The new year is well underway (Happy New Year!), and so it is timely to revisit the question of financial incentives to Go Solar in the Run on Sun service area. (You can read more detail about all of these incentives on our Solar Financing page.)
Beyond a doubt, the most significant incentive for going solar is the 30% federal tax credit. Previously set to expire at the end of this year, the federal solar tax credit was extended late last year, continuing at the present 30% through 2019.
The credit applies to solar installations in every utility’s territory, so no matter where you live in the U.S., this credit applies to you. (NB: this is a tax credit, not an income deduction, so you need the tax “appetite” to take full advantage of this incentive - check with your tax advisor.) For residential clients, the basis for the credit is the full cost of your solar project, less any rebate that you might receive from the utility. Commercial clients, who must declare any rebate as income, do not need to deduct their rebate from the system cost when calculating the basis.
Once common everywhere, utility rebates are going the way of the dodo—with one or two notable exceptions. We have rank ordered the local utilities below, based on the reliability of their rebate program.
The big winner, again and by far, is the solar rebate program operated by our own Pasadena Water and Power. Year in and year out, PWP offers rebates to its customers in a transparent and consistent manner - something that cannot be said of any of its neighboring utilities.
As of this writing, PWP is offering a rebate of $0.45/Watt for both residential and commercial customers, and a rebate of $0.90/Watt to non-profit customers (who cannot take advantage of the federal tax credit). Alternatively, PWP also offers a performance-based incentive that is paid out over two years based on the actual production of the system. Residential and commercial customers are paid 14.4¢/kWh, whereas non-profit customers are paid 28.8¢/kWh.
LADWP offers a rebate, if you have the stamina to receive it. Vexed with the most bureaucratic process to be found this side of Orwell’s 1984 dystopia, applying for and receiving a rebate from DWP often feels like a reward for a life well spent.
That said, LADWP is currently offering rebates of $0.30/Watt to residential customers, $0.40/Watt to commercial, and $1.15/Watt to non-profits. Just don’t hold your breath.
These two municipal utilities often feel like one and the same given their similar approach to rebates - which is to say, now you see ‘em, no you don’t.
Unlike their neighbor to the east, neither BWP nor GWP is able to maintain a rebate program throughout the year. Instead, both open their rebate windows on or about July 1st (i.e., the start of their fiscal year) and then hand out money until it is gone, at which time the window slams shut until the following July 1.
Burbank’s program operates under a lottery, which last year opened on July 1 and was exhausted by August 15. In addition, BWP imposes restrictions on the azimuth and pitch of rebated systems, despite their being no technical justification for doing so.
Glendale’s program is even less transparent, and the installation/rebate process is outlined in a 23-step ode to inefficiency.
We will revisit both of these program in mid-June to provide what guidance we can to the residents of these two cities.
The “Solar Partnership Program” in Azusa is fully subscribed. There is a wait list that solar-hopeful customers can get on in the hope that at some point there will be rebate funds available - with no guarantees that there ever will be.
The Anaheim Solar Incentive Program was fully subscribed as of October 1, 2015 and is now closed, with no published plans to revise the program in the future.
SCE’s rebates, which were part of the larger, California Solar Initiative, have expired and no new funds are anticipated. Of course, SCE customers still have the highest electricity rates around, which provides its own—albeit perverse—incentive to Go Solar!
UPDATE - 12/16 - Congress unveils a potential 5-Year Extension!
On Tuesday, Congressional leaders unveiled a behemoth spending bill (as in 2,009 pages!) that includes an extension for the solar tax credit. As proposed, here are the details:
To be sure, this is not yet a done deal and Congress could balk on passing the bill, so watch this space! Better yet, use the form below and tell your Representative to support the Consolidated Appropriations Act, 2016.
We have written about how the federal Investment Tax Credit - which provides solar system owners a credit on their taxes worth 30% of the system cost - is set to expire at the end of 2016 and the havoc that will cause in the industry. We have been skeptical that the present Congress would act to extend the credit. But activism is always better than skepticism, and right now there is a chance to act to save the ITC!
It is a classic Congressional tradition - horse trading some call it, logrolling is another term of art - but at the end of the day it means compromise. It turns out that there are tax credits that Republicans love (e.g., credits to businesses for various types of purchases) and tax credits that Democrats love (e.g., the earned income credit and others that generally help lower income constituents). Turns out that there are enough of those credits on both sides (it is left as a challenge for the reader to determine which side of the aisle is supporting the solar ITC) to make it possible, maybe even likely, that a compromise bill could get through.
