Alert! 30% Tax Credit for some work was allowed to expire at the end of 2013. Check with us on availability of credits for Residential and Commercial Solar and Wind systems!
Other Energy conserving features also qualify
For solar and wind, take tax credits, sell SREGs, for the next 15 years for the rest of the cost and accellerate depreciation !!
Federal tax credits for windows, insulation, HVAC etc., (30% of material cost up to $1,500) were renewed at the end of 2010. However credits for solar-energy, small residential wind turbines and geothermal pump systems cover 30% of all costs -- installation included -- with no upper limit. These are good on both primary homes and vacation homes, new construction or otherwise. And they don't expire until 2016.
Every once in a while, the time is right to invest in energy conservation measures. Now is one of those times. You can get 1/3 of the up front cost back as a tax credit. In additioni there are Utility rebates, New Jersey Tax Credit and an ongoing credit based on energy savings or production from alternative sources each year. If you don't need the credit, you can sell it easily through brokers or directly. It is a simple process of recording the sale with a state agency.
This is one of the Photovoltaic systems available See link: Photovoltaic
The stimulus package provided for a cash grant in the form of a Tax Credit for up to 1/3 of the initial capital outlay. There are additional rebates offered by the Utilities Best of all, New Jersey offers tradeable Tax Credit on energy produced for 15 years.
We can now design and coordinate a turn key photovoltaic solar panel installation, with all paper work completed for the credits. We can even take care of the credits each year and simply send you or your accountant the paper work. You can take significant tax credits each year, or we can sell them for you on the open market through aggregators or brokers.
I've been working with Tom Voss, Thomas Voss, R.P.G., Green Advantage Certified, Viron Consulting Group, LLC, an environmental - "Green Technology" consultant., on another job in Morristown, a 10 unit multi-family where we plan to incorporate Photovoltaic power generation, geothermal heating and cooling, preheating for domestic hot water, and many
other "Green" technologies. We are including more "off the grid" technology so that residents will always have emergency power for lighting, heating fan motors and igniters, and refirigeration, security systems, water pressure, access to the internet in each unit As we discussed the best places to apply the photovoltaics, we realized that Hotels use a lot of power with the PTac units in each room relying on electric air to air heat pumps and resistance heat. I have a couple hotels I'm working on now - the Ramada is one of them.
These systems can also be combined with deep cycle battery backup storage for LED or Fluorescent emergency lighting and circuits to maintain refrigeration and internet. However most engineers would recommend a propane or diesel generator with fuel because batteries have a relatively short life. Soon new fuel cells will be available to store the energy for use at night or when the grid is down.
We happen to live in New Jersey, one of the most forward thinking states with respect to programs and incentives, rebates etc available to encourage the use of these technologies. Tom generated a typical spreadsheet showing the various rebates, tax credits etc available for a 500 KW system that could be installed on the rooftops and as a canopy over a portion of the parking lot, of the Mountain Inn and other similar facilities, but they also work for smaller residential jobs.
Aside from the one time rebates, grants, and accelerated depreciation, which cut the cost in half, the most exciting part of this program, is a very substantial Tax Credit Certificate issued each year that the system generates power. This radable credit pays for the rest of the system within the first few years, and continues as profit thereafter.
Here’s how it works:
· Typical 5 kW sys. total cost $30,000.
· NJ State Rebate: $6,750 (could be up to double that amount for a larger system).
· Federal 30% Tax Credit of $9,000
· Net out of pocket cost is $14,250.
· Value of free electricity $1,156
· Estimated SREC return $3,720
· Total ROI: $4,256 or 29%.
This should go up as electric rates rise due to inflation and as oil production decreases from its peak. If the solar installer doesn’t offer to finance the net cost of $14,250, most any bank should be willing to lend at 7% because the SREC income will easily pay the loan off within a few years.
Commercial installations will benefit from additional incentives:
· If the business prefers not to take the 30% tax credit, they may opt for a grant – a lump sum payment by check for the entire 30% from the US Treasury Dept. within 60 days of the installation.
· The cost can be depreciated in one year
Bonus depreciation in the same year!
You get a completely liquid and tradable NJ's Solar Renewable Energy Credits (SRECs) for 15 years. These can be kept or sold for between $400 to $675/SREC certificate for every 1,000 kwh you generate. The utilities in our state have to buy a certain number of these because it helps them comply with clean energy and the associated carbon reduction laws. Some utilities are committing to purchase SREGS for years in advance.
In our case, with a $30,000 system this would amount to at least $3,720 per year. You would also enjoy the difference between the cost of electric from the grid and your free source.
At the Mountain Inn, a Hotel this would result in a tradable tax credit of $330,000- $380,000 per year for ten years, and then a little less for the last 5 years.
Between the grant, the accelerated depreciation, and the SREC, the entire system is paid for within the first 4-5 years. After that the SREC income is profit to the owner.
Over a 20 year period, one location could have a potential NET INCOME of ~$6,300,000! Multiply this scenario by the # of other potential locations in NJ a client might have and you can achieve big INCOMES over a 20 year period!! The internal rate of return for the client over 20 years is ~30% or more!!
It's a win- win scenario for all, including the environment. We would like to include such a system on Mountain Inn, but perhaps look into another prototype for one of the existing Ramada Inns, such as the one on Rt 46.
Any facilities that currently utilize water circulation to heat and cool would be suitable for conversion to a Geo-thermal heatpump system, which also offers big Federal and State incentives. We can also include wind
power, which can help with power generation to run pumps and contribute to other needs.
Any excess power generated will be purchased back by the utility at the prevailing rates. This means that your savings (or profit) could be much higher if the cost of conventional generation increases due to the cost of oil or natural gas rising.
We would be glad to spend some time with you to show you more, maybe view pictures or visit an installation.
I might add that if the panel area is larger than can be accommodated by the site, I see no reason one couldn't make arrangements to have them installed just about anywhere there is land available where the owner would enter into
a profit sharing arrangement.