Saturday, November 15, 2008

Federal Solar Tax Credits Lifted and Extended....

The $2,000 dollar limit on Fed tax credits has been lifted for residential solar and commercial
solar added to homes and businesses after January 2009. For California, adding the utility rebates mandated by the California Department of Energy, this can only be called a solar
WINDFALL.

In Real Estate, everything to do with property is location, location, location. When we talk
Renewable Energy, it's always been about timing, timing, timing. Because the cost of the
solar investment on a 3 bedroom/2 bath home, can easily run between $35,000 to $40,000.
This is generally considered a pretty tough sale in any economic climate. But today, when
homeowners are looking for ways to get their hands on cold, hard cash. Financing a system
over 5, or 10 years, or more, using an equity line to get back say $15,000 in cash within
say 60 days, cutting their utility bills, adding value to their homes, all seems to make some
sense. All this while they and we in the industry, do our parts to cut our dependency on
our countries oil reserves, helping maybe to stop a war or two, fighting or meeting the new
state emission standards, all make good sense.

One of the most harmful things for the fledgling renewable industry has been the starting and
then stopping of the incentives that have made these projects feasible to the homeowner or
business owner. I'm speaking of local programs, utility weatherization programs, zero interest
loan programs, utility rebate and state and federal rebate or tax credit programs. All the
stopping and starting confuses the purchasers and when purchasers or investors are confused
they do what I do...nothing. At least nothing, until they have the time and energy to figure
it all out, themselves.

My name is Al Boek, (Pronounced BECK) I am the founder of a company called American Energy Conservation Group, est 1981. I am a pioneer in the renewable energy, conservation
and solar generation business. Yes, good for you, if you noticed, we were not selling solar PV
in the earlier days, pre 90's, but solar DHW (stands for Domestic Hot Water Heating Systems)
Our systems, were the more effective, less expensive, less exciting, but more profitable (for the homeowner) wicked step-sister of the solar industry. Why the most cost-effective type of solar
you can buy, until now, before the programs I mentioned above? A thermal solar system
collector is about 85% effective compared to a solar cells, 18-19% effectiveness. Now there
are exceptions to this rule, I'm being told, but for now, say 90% of the solar PV you might be
offered or purchase today is in that range.

So, It becomes more cost-effective to add conservation measures first, solar domestic hot water
systems next, including space, spa, pool and hot water heating for showers, then add the
properly sized solar electric system to handle the remaining electric or gas utility bill.

The larger solar manufactures and distributors what you to ignore the above published facts.
Solar rebates, Fed Tax Credits, higher home values, and lower utility bills...DO NOT CHANGE
THE FACTS...

One guy on Pickens Plan actually calls PV Solar Electric the SUV of the Renewable industry..because the energy used to make the products and the cost and size of the investment,
do not in anyway, except when they pay for most of it for you, make the systems install more cost-effective then the addition of sound, proven conservation and DHW solar additions.

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