But there are many reasons why it might fail. Deficit hawks in the House might try to derail it over its cost. Democrats might complain it gives away too much to Big Business. In short, it is the sort of compromise in which everyone can find something to love, as well as something to hate. But can it pass? That’s where you come in.
Below is a form where you can get the contact information for your member of Congress just by entering your zip code…
Take just three minutes to look up your Representative and give them a call. When you get them on the line, tell them to support the longest possible extension of the solar ITC. Three minutes to save 30% on future solar installations - that’s what we call time well spent!
When you are fortunate enough to work in the Solar Industry you really should be thankful everyday. After all, we are a part of doing something wonderfully important at work, and how many people can honestly say that? We provide genuine value to our clients by bringing them clean, affordable solar energy, and we get to make our living at the same time – pretty cool!
But with the holidays upon us, starting with Thanksgiving tomorrow, we wanted to take a look back on this year and highlight some of the things for which we are especially thankful, today and all year around.
So, in no particular order, here is our list for 2015…
Of course, at the end of the day, it is all of our clients for whom we are the most thankful! From the first to the latest, from the smallest to the largest, and everyone in between - you are why we do what we do, and we never for a moment take for granted the trust you have placed in us.
May your holidays be filled with peace and joy and love!
A little over three years ago (my how time flies), we installed a 52kW solar project at the Westridge School for Girls, here in Pasadena. At the time, the project got a fair amount of attention (including an award from the City), was featured in a video (watch it here), and was the lead story in Enphase Energy’s Summer 2012 Newsletter.
Three years down the road, the folks at Enphase decided to circle back and check-in to see how the Westridge project had performed over the years - both in terms of saving money for the school, as well as being incorporated into the curriculum (another key goal of the project).
The article, titled — Solar on the Roof, Power in the Classroom — details how the Westridge Solar system has outperformed the modeled performance, producing 105% of the expected yield. That overproduction actually benefits the school twice: most obviously by lowering the bills that much more, but secondarily, by providing a larger than expected performance-based rebate payment.
Beyond that, however, the system has also proved to be an effective teaching tool, allowing Westridge students to analyze the copious amounts of data provided by the Enphase microinverters through the Enlighten, cloud-based data reporting service. One science class, for example, was able to discover how analyzing that data could detect the occurrence of a partial solar eclipse.
We are very proud of our partnership with Westridge and we look forward to doing another project with them in the near future.
Likewise, we are grateful for partners like Enphase Energy who are as committed to producing long term solutions as we are. That is one powerful pairing!
We don’t often announce our latest projects, but one this week really stands out, and that is our upcoming project for Chandler School here in Pasadena. (Indeed, it is just down the street from where I once lived!) The 44.8 kW system will be installed this summer, in time for the 2015-16 school year.
Chandler is a special place that puts great emphasis on challenging its students. As they note in their Mission Statement:
Chandler students gain a love of learning, a means of thinking independently and an ability to work collaboratively. A Chandler education seeks to develop good character, self-reliance and a commitment to community in students as a foundation for academic and personal success.
It will come as no surprise to readers of this blog that we at Run on Sun have a soft spot for non-profits, and we take great pride in working with schools and churches to expand their mission while making the world a greener, cleaner place. We understand the process involved, with its many twists and turns, and we have found that our collaborative, information-intensive brand of “selling” solar meshes well with the non-profit world.
In the case of Chandler School, the process actually moved quite quickly - spurred on, at least in part, by the rebate step down announced by Pasadena Water and Power for May 1. Once the decision was made, the design team at Run on Sun was able to move quickly and get the rebate application completed and filed in time to meet the deadline.
As noted by John Finch, Chandler’s Head of School:
As an independent school in Pasadena we have a public purpose to make our environment cleaner by reducing our dependency on fossil fuels and limiting our carbon footprint.
If we want our students to be stewards of the environment in the future, schools need to be examples of best practices. The installation of solar panels on our gym roof is a best practice. I am looking forward to the learning opportunities that the project will give to our students.
We are excited to be working with this renowned Pasadena institution, and we look forward to providing the Chandler community with a wonderful asset that will both save money, and enhance the educational experience of its 450 students.