TargeT
18th March 2013, 20:48
I am working to buy a house at my new location (USVI) and have put an offer in on a property I've found.
Power here is extremely expensive from the local utility (.58 usd per kw/h) this has prompted me to look into grid tie (net metering) solar panels and the possibility of complete power independence (perhaps down the road).
As I research these options I'll post my findings here, I'm fairly confident I can execute this project and project it to be in the 30,000-40,000 dollar range (though 20,000 would be much nicer).
As I am not independently wealthy I will have to seek financing to accomplish my goals, and thus I have found the following information, which I will expand on as I learn more (work in progress thread etc..)
18 MAR 2013 findings:
GOVERNMENT PROGRAMS:
USDA - Rural Energy for America Program (REAP) Grants
Maximum Incentive: 25% of project cost
Applicable Sectors: Commercial, Schools, Local Government, State Government, Tribal Government, Rural Electric Cooperative, Agricultural, Institutional, Public Power Entities
http://www.rurdev.usda.gov/BCP_ReapResEei.html
Agricultural can be a very loose definition, you'd be suprized who would qualify for this, I see this as a usable grant for a lot of people.
USDA - High Energy Cost Grant Program Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Municipal Utility, Institutional
Amount: $20,000-$3,000,000
Maximum Incentive: $3 million
Installation Requirements: Both grid-connected and off-grid renewable energy installations are eligible
2013 Notice of Funding Availability (NOFA)
The 2013 Funding announcement will be made in the spring if funds are available. The funding announcement will be similar to the 2012 NOFA.
http://www.rurdev.usda.gov/UEP_Our_Grant_Programs.html
Gonna have to keep an eye on this one as it is not funded yet this year, however it seems widely applicable and attractive.
Residential Renewable Energy Tax Credit
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar-Electric Technologies, Fuel Cells using Renewable Fuels
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service after 2008: no maximum
Solar water heaters placed in service after 2008: no maximum
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
it says 30% and "no maximum" I'm guessing that means 30% of what ever you spend for solar, decent for sure. I'll definitely use this.
*****NOTE****
There are a lot of state & even county programs that are not listed here, be sure to check for your local programs if you are interested in this.
FINANCING OPTIONS:
The Energy Efficient Mortgage Loan
An energy efficient mortgage is a loan that allows you to incorporate the cost of your solar improvements into your mortgage loan. The improvements can cost up to 15 percent of the total value of your home. The lender will calculate the energy savings for you home because of the new solar system and will add that to the total loan value, letting you borrow more than normal. Put another way, it doesn’t matter how much equity you currently have in your home, the solar financing is added on top of the loan. This, of course, lets you get a solar system without much out of pocket expense and you get to recover a good chunk of the cost through an increased mortgage interest deduction. Throw in tax credits, rebates and net metering incentives, and solar is getting mighty cheap if you know how to work the system.
Energy efficient mortgages have very few restrictions. You can get them for new construction or existing homes. The can be issued for single family residents, duplexes, condos and so on.
.
http://bestsolarenergykits.com/financing-residential-solar-power/
http://www.fha.com/energy_efficient.cfm
This looks like one of the best options.
PowerSaver
•Up to $25,000 to be used for energy-efficiency improvements including solar leasing and solar installation
•$7,500 minimum loan amount
•20-year term for solar
•Minimum FICO score of 660
•45% debt-to-income ratio
•100% combined loan-to-value ratio (CLTV)
•No upfront loan fees (excluding 1% mortgage insurance)
Now more than ever, it's easy and affordable to go solar. W.J. Bradley Mortgage Capital, LLC has been chosen by the US Department of Housing and Urban Development, (HUD), to offer affordable PowerSaver loans for homeowners to go solar. Homeowners can get low interest loans up to $25,000 specifically designed to finance residential solar systems. PowerSaver is insured by the Federal Housing Authority.
http://solar.wjbradley.com/solar-by-powersaver.php
Depending on the rates this could be very attractive.
