail rebates for solar hot water heaters under Solar Hot Water Rebate Program run by the Minnesota Office of Energy Security (OES). These are available for new systems and also for repairing of faulty ones. The rebate level is fixed at $30 per square foot of net aperture. The rebated systems must pass various equipment, warranty and installation requirements. The OES will inspect and monitor the systems so that it meets the rebate requirements. Under solar rebate program an amount of $700,000 is allocated for various rebates. The owner must install the system within one year after getting the rebate confirmation.

Solar-Electric (PV) Rebate Program
Xcel Energy has funded Solar-Electric (PV) rebate program under the administration of the Minnesota Office of Energy Security. Under this program an incentive of $2 per watt is provided. The maximum amount is capped at $20,000 per system. Only 5 rebates per participation are allowed. And moreover rebate can not be provided with Xcel Renewable Development Fund Support. The program has set an aim of installing 500 kW or grid connected PV systems in the state of Minnesota. Since January 2004, all electric customers in Minnesota are eligible to apply for this program.

Great River Energy (28 Member Cooperatives) - Solar-Electric (PV) Rebate Program
Every customer of Great River Energy (GRE) is eligible to avail a rebate of $2,000 per kW for grid connected solar electric systems. The rebates maximum amount is capped at $4,000 per customer. This rebate offer can also be availed in conjunction with state's Solar Electric Rebate through which an additional $2,000 per kW can be availed. In order to qualify, the installation completion deadline must be met and it will be set by the Minnesota Department of Commerce. The rebate is available on a first come first served basis. Systems with a capacity of lower than 1 kW are not eligible to apply for. Each system cannot avail a total rebate of more than $20,000.

Alexandria Light and Power - Residential Energy Efficiency Rebate Program
All customers of Alexandria Light and Power (ALP) are eligible to avail various rebates like Energy Star Appliance rebates, Energy Star Residential Water Heater rebate etc. eligible appliances include dishwashers, central AC, heat pump, clothe washers etc. also a rebate in the range of $200 to $350 can be availed for hot water heaters. A rebate of $1.5 per light bulb can also be availed in case of a purchase of 10 or more compact fluorescent light bulbs. Application for the rebate should contain a copy of the original dated sales receipt.

Hutchinson Utilities Commission - Residential Energy Efficiency Program
Customers of Huthinson Utilities Commission (HUC) can avail a rebate of $500 in case of energy conservation improvements to their homes. Various appliances are eligible for the rebate like boilers, heat pumps, clothe washer, water heaters etc. the incentive amount will be decided based on the appliance. Equipments must pass the requirement criteria set by the program. The application is processed by first come first served basis. And the applicant is required to submit an original dated sales receipt along with the application for the rebate.

Renewable Energy-Related Legislation and Loan programs in Pennsylvania

State Legislation
In July 2008, $80 million were sanctioned for loan and grant program in Pennsylvania to facilitate the solar energy technologies. This funding came from the $650 million alternative energy bill signed by the Democrat Governor Edward Rendell, this initiative was supervised by the Department of Environmental Protection (DEP) and the Department of Community and Economic Development (DCED) under the direction of Commonwealth Finance Authority (CFA). Various business sectors are eligible to apply for this loan program including profit or non-profit organizations, schools, local governments and economic development organizations.

According to the Special Session H.B. 1 of The General Assembly of Pennsylvania, all the facilities that utilize waste coal, alternative Biomass, solar energy, wind energy and geothermal energy come under the title "Alternative Energy Production Project". Those who are entitled to be granted with this loan for development must fall under these categories:

1. Systems using renewable energy sources as their source of energy
2. Systems that install equipment to facilitate or improve energy conservation and efficiency.
3. Solar electric or solar thermal installations.

The applicable system must have a lifetime of at least 4 years. The fund can be granted for various parts of the whole project including

1. Infrastructure development and land acquisition for necessary project construction
2. Preparation of the land for the project
3. Renovation of the infrastructure to facilitate the ongoing project
4. Purchase of the necessary equipments for solar systems
5. Permit fees and also the administrative costs of the project.

The applicant must provide proof for availability of matching funding equal to the granted amount. Moreover for Solar thermal system, there is one more requirement for the SRCC-100 rating or other comparable rating from DEP. All the systems must be bought and installed new and UL-listed.

According to 24 P.S. enacted in 13th July 2005, all new schools must be built efficiently under the Governor's Green Government Council of Pennsylvania. Under this program a part of the soft costs of designing a green building will be provided. The amount that will be granted is capped at $25,000. The funding will cover modeling costs, consultancy fees and documentation costs for LEED-NC certification. An amount equivalent to 10% to the total cost of the building or renovation can be availed under this incentive.

State Funding
Funding is availed in several different flavors. As of April 2009, Loans can be secured with an interest of 5% and repayment tenure of 10 years for equipments and 15 years for real estate. Various manufacturing facilities can avail an amount up to $35,000 through this loan and for various energy production projects it is capped at $5 million. All loan applications will be evaluated by the authorities on a case by case basis.

