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REBATES & INCENTIVES:
Residential Energy Efficiency Tax Form
OVERVIEW:
On both National and State
levels, there are programs in place to help "level the economic playing
field" between green, renewable energy sources (like solar electricity)
and polluting, finite energy sources (such as fossil fuels and nuclear
energy). The latter already receive billions of dollars annually in subsidies
and incentives, so we're extremely pleased that renewable energy technologies
are now receiving government assistance as well.
SUMMARY
OF INCENTIVES FOR COLORADO:
Excel Rebates and
Renewable Energy Credits (RECs):
- $2.00 per DC watt cash rebate (calculated using the
PV system's total power rating)
- $0.55 - $0.70 per DC watt one-time payment for the
system's lifetime Renewable Energy Credits (RECs).
- Minimal system size to qualify for rebate/RECs is
0.5KW
Federal Income Tax
Credits:
- 30% of out-of-pocket costs --> after
deducting any state/local incentives
- State sales tax waiver (2.9%)
- RTD sales tax waiver (1.2%)
- The rebate is approximately 15% of the sales tax
In practical terms,
these incentives reduce your total “out-of-pocket” costs for a solar
electric (PV) system by as much as 70%!!!
THE EMERGENCY ECONOMIC STABILIZATION ACT OF 2008:
On October 3, 2008, President
Bush signed the Emergency Economic Stabilization Act of 2008 into law. The
new energy bill extends the 30-percent federal investment tax credit for both
residential and commercial solar installations for 8 years (2009-2016). The
legislation improves upon the previous investment tax credits by removing the
$2,000 cap for residential solar PV systems and allowing Alternative Minimum
Tax (AMT) filers to take the tax credits. When purchasing a system, we
strongly recommend that you contact a professional tax advisor to inquire
about your specific situation.
Commercial customers should consult their accountant for the appropriate IRS
tax forms. Residential customers can click refer to the link above for the
IRS Form 5695.
Learn more about the new federal tax credits by contacting us and/or visiting
the following websites:
Solar Energy Industries Association (SEIA):
http://seia.org/galleries/pdf/ITC%20Frequently%20Asked%20Questions%2010%2024%2008.pdf
This link contains a summary of the Emergency Economic Stabilization Act and
as well as answers to many "Frequently Asked Questions" (FAQs)
COLORADO'S AMENDMENT 37 AND HOUSE BILL 1281:
In November of 2004, Colorado
voters passed Amendment 37 (A37), mandating that a certain percentage of
Colorado's electricity come from renewable sources such as wind and solar
power. The rules were finalized and Xcel began paying out rebates in the
Spring of 2006. House Bill 1281 (HB1281) was signed into law by Governor Bill
Ritter in early 2007 and effectively doubles the original goals of A37 to 20%
by 2020. The incentive is divided into a $2.00 per watt rebate and a $1.50
per watt Renewable Energy Credit payment (REC).
Because a typical flush-mount roof array costs about $8 to $9 a watt, the
combination of rebate and REC from Xcel, along with the federal tax credit,
means that your final out-of-pocket cost can be reduced by about 40% to 50%.
This assumes that your system can be installed such that it produces at least
90% of what an optimally positioned array in a shade-free area would produce.
If your installed system is predicted to produce less than 90% of optimum,
then the REC portion of the Xcel incentive (which is production-based) is
reduced accordingly.
Namaste Solar has been actively involved in the rule-making process for A37
and HB1281 by testifying three times in front of the PUC and submitting four
sets of written comments and testimony (see links to our comments and
testimony below). Learn more about A37 and HB1281 by contacting us and/or
visiting the following websites:
Xcel's Official Solar Rebate Program Website
http://www.xcelenergy.com/solar
Xcel's official website contains details about their
"Solar*Rewards" solar rebate program, which began accepting
applications on March 1, 2006. An e-mail address for inquiries is available
and you can sign up on their mailing list to receive program updates.
Article: "Colorado Voters Pass Renewable Energy Standard"
http://www.renewableenergyaccess.com/rea/news/story?id=17736
Amendment 37 Creates First Ever Voter-Approved Renewable Energy Standard.
Article: "Dirty Energy" (Boulder Weekly):
http://www.boulderweekly.com/archive/100605/newsspin.html
"Could Xcel Energy be sabotaging Colorado's new renewable-energy
requirement?"
