Thursday, April 12, 2012

Tax season Solar can help

Tax Season, what can you do next year to save on personal income tax or corporate income tax.
Add a solar system to your home or commercial building. You can purchase the system out right in cash or finance it at your bank. Or Lease it. I will explain both ways and the advantages of each, benefits vary state to state so contact me to get specifics about your state.

 In Texas:

Homeowner purchased system will pay for itself in about 7-9 years depending on who sells it to you. Advantages of purchasing are 30% Federal Tax Credit and in some cases your developer will have safe harbored panels that will qualify for a grant (or cash to you directly in 60 days of your install from Uncle Sam) in Lew of tax credit. Plus in some areas of Texas Oncor's,  "Take the load off Texas", AEP and others have incentives and will pay up to $2 per watt you install. You will have only have to pay 20%-40% of the total cost of the install our self. You will enjoy energy from the Sun, that is clean energy and does not pollute the Air. Solar Arrays are warrantied to operate to 80% efficiency for 25 years. Your system should be paid off after 7-9 years netting you free