State Grants
Funding can also be availed through Grants. Manufacturing facilities can get an amount up to $5,000 through these grant schemes while, various energy production facilities can take up to $1 million. Various R&D projects or studies on Renewable Energy System are also eligible for a grant of 50% of the cost or $175,000 whichever is lesser. Generally CFA considers various projects eligible for grants where the contract is for less than 10 years rather than loans. The applicant must produce Solar Renewable Energy Certificates (SRECs) during the process to be considered eligible for the loan or grant. Not only this, loan guarantees are also available under this program. This funding can be used in case of financing default on the applicant's part. An amount equivalent to 75% of the deficiency can be availed through this program. The maximum amount allocated for loan guarantees is $30 million and the repayment tenure is kept at 5 years for all applicants.

State Loan Programs

Pennsylvania Energy Development Authority
The Pennsylvania Energy Development Authority (PEDA) provides various periodical financial incentives to energy projects in the field of solar thermal electric, photovoltaic, renewable transportation fuels, fuel cells, geothermal heat pumps and coal mine methane. PEDA's April 2010 solicitation offers $16 million under this incentive program. All the applicants are required to produce some documented cost share or matching funds. PEDA is willing to accommodate 30 projects under the current budget.

• Program Budget: $16 million
• Maximum Incentive: $1 million

Pennsylvania Energy Harvest program
To preserve land quality, reduce air pollution and provide opportunities for the agricultural community, the Pennsylvania Department of Agriculture and the Pennsylvania Department of Environmental Protection (DEP) started the Pennsylvania Energy Harvest program in 2003. Under this program financial incentives can be availed for various projects which make use of renewable energy technologies. Till 2007, $26 million was awarded under this program as financial incentives. Projects which do not concern environmental or energy concerns are not eligible to apply for. In April 2008 solicitation of $5 million is offered and new Request for Proposal is issued during the spring of each year.

Keystone HELP Energy Efficiency Loan & Rebate Program
Homeowners in Pennsylvania are eligible to get financial incentives under the Keystone HELP Energy Efficiency Loan & Rebate Program. This program is administered by the Pennsylvania Treasury Department, the Pennsylvania Housing Finance Agency and the AFC First Financial Corporation. To become eligible homeowner must have an annual income of less than $150,000 and they can apply for only one loan every fiscal year. Various types of secured and unsecured loans like Energy Star Loans, Advanced Performance Energy Star Loans, Renovate and Repair Energy Star Loans and Whole House Improvement Loans are available under this program. With $17 million of budget the loan portion for this program remains open.

• Program Budget: $17 million
• Maximum Incentive: $35,000

Small Business Pollution Prevention Assistance Account Loan Program
Under Small Business Pollution Prevention Assistance Account Loan Program various small businesses in Pennsylvania having 100 or less full time employees are eligible to avail low interest loans for projects implementing renewable energy technologies. This program started in 1999. And it has sanctioned loans for more than $9.3 million.

• Maximum Incentive: $100,000
• Terms: 2% fixed interest; Loan term of 10 years

Investor-Owned Electric System Funding

Metropolitan Edison Company Sustainable Energy Fund
The Metropolitan Edison Company Sustainable Energy Fund was sanctioned in the year of 2000 by First Energy and an amount of $5.7 million was made available for immediate grants. Later due to the merger between GPU Energy and First Energy an additional amount of $2.5 million was added to this program. Though under this Local Grant program no eligible efficiency technologies have been specified, but various eligible Renewable include Solar Water Heater, Solar Thermal Electric, Passive Solar Space Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaic, Biomass and Fuel Cells. The fund can be used for various purposes including development of renewable energy technologies, energy conservation, sustainable energy efficiency, improvements of environment in the company's territory.

• Maximum Incentive: $25,000

Penelec Sustainable Energy Fund
First Energy also establishes the Penelec Sustainable Energy Fund in 2000 under which an amount of $9.1 million was sanctioned for local loans and grants. The entire fund is administered by the Community Foundation for Alleghenies in Johnstown, Pennsylvania. Two third of this fund is made available for venture capital and business lending and one third for environmental grant making. The fund is sanctioned mainly to facilitate the development of renewable energy technologies and sustainable energy business.

Local Loan Programs

Sustainable Energy Fund
Sustainable Energy Fund (SEF) is an organization that grants limited number of loans in the PPL Territory. Eligible sectors are industrial, commercial, local government and non-profit. The amount which can be sanctioned will greatly depend on the project. The fund has been released with the following purposes: financing sound energy solutions for businesses, manufacturing facilities and teacher training under CFL Energy education. The SEF was a direct consequence of the merger of PPL Inc. and the PUC. An amount, greater than $25 million was made available under this program. The organization can offer loans from $35,000 up to $750,000.

Sustainable Development Fund Financing Program
Sustainable Development Fund Financing Program was established by the Pennsylvania Public Utility Commission in the final order of the PECO. This program is administered by the Reinvestment Fund, Inc. (TRF). After the PECO Unicom/Energy merger SDF had additional funding later. Currently, the total amount of funding available is $31.8 million. Various energy efficiency technologies like Heat pumps, Lighting, Air Conditioners etc are eligible to apply. Other eligible renewable technologies are photovoltaic, solar space heat, solar thermal processes, geothermal heat pumps etc. the fund can be availed in the form of subordinated debt, commercial loans, equity financing and royalty financing. The 2009 Program Plan had the expected awarding up to $4 million in loans, equity investments and other financing.