PACE financing
PACE stands for Property Assessed Clean Energy. PACE is an innovative means of financing rooftop photovoltaics and other energy improvements. In areas with PACE legislation in place municipal governments offer a specific bond to investors and then turn around and loan the money to consumers and businesses to put towards an energy retrofit. The loans are repaid over the assigned term (typically 15 or 20 years) via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be used to retrofit both commercial and residential properties. One of the most notable characteristics of PACE programs is that the loan is attached to the property rather than an individual.[1][2][3][4]
PACE programs help home and business owners pay for the upfront costs of green initiatives, such as solar panels, which the property owner then pays back by increasing property taxes by a set rate over about 20 years. This allows property owners to begin saving on energy costs while they are paying for their solar panels. This usually means that property owners have net gains even with increased property tax.
http://en.wikipedia.org/wiki/PACE_financing
sounds like PACE is getting to be rare due to the loan security issues it brings up, however if it is available in your area it sounds like a good program.
SOLARCITY PPA & Lease
SolarPPA and SolarLease are both great options. They offer similar financial advantages to the homeowner. The primary difference is that with a lease you pay by the month, and with a PPA you pay per kWh. Another benefit of the SolarPPA is that you can purchase the system anytime after year five. Availability of SolarPPA and SolarLease vary by location based on what your local utility company prefers.
http://www.solarcity.com/residential/solar-ppa.aspx
I'm not sure I like either of these options, but they are avalible & interesting providing low/no cost entry into solar power.
Here's some news on solar financing options:
http://www.greentechmedia.com/articles/read/Solar-Finance-Innovations-from-SolarCity-and-Honda-OneRoof-SunPower-Vivi
Another PPA option:
https://www.greentechmedia.com/articles/read/Clean-Power-Finance-is-Now-a-PPA-Firm-Too/
again, I'm not very interested in paying for power from panels located on my property, or leasing, I'd rather finance to own.
Here is a nice Interactive Map of Solar Energy Incentives :
http://www.getsolar.com/cost_solar-energy-incentives.php
and a decent article on Buying, Borrowing or Leasing solar:
http://www.getsolar.com/blog/buy-borrow-or-lease/
Federal incentives:
http://www.getsolar.com/cost_solar-energy-incentives-federal.php
Currently this is what I have found to be useful information for people in my situation, I am working with my mortgage broker to find which is going to be the most viable (as far as financing) and I'll do the leg work myself on deductions/rebates/grants & update what I find as I go along.
Power here is extremely expensive from the local utility (.58 usd per kw/h) this has prompted me to look into grid tie (net metering) solar panels and the possibility of complete power independence (perhaps down the road).
As I research these options I'll post my findings here, I'm fairly confident I can execute this project and project it to be in the 30,000-40,000 dollar range (though 20,000 would be much nicer).
As I am not independently wealthy I will have to seek financing to accomplish my goals, and thus I have found the following information, which I will expand on as I learn more (work in progress thread etc..)
18 MAR 2013 findings:
GOVERNMENT PROGRAMS:
USDA - Rural Energy for America Program (REAP) Grants
Maximum Incentive: 25% of project cost
Applicable Sectors: Commercial, Schools, Local Government, State Government, Tribal Government, Rural Electric Cooperative, Agricultural, Institutional, Public Power Entities
http://www.rurdev.usda.gov/BCP_ReapResEei.html
Agricultural can be a very loose definition, you'd be suprized who would qualify for this, I see this as a usable grant for a lot of people.
USDA - High Energy Cost Grant Program Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Municipal Utility, Institutional
Amount: $20,000-$3,000,000
Maximum Incentive: $3 million
Installation Requirements: Both grid-connected and off-grid renewable energy installations are eligible
2013 Notice of Funding Availability (NOFA)
The 2013 Funding announcement will be made in the spring if funds are available. The funding announcement will be similar to the 2012 NOFA.
http://www.rurdev.usda.gov/UEP_Our_Grant_Programs.html
Gonna have to keep an eye on this one as it is not funded yet this year, however it seems widely applicable and attractive.
Residential Renewable Energy Tax Credit
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar-Electric Technologies, Fuel Cells using Renewable Fuels
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service after 2008: no maximum
Solar water heaters placed in service after 2008: no maximum
http://www.energystar.gov/index.cfm?c=tax_credits.tx_index
it says 30% and "no maximum" I'm guessing that means 30% of what ever you spend for solar, decent for sure. I'll definitely use this.
*****NOTE****
There are a lot of state & even county programs that are not listed here, be sure to check for your local programs if you are interested in this.