Colorado Renewable Energy Society (CRES):
http://www.cres-energy.org/procon37.html
CRES's summary of the "Pros and Cons of Amendment 37"
Article: "Science Group Backs Amendment 37" (Denver Business
Journal)
http://www.bizjournals.com/denver/stories/2004/10/18/daily42.html?t=printable
A short article from the Denver Business Journal about the analysis of
Amendment 37 by the renowned science group, the Union of Concerned Scientists
(UCS)
PUC Website Listing Rulemaking Notices and Public Comments
http://www.dora.state.co.us/puc/rulemaking/
RecentRulemakingActivity.htm#05R112E
The source for all public notices and comments regarding Amendment 37
Namaste Solar's 1st Comments Submitted to PUC (May 13, 2005)
Click
Here to View in PDF format
Namaste Solar's 1st set of comments submitted to the PUC regarding the draft
rules for Amendment 37 that were issued in May, 2005
Namaste Solar's 2nd Comments Submitted to PUC (June 13, 2005)
Click Here to
View in PDF format
Namaste Solar's 2nd set of comments submitted to the PUC June 13, 2005
Namaste Solar's 3rd Comments Submitted to PUC (August 24, 2005)
Click
Here to View in PDF format
Namaste Solar's 3rd set of comments submitted to the PUC regarding the
consensus rules for Amendment 37 that were issued in August, 2005
Namaste Solar's Testimonies on Behalf of CoSEIA Submitted to the PUC
Namaste Solar’s President and CoSEIA Board Member, Blake Jones, testified on
behalf of CoSEIA to the PUC multiple times as follows:
PDF Format: 23-Feb-2007: Xcel
Energy’s 2007 RPS Compliance Plan
PDF
Format: 29-Feb-2008: Xcel Energy’s 2008 RPS Compliance Plan
PDF
Format: 28-Mar-2008: Xcel Energy’s 2008 Resource Plan
CITY OF BOULDER REBATES & INCENTIVES:
Solar energy systems
installed within Boulder city limits are currently eligible for a tax rebate.
Boulder City Council approved an ordinance in November 2006 to provide
rebates for a portion of sales and use tax on both solar electric
(photovoltaic) and solar thermal (hot water) systems. The ordinance was passed
to encourage residents and businesses to install renewable energy systems in
the city of Boulder. The end effect is a 15% rebate on the Boulder City sales
and use taxes paid on a solar PV system.
Learn more about this new program by contacting us and/or visiting the
following websites:
Article: "Rebates for solar-energy systems begin after Dec. 14"
(City of Boulder website)
http://www.bouldercolorado.gov/index.php?option=com_content&task=view&id=
6253&Itemid=169
City of Boulder December 11, 2006 Press Release
FAQ page on the new Boulder City sales tax rebate
http://www.bouldercolorado.gov/index.php?option=com_content&task=view&id=
1058&Itemid=396
This page contains a link to FAQs provided by the City of Boulder's Division
of Environmental Affairs.
Namaste Solar Electric
actively assists the City of Boulder regarding solar photovoltaics, the
Climate Action Plan, the Green Points Program and other related issues. We
strive to support the City of Boulder and the Environmental Affairs Office
staff in whatever ways that we are able. During consideration of this
ordinance we spoke at a Boulder City Council meeting in support of the
proposed tax rebate for solar photovoltaic and solar thermal systems (see
links below).
Namaste Solar’s Comments to the Boulder City Council (October 3, 2006)
Click
Here to View in PDF format
Namaste Solar’s comments to the Boulder City Council on October 3, 2006
regarding the proposal of Ordinance No. 7847 to establish sales and use tax
rebates for qualified photovoltaic and solar thermal system installations.
City of Boulder Council Agenda Item - Second reading of Ordinance No. 7487
http://www.ci.boulder.co.us/files/Clerk/Agendas/2006/10-03-06/5a.pdf
Please contact us or check our website regularly for more information.
Contact Info
Namaste Solar Electric, Inc.
In Boulder: 4571 North Broadway, Boulder, CO 80304
In Denver: 3330 Larimer Street, Suite 1A, Denver, CO 80205
Tel: (303) 447-0300 | Fax: (303) 443-8855
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