West Penn Power Sustainable Energy Fund
To facilitate the use of renewable energy and clean energy in West Penn Market, the West Penn Power Sustainable Energy Fund (WPPSEF) has been established. Solar system manufacturers, distributors and service companies can avail commercial loans under this program.The loan will be offered at an interest below the rate available in market.

According to 72 P.S enacted in 29th November 2006, wind turbines and all related equipment are exempt of tax assessors. The equity evaluation of the property is done by the capitalized value of land-lease agreements. The WSPPSEF's updates in the year 2010 show a focus on energy conservation of residential single-family and multi-family moreover keen interest is shown for commercial biomass heat projects.

Utility Loan Program

Adams Electric Cooperative - Energy Efficiency Loan Program
Adams Electric Cooperative started offering financial incentives to its residential customers under the Energy Resource Conservation (ERC) and Supplemental Loan Program. Fund will be sanctioned based on the credit status of the applicant.

• Maximum Incentive: $25,000
• Terms: Rate: 5%. Payment up to 7 years

Rebate Programs

PA Home Energy (West Penn Power) - Home Efficiency Incentives
To let Pennsylvania consumers reduce home energy use the West Penn Power Sustainable Energy Fund (WPPSEF) has started the Pennsylvania Home Energy program and only customers of West Penn Power (Allegheny Energy) are eligible to apply for this program. It is expected to expand the scope of this program. Normally incentives are available under two programs - Energy Star Homes program and Home Performance with Energy Star program. Energy Star program focuses on saving utility bills and in 2009 alone saved $17 billion.

PA Home Energy operates hand in hand with the Keystone Home Energy Loan Program (Keystone HELP) so that homeowners who have adopted Energy Star standards should get low-cost financing. An amount in the range of $200 to $1000 can be availed through this program. New homes certified by the Home Energy Rating System (HERS) index are eligible to avail increased incentives.

Pennsylvania Sunshine Solar Rebate Program
Under this rebate program all Pennsylvania residents using Photovoltaic and Solar systems are eligible to avail funding. This program started in May 2009 under the Pennsylvania Department of Environmental Protection (DEP). A total amount of $100 million is available under this program.

The system must be installed in the applicant's home and it must be his primary residence in Pennsylvania. No repairing cost will be supported under this program. One prerequisite for submitting the application indicates that applications should be submitted by an official installer on behalf of the applicant.

Renewable Energy-Related Legislation and Loan programs in New Mexico

According to N.M. Stat. § 7-9G-2 enacted in 4th July 2007, all commercial projects in the field of Solar thermal electric, Geothermal electric and Photovoltaics are eligible to avail Advanced Energy Tax Credit(Corporate). All projects approved by the New Mexico Environment Department can get a 6% credit against corporate, withholding or compensating taxes. The eligible generation plant costs under this program includes development and construction expenses, site assessment and engineering, design, carbon dioxide capture, treatment, compression, system acquisition etc. And amount of $60 million was sanctioned under this program. According to SB 237 enacted in 3rd September 2009, Geothermal and Photovoltaic electric systems installed after 1st July 2009 with capacity of 1 megawatt or greater can also apply for the tax credit. But it shouldn't exceed the maximum name-plate capacity of net 700 megawatts. Carryover provision for any sort of unused credit was set at 10 years. And if the claimed amount is more than the taxpayer's liability then it must be carried over for the next 5 years. All the decisions are made by New Mexico Taxation and Revenue Department and so an applicant must file for a tax credit after getting certified by the same department. And after the eligible generation plant costs have incurred, the credit must be filed within 1 year.

According to N.M. Stat. § 7-2A-19 enacted in 7th January 2002, all commercial and industrial systems generating electricity from Solar Thermal power, wind, Biomass, anaerobic digestion, Solid Waste are eligible to avail Renewable Energy Production Tax Credit (Corporate). The eligible system must start producing electricity on or before 1st January 2018. The qualified energy generator will be liable to get a tax credit of 1 cent per kilo-watt-hour of the first 400 thousands megawatt-hours in the taxable year. Solar light or solar heat driven generators are limited to get a tax credit for the first 200 thousands megawatt-hours of electricity produced during the taxable year. The amount which can be credited under this tax credit varies greatly based upon the taxable year. A qualified taxpayer is eligible for the renewable energy production tax credit for ten consecutive years. The amount credited to the taxpayer will be deducted from his New Mexico corporate income tax liability for the taxable year. If the amount is more than his corporate income tax liability and the qualified energy generator first produced electric before 1st October 2007, then the excess amount can be carried forward for a period of 5 taxable years. And if it is after 1st October 2007, then the excess amount will be refunded to the taxpayer.

According to N.M. Stat. § 7-2A-21 enacted in 4th January 2009, all new sustainable building constructions in New Mexico or renovation of an existing building in New Mexico into a sustainable one, are eligible to avail Sustainable Building Tax Credit (Corporate). This tax credit is available in Residential, Commercial and multi-family residential sectors. The taxpayer must be the owner of the building at the time when it gets certified by the LEED green building rating system or the build green New Mexico rating system. The amount that can be credited will be calculated based on the certification level and qualified occupied square footage in the sustainable building. Taxpayer must apply for the certification from the departments of energy, minerals and natural resources. The total amount of sustainable building tax credits should not exceed in any year an average amount of $5,000,000 for commercial buildings and $1,250,000 for sustainable residential buildings. The certification level must be submitted to the taxation and revenue department to become eligible for the tax credit. After the document granting sustainable tax credit has been issued, it can be sold or transferred and the department must be notified of the same within 10 days. If the amount to be credited is more than the taxpayer liability then the excess amount can be carried over for up to next 7 years. According to SB 291 of 2009 nonprofits are also eligible to apply for the certification and transfer the tax credits or even sell them. Moreover, entities who do not have enough taxes to become eligible for the tax credit, can also sell it to other parties that can pay the taxes. This information was independently researched and published for Solar Power Authority.