FINANCING OPTIONS:
The Energy Efficient Mortgage Loan
An energy efficient mortgage is a loan that allows you to incorporate the cost of your solar improvements into your mortgage loan. The improvements can cost up to 15 percent of the total value of your home. The lender will calculate the energy savings for you home because of the new solar system and will add that to the total loan value, letting you borrow more than normal. Put another way, it doesn’t matter how much equity you currently have in your home, the solar financing is added on top of the loan. This, of course, lets you get a solar system without much out of pocket expense and you get to recover a good chunk of the cost through an increased mortgage interest deduction. Throw in tax credits, rebates and net metering incentives, and solar is getting mighty cheap if you know how to work the system.
Energy efficient mortgages have very few restrictions. You can get them for new construction or existing homes. The can be issued for single family residents, duplexes, condos and so on.
.
http://bestsolarenergykits.com/financing-residential-solar-power/
http://www.fha.com/energy_efficient.cfm
This looks like one of the best options.
PowerSaver
•Up to $25,000 to be used for energy-efficiency improvements including solar leasing and solar installation
•$7,500 minimum loan amount
•20-year term for solar
•Minimum FICO score of 660
•45% debt-to-income ratio
•100% combined loan-to-value ratio (CLTV)
•No upfront loan fees (excluding 1% mortgage insurance)
Now more than ever, it's easy and affordable to go solar. W.J. Bradley Mortgage Capital, LLC has been chosen by the US Department of Housing and Urban Development, (HUD), to offer affordable PowerSaver loans for homeowners to go solar. Homeowners can get low interest loans up to $25,000 specifically designed to finance residential solar systems. PowerSaver is insured by the Federal Housing Authority.
http://solar.wjbradley.com/solar-by-powersaver.php
Depending on the rates this could be very attractive.
PACE financing
PACE stands for Property Assessed Clean Energy. PACE is an innovative means of financing rooftop photovoltaics and other energy improvements. In areas with PACE legislation in place municipal governments offer a specific bond to investors and then turn around and loan the money to consumers and businesses to put towards an energy retrofit. The loans are repaid over the assigned term (typically 15 or 20 years) via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be used to retrofit both commercial and residential properties. One of the most notable characteristics of PACE programs is that the loan is attached to the property rather than an individual.[1][2][3][4]
PACE programs help home and business owners pay for the upfront costs of green initiatives, such as solar panels, which the property owner then pays back by increasing property taxes by a set rate over about 20 years. This allows property owners to begin saving on energy costs while they are paying for their solar panels. This usually means that property owners have net gains even with increased property tax.
http://en.wikipedia.org/wiki/PACE_financing
sounds like PACE is getting to be rare due to the loan security issues it brings up, however if it is available in your area it sounds like a good program.
SOLARCITY PPA & Lease
SolarPPA and SolarLease are both great options. They offer similar financial advantages to the homeowner. The primary difference is that with a lease you pay by the month, and with a PPA you pay per kWh. Another benefit of the SolarPPA is that you can purchase the system anytime after year five. Availability of SolarPPA and SolarLease vary by location based on what your local utility company prefers.
http://www.solarcity.com/residential/solar-ppa.aspx
I'm not sure I like either of these options, but they are avalible & interesting providing low/no cost entry into solar power.
Here's some news on solar financing options:
http://www.greentechmedia.com/articles/read/Solar-Finance-Innovations-from-SolarCity-and-Honda-OneRoof-SunPower-Vivi
Another PPA option:
https://www.greentechmedia.com/articles/read/Clean-Power-Finance-is-Now-a-PPA-Firm-Too/
again, I'm not very interested in paying for power from panels located on my property, or leasing, I'd rather finance to own.
Here is a nice Interactive Map of Solar Energy Incentives :
http://www.getsolar.com/cost_solar-energy-incentives.php
and a decent article on Buying, Borrowing or Leasing solar:
http://www.getsolar.com/blog/buy-borrow-or-lease/
Federal incentives:
http://www.getsolar.com/cost_solar-energy-incentives-federal.php
Currently this is what I have found to be useful information for people in my situation, I am working with my mortgage broker to find which is going to be the most viable (as far as financing) and I'll do the leg work myself on deductions/rebates/grants & update what I find as I go along.