According to N.M. Stat. § 7-9J-1 enacted on 4th March 2007, all alternative energy products, vehicles or components are eligible to get Alternative Energy Product Manufacturers Tax Credit. Alternative energy products or vehicles include fuel cell system, renewable energy system or any component of an alternative energy vehicle. The taxpayer must have made the purchase of manufacturing equipment after 1st July, 2006 and it must be certified by the department. Various renewable energy systems eligible for this tax credit are solar thermal energy system, photovoltaic energy system, biomass and wind energy system, battery cell energy system etc. the taxpayer must have employed at least one full time employee for at least one year prior to the day on which the tax credit was claimed. An amount of not more than 5% of the total expenses can be claimed.

According to SB 237 enacted on 3rd September 2009, all solar thermal electric plants and associated energy devices can get Advanced Energy Tax Credit (Personal). Under this program 6% tax credit can be clamed against gross recipients or withholding taxes. Photovoltaic or geothermal electric generators were also added by SB 237. The maximum tax credit amount cannot exceed an amount of $60 million. And unused tax credit can be carried forward for the next 10 years.

According to NM Stat. § 7-2-18.14 enacted on 3rd June 2006, a taxpayer purchasing and installing solar thermal system or photovoltaic system on or after 1st January 2006 can claim Solar Market Development Tax Credit. It will cover 30$ of the total purchase and installation costs. Eligible sectors are residence, business or agricultural enterprises in New Mexico. An amount up to $2 million for solar systems and $3 million for photovoltaic systems can be allowed by the department. Until the credit gets fully expanded it can be forwarded for next 10 years.

El Paso Electric in New Mexico started purchasing renewable energy certificate (REC) from all taxpayers in New Mexico who own photovoltaic systems capable of producing a maximum of 10 kilowatts. This way, homeowners can easily avail financial incentives to buy and install Photovoltaic systems. From March 2006, PNM also started purchasing RECs from New Mexico customers with a capacity of producing electricity up to 1 megawatt. Xcel Energy also purchases RECs for systems with a capacity in between 0.5 kilowatt and 10 kilowatt.

New Mexico State Government has gross receipts tax structure under which each business is taxed based on the total amount of transaction before deducting the expenses. So, revenue generated from solar systems for space heat, hot water or electricity is deducted from the gross receipts before calculating the tax.

Rebate programs

Central New Mexico Electric Cooperative - Residential Energy Efficiency Rebate Program
Central New Mexico Electric Cooperative (CNMEC) has started an incentive program under which all New Mexico residents who want to install renewable energy products in their homes can avail various rebates on the purchase made. The rebate can also be availed for replacement installments. To become eligible the applicant must belong to CNMEC's service area. An amount up to $70 can be availed through this rebate program for purchasing a renewable energy product. And extra $50 will be provided as bonus if the system has a timer or low-wattage element. And the applicant must make the claim for the rebate within 180 days of the purchase of the system.

Kit Carson Electric Cooperative - ETS System Rebate Program
Under this utility rebate program, Kit Carson Electric Cooperative has started incentive program for its New Mexico customers who are willing to install energy efficient cooling/heating equipment. Customers can also apply for various discounts available for Electric Thermal Storage (ETS) systems. The amount of rebate will be in the range of $900 to $3000 and it will greatly depend on the size of the system.

PNM - Commercial Energy Efficiency Rebate Program
This utility rebate program from PNM is applicable to only in commercial sector. Customers can increase the energy efficiency of their buildings through this incentive program. Eligible technologies under this rebate program are lighting, advanced evaporative coolers. Advanced evaporative coolers can avail incentives up to $500 and for lighting it will decided based on the lighting type.

Renewable Energy-Related Legislation and Loan programs in New Jersey

New Jersey Board of Public Utilities (NJBPU), a regulatory authority responsible for adequate and safe utility services for New Jersey residents made extensive revisions in New Jersey's renewable portfolio standard (RPS), in April 2006, which is considered as one of the most hard line standard in US. According to this RPS every supplier/provider in New Jersey needs to include 20% qualified renewable energy sources by 2021 in the electricity it sells. After the revision the requirement of "Class I" and "Class II" renewable energy sources was increased by a significant amount and the same happened with solar electricity also. It is estimated that New Jersey will need 2.12% which is equal to 1,600 megawatts (MW) solar electricity by the year of 2021.

Clean energy attributes of the electricity generated from a solar system is characterized by Solar Renewable Energy Certificate (SREC) which is a tradable certificate. After generating 1 MWh solar electricity, a solar system gets SREC which can be sold irrespective of the power. Main aim of this SREC program is to provide means of clean and emission free solar power to the individuals and businesses.

New Jersey Board of Public Utilities is responsible for all the administrative tasks related to SRECs. SREC program tracks solar production from every generator installed in the State and also issues SRECs. According to New Jersey's Renewable Portfolio Standard (RPS) every electric supplier is required to purchase SRECs annually. It was launched in June 2004. Market availability and the price of Solar Alternative Compliance Payment (SACP) mainly determine the price of SRECs. SACP plays a role of cap value to SREC if electric suppliers fail to meet the standards of RPS and consequently obtaining enough SRECs.

Since the commencement of SREC program in March 2004, there have been ambiguities in accreditation of SRECs. So there was an extension in the right to generate RPS compliant SREC in January 2008 under SB 2936. Non-net metered solar systems were permitted to secure a SREC. Once a supplier gets a SREC, he is liable to generate SRECs for 15 years being a part of the grid.

Monthly SREC generation for solar systems having capacity less than 10 kW, are calculated through an annual engineering estimation method. After obtaining a SREC, any supplier can offer a sale and all the SRECs are transferred to the qualified buyers. From June 2009, suppliers will have 2 years for trade purposes meaning an SREC can be used only for the year it was issued and the next year. Whereas SRECs issued before June 20009 can only be used for the year they were issued. In June 2009, there was an announcement of eight year schedule for the SACP and NJBPU is responsible to the SACP review each year. New Jersey Office of Clean Energy (OCE) has estimated the weighted average price of an SREC to be $467 per MWh which is much lower than SACP for a given year.

According to "Property Tax Exemption for Renewable Energy Systems" enacted in October 2008 industrial, commercial and residential renewable energy systems from local property taxes. Various renewable energy systems like solar PV, fuel cells. Sustainable biomass, hydroelectric, geothermal electric etc are eligible for this exemption. Moreover systems generating electricity from solar power like solar hot water are also eligible to apply for. First of all, the system owner has to go through a new assessment of their properties by a local assessor which will exclude the cost of the renewable energy systems. After one year he gets the certification, he will liable to avail an exemption. The New Jersey Division of Taxation and Department of Treasury are responsible for all the rules and regulation implementing this exemption. And the requirements needed by the system to meet the standards are developed by New Jersey Board of Public Utilities (BPU) and the Commissioner of Community Affairs.

All solar energy devices or systems which are designed for heating or cooling, or mechanical or electric power by collecting and transferring solar energy like solar water heater, solar thermal heater, passive solar space heater, photovoltaic, solar thermal process heater are eligible for the exemption from tax imposed under Sales and Use Tax Act of New Jersey State Government. The exemption is nearly 7% and all taxpayers including residential, commercial, public customers are liable to get.

The New Jersey Economic Development Authority (EDA) has developed The Edison Innovation Clean Energy Manufacturing Fund (CEMF) to assist manufacturing of energy efficient and Class I renewable energy products. The main aim of this program is to dominate the traditional sources of electric generation. Various grants (Tranche I) and loans (Tranche II) are funded to businesses running in New Jersey. The fund will be provided for both trends together or separately only for tranche II, but tranche I applicant must apply for tranche II also. Maximum amount that can be funded under this program is $3.3 million per project. Funding is available only in commercial and industrial sectors and can be used for project assessment and design, and project construction and operation. An amount up to $300,000 can be availed under project assessment and design grant, but it should not exceed 10% of the total CEMF requested. Under project construction and operation zero-interest loan the applicant can secure and amount up to $3.3 million and he has to commence the repayment from the fourth year of the approval of the loan. Various renewable Class I energy are eligible to avail this grant, like - solar, photovoltaic, fuel cells, tidal, harvested biomass etc.

There is a Home Performance with Energy Star Program available for all New Jersey homeowners to improve their houses' energy efficiency. This program is administered by New Jersey Board of Public Utilities (NJ BPU) and includes air sealing, installation of better insulation, HVAC improvements, radon and smoke improvements etc. the homeowner must get the work done by a BPI-certified contractor to be eligible for incentive. Mainly three types of incentives are provided for the followings - home energy assessment, air sealing improvements and installation of energy efficiency measure. This project has a budget of $12.5 million for the year of 2009.

Under New Jersey's Public service Electric and Gas (PSE&G) customers in all classes can get loans for photovoltaic systems. An amount covering 40%-60% of the actual cost of the system can be availed. Residential customers can secure this loan on a 10 year term and at an interest of 6.5%, whereas non-residential customers will get it at 15 years term with 11.11% interest.

Rebate programs

COOLAdvantage Program
This rebate is offered by the N.J. Clean Energy Program to improve the efficiency of renewable energy systems which mainly include heat pumps and electric air conditioners. This program is intended to improve the sale of the system and also the installation techniques. Eligible systems' energy efficiency is measured with the help of their EER, SEER or HSPF ratings. The rebate amount is to be shared in between the contractor and the customer. An amount of $100-$150 can be availed through this rebate based on the system's efficiency.

ENERGY STAR Homes Program
This program is a result of a joint venture by New Jersey utilities and the New Jersey Board of Public Utilities. A rating is provided to the building on a 100 points scale and to be considered for this program it should secure at least 85 points. Tough home owners from any part of New Jersey is eligible to get a Energy Star rating, but only home which are in the New Jersey Smart Growth areas can avail the incentives. Incentives are split into mainly three tiers - Tier I, II and III. An amount up to $2,900 can be availed for Tier I and for other ones there is no specific amount.

Energy Star Product Rebates
Under this State Rebate Program, the New Jersey Office of Clean Energy (OCE) provides incentives to the customers of Jersey Central Power & Light; PSE&G Electric, Atlantic City Electric and Rockland Electric Company for certain energy efficient home appliances like Dehumidifiers, Air conditioners, Lighting and Clothes Washers. Normally Air Conditioner Incentive is seasonal, but it is open for 2009. To be eligible for this incentive all the applying systems must be Energy Star Rated.

New Jersey Comfort Partners Program
Customers having an income of at max 225% of the federal poverty guidelines can apply for this incentive which is totally free of any charges. Energy education and counseling for usage is also provided. This program has an overall budget of $36 million for the year of 2009. The funding mainly comes from States System Benefit Charge (SBC).

New Jersey Customer-Sited Renewable Energy Rebates
This program developed by NJBPU provides funding in residential, commercial and industrial sectors. Various technologies including photovoltaic, biomass energy technology and small wind energy systems are eligible to apply for. From 2009, residential PV systems with 10 kW and non-residential PV systems with 50 kW are eligible for this program.

New Jersey SmartStart Buildings
This program run by New Jersey's gas and electric utilities and the NJBPU provides funding in almost every sector. It has a budget of $36,609,890 for the year of 2009. Financial incentives up to $500,000 per unit can be availed through this program. According to New Jersey Division of Taxation all industrial applicant must posses Tax Clearance Certificate to be considered for this program.

Maker Faire is all about making your own stuf. Say, a giant swing, or a robotic chariot pulled by an animatronic solar powered Obama? Maybe a 10 foot tall Van de Graaff Machine strong enough to kill your neighbor's annoying dog... It's all here and most of it's dangerous, but the hordes of youngsters running around don't seem to mind! The first thing my friend Dave and I did this year at Maker Faire was make our car fit into the tightest spot we could find. Heck no $25 parking, heck no large open empty space across the street! We're doing this the Maker Way.

But who really cares about the parking details right? unless of course the spot is covered by a solar charger or something... On to Maker Faire! This festival of quirky inventions, rides, music and fire has been going for several years now and each year it just gets bigger and better, we're talking 50K+ visitors. Makers are usually part artist and part engineer but all of them love sustainability and thus, solar. The sign below says REMAKE AMERICA, Building a Sustainable Future and it marks the entrance to this years Maker Festival in Northern California.

Here are several of this year's solar related "makes" that we spotted in and around the event. If we missed something don't hesitate to contact us and send a photo and description. Many of the descriptions and details shown below were taken directly from the project overview sheets at the event but if you have something to add, again, just ping us!

Doesn't he look happy? Yes, an overjoyed rollerskating Obama was leading the march. Or at least, a future half Terminator half Obama clone? This chariot would drive forward and greet visitors and then sit and rest as the roof mounted solar panel charged its aging battery pack. Last year the chariot was pulled by the Governator. As many solar connoisseurs know, solar powered trickle charge is one of the best ways to extend a battery's life.

Continuing along with the vehicle and mobility theme, we saw a custom made truck camper shell that folds down to reduce wind resistance. Great idea! The fiberglass shells stack together just like those cute little Russian made nesting dolls and each top has a solar panel that runs a tiny refrigerator inside. The truck is called the Quickup Camper and was produced by Jay Baldwin. It's a hand-made pickup truck based RV that is roomy, stable, handles well and gets 20 mpg at 70 mph. That's about double the fuel mileage that conventional RV designs get.

I asked Jay how much it cost and he explained that he wasn't really doing on-off sales, more looking for a producer partner. I probed a little more and he explained that a new Ford F150 single cab runs ~$15K right now (if you make a cash offer) and the camper cost ~$10K so the entire unit could run well under $30K. I was especially fond of how roomy and bright the interior was. It also seemed fairly rugged, combining the aerodynamic nature of a popup camper with the strength and durability of a conventional topper, minus the vulnerability of canvas fold-in siding.

One thing almost every maker seems to love is a good bike, and by that I mean a home built monster! Sometimes these contraptions are made of wood, sometimes metal, but they always seem to have a superpower. It's like a right of passage if you want to become a maker, you start by modding your own bike. We saw a three wheeler for grownups that could skid around corners at high speed, a stilt bike that lifted its riders to perilous heights and a motorcycle sized bigfoot with car tires and disk brakes. Our favorite of course was the Dual Motor eBike with its  tow in solar attachment shown below.

The dual motor electric bike features a solar powered battery charger constructed on a bike trailer that looks a lot like a utility dolly. The trailer reminds us of another favorite maker style project, the Bidwell Pusher. The neat thing about the Pusher is that it can be used separately from any normal bike; it's the equivalent of a super hero's cape, easy on easy off. Maybe a combination solar powered pusher is in order? Back to the dual motor bike at Maker Faire, this design is meant as a proof of concept that demonstrates various technologies including electronics, electric motors, and solar charging. The goal is to educate and inspire others to experiment and join the electric vehicle movement.

If you don't like riding by yourself then you'll love this next contraption, it's a solar touring bike for two! Thankfully the design is a tad less intimate than a normal tandem bicycle, and the cool yellow seats, caution tape and orange warning light keep cars at bay. Along with providing energy for movement, the solar panels on the front recumbent part of the bike keep riders shady and cool during hot sunny days. The bike design, with it's battery towing concept, is reminiscent of another one of our favorite gadgets, the Solar Taxi. The recumbent bike is designed to accommodate two riders up to 200 miles per day entirely powered by the sun. Clever use of a geared hill-climbing motor and a salient cruise hub motor has allowed it to tackle mountain and other difficult terrain.

Jumping back into the world of cars, we found a couple mini sized neighborhood vehicles that had attached solar for charging. The one directly below was designed by high school students at the Latino College Preparatory Academy in East San Jose. It uses concentrated solar collectors with flat mirrors that track the sun to boost the energy output of the photovoltaic cells. I must have been looking a bit worn out and dirty after walking around all day because the guy in the car seems to be offering me money from his wallet?

Last but not least is a sun powered radio. Now I know what you're thinking, "I only listen to the radio at night outside the house of my unrequited love!" well, a solar powered radio probably won't work, even with a full moon, but for everyone else out there this next maker gadget should do just fine.

The solar radio exhibit was designed to show the direct connection between the sun, solar energy, and electrical devices. Again, inspiring youngsters to get involved and start making! The four rows of mirrors are aligned to focus on a given spot and if you turn them, the radio starts to fade and eventually shut down. Similarly, if you cover the solar panels with your hand, the radio starts to lose quality and fade out. The dude eating popcorn is simply mesmerized... ps. everyone eats kettle corn at Maker Faire.

pps. the movie reference above is from Say Anything, a scene featuring John Cusack holding a boombox over his head playing Peter Gabriel's "In Your Eyes". He is trying to win the heart of the character played by Ione Skye. Had he been using a solar radio, he definitely would have impressed her... Hawthorne Heights (an emo rock band) made a song called Niki FM with the singer holding the radio over his head as a parody, the screenshot above is from Niki FM.

The new third gen 2010 Toyota Prius comes in four flavors, the Prius II, III, IV, and V each with special options. Anyone considering a purchase who is into solar and lives in a hot place like Las Vegas or LA (and also has a bit of extra cash) might want to consider the new solar sunroof option which is only available on the Prius 3, 4, or 5. We reported on aftermarket solar covers for the Prius last year and were speculating on how it might enhance the car.

The aftermarket solar car roofs are either set to charge the car battery and extend the range of hybrids, electrics, and plugins or power the air conditioner. The actual built in Prius solar sunroof was a bit of a letdown as it only powers a small vent fan. The official Toyota site explains:

The Solar Powered Ventilation System uses an electric fan to draw outside air into, through, and out of the cabin once the inside temperature reaches 68 degrees Fahrenheit. It will lower the cabin temperature to near the outside ambient temperature to help make the cabin more comfortable when reentering the vehicle. It must be turned on prior to leaving the vehicle and cannot perform cooling such as with an air conditioner.

While the solar panels do not power the air conditioner, there is an option to have a remote AC starter, so at least you can get the thing running when your back in range. For more information on the new Prius including a full 2010 Prius review and a breakdown on the adjustable seats follow the links. The image below shows the new solar sunroof option and the price to upgrade your model to include it is ~$4,600

Renewable Energy-Related Legislation and Loan programs in Hawaii

Hawaii Energy Tax Credits enacted Solar and Wind Energy Credit (Corporate) in 1990, according to which individuals or corporations can avail an income tax credit of 35% of the cost and installation charges for a solar thermal or photovoltaic system. Then back in 2003 in SB 855, there was a revision in Tax Credit and also an extension till 2007. According to SB 3162 in 2004, a taxpayer was allowed to claim a credit exceeding his income tax liability which can be carried forward until it's exhausted. State of Hawaii enacted HB 2957 in the month of June, 2006 which removed the credit's sunset date and also for some thermal applications it increases the maximum credit allowed. HB 2957 also announced the removal of new federal tax credits which were to be deducted from the cost of the system prior to the calculation of state tax credit. Then according to SB 644 solar water heating system owners, are no more required to pay personal tax credit for installations on new home construction after December, 2009.

Single family residential property owners are liable to a credit of 35% of the cost of solar thermal energy systems or $2,250, whichever is less. For multi-family residential property owners, it is 35% of the cost or $350 per unit. In case of commercial property, the tax credit is 35% of the system cost or $250,000, whichever is less.

Whereas for buying photovoltaic systems single family residential property owner can avail a credit of 35% of the system's cost or $5,000 whichever is less. The same for multi family residential property owner is 35% of system's cost or $350 per unit, whichever is less. Commercial property owners are eligible to claim a credit of 35% of the photovoltaic system's cost or $500,000, whichever is less.

High Technology Business Investment Tax Credit, enacted in July 2001, allowed 100% tax credits on an equity investment in a qualified high tech business in Hawaii. Qualified high tech business (QHTB) is considered as a business where 50% of the work goes into research activities in the following areas Wind energy, hydropower, solar thermal, ocean thermal energy, geothermal energy, wave energy, fuel energy, landfill energy etc. There are various slabs for allowed credit based on the year the investment was made. Later in 2004 HB 2396, expiration date of tax credit was changed to December 31, 2010 from December 2005.

According to Hawaii Revised Statutes (HRS) §46-19.6, every county agency issuing construction and development related permit are required to apply priority processing of permit applications for projects involving environmental and energy issues. This processing is offered at free of cost. Buildings meeting energy and environmental standards are only allowed for this processing. These standards are offered through LEED silver rating or a two Green Globes ratings.

Section 2 of Act 96 signed by Hawaii's Governor in May 2006, states the requirements of renewable energy and energy efficiency in Hawaii's public schools. For 2006-2007 fiscal year, $500,000 was allocated for the development of a net-metered, photovoltaic pilot project. HRS §196-9 also sets the standards to promote energy efficiency for state facilities, motor vehicles and transportation fuels. Hawaii solar incentives guide offered by Solar Power Authority.

Hawaiian Electric Company (HECO) and the City and County of Honolulu jointly started the Honolulu Solar Roofs Loan Program offering low interest loans (0% or 2%) to qualified homeowners of Oahu. Single family home owner is entitled to a maximum loan of $80,000 for each dwelling unit and up to four units with a upper limit of $125,000 per property. The funding comes from City's Rehabilitation Loan Program for the installation of solar heating systems.

Similarly to increase the use of use of renewable energy in Maui County, Maui Electric Company (MECO) and the County of Maui jointly started Maui County - Solar Roofs Initiative Loan Program in September 2002. A rebate up to $1,000 is provided for the installation of solar systems with a down payment equal to 35% of the system's actual cost. Renters can also apply for this rebate with property owner's permission. MECO is entitled for the administration task and all funds are sanctioned by County of Maui.

According to HB 2261, from July 2008, Farmers and Aqua culturists are eligible for the Farm and Aquaculture Sustainable Projects Loans. The projects must involve photovoltaic (PV) energy, hydroelectric power, wind power generation, methane generation, bio-diesel and ethanol production. Through this loan an amount of $1,500,000 or 85% of the project's cost can be availed. Department of Agriculture is responsible to determine the credibility of the applicant. These loans are in "H" class with an interest of 1%. In case of unpaid principle balance a simple interest is charged.

For the installation of solar watering heating systems the Kauai Island Utility Cooperative (KIUC) provides interest free loans. Kauai Community Federal Credit Union (KCFCU) and Kauai County Housing Agency (KCHA) are responsible for providing the funding. KIUC is responsible for paying the interest and all other administrative tasks. Commercial systems are not allowed to apply for.

Rebate programs

HECO - Energy$olutions Appliance Rebate Program
Through Energy$olutions program Hawaiian Electric Company (HECO) started offering various incentives mainly for their residential customers. These rebates can be availed against the purchase of room air conditioners or servicing of central air conditioners. The system must be installed only in Oahu and rebate can availed within the six months of the purchase.

HECO, MECO, HELCO - Energy$olutions Solar Water Heater Rebate
For the installation of solar water heaters, HECO and its subsidiaries Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO) offer a one-time rebate. This Energy$olutions Solar Water Heater Rebate program has been effective since June 1996 and supported more than 30,000 home solar water heater installation in Hawaii. Within the service territory of HECO, HELCO or MECO, the Residential Energy$olutions program will provide a rebate of $1,000 for the installation of solar water heater on new construction. Whereas Commercial customers are entitled to $125 per deferred kilowatt (kW) coincident with peak electric demands through the Commercial Energy$olutions rebate for solar water heaters. HECO itself provides the list of the contractors participating in the program and its 100 point inspection ensures the HECO's stringent standards.

HECO, MECO, HELCO - Energy$olutions Business Appliance Rebates and Customized Incentives Program
Commercial and business customers can apply for this utility rebate program which incorporates energy efficiency technologies like solar water heaters, Lighting, Heat pumps, Lighting controls/sensors, Heat recovery etc. Rebate amount is calculated on a case by case basis and greatly depends on the energy savings of the system and also whether the purchase being made is for retrofitting or new construction.

HECO, MECO, HELCO - Energy$olutions Water Heater Rebate
HECO, MECO and Hawaii Electric Light Company Inc. (HELCO) jointly approved rebates for Solar water Heater s, Heat pump water heater and high efficiency Electric Water Heaters under Energy$olutions programs. Funding is available only for retrofitting purposes. Applicants must be a permanent resident for more than year and they must purchase a program approved model. An amount up to $1,000 can be availed under this utility rebate program. Customers are also liable to get a monthly 43 credit on electric bill.

KIUC - Efficient Appliance Rebate Program
Under this utility program Kauai Island Utility Coop offers residential rebates for efficient appliances. Through this rebate program property owners can easily replace existing systems with new ones. Rebates are available for refrigerator, dishwasher and clothe washer throughout the year. Funding is provided on first come first served basis until it is exhausted.

KIUC - Energy Wise Commercial Energy Efficiency Program
Commercial customers of Kauai Island Utility Cooperative, a Touchstone Energy Cooperative are eligible to avail funding for installation of energy efficient equipment under this utility rebate program. KIUC's Commercial Energy Services Representatives conduct a survey to identify provision for equipment replacement. After identification and verification of energy-saving measures KIUC releases an incentive payment.

KIUC - Solar Water Heating Rebate Program
This Commercial Energy Wise Program was started in 1998 by Kaua'i Island Utility Cooperative. This utility rebate program is applicable in both commercial and residential sectors. An analysis and screening for cost effective energy devices like solar water heating systems are issued. Under residential program an amount of $800 can be availed for each solar system and for commercial use, 50% to 80% of the equipment costs can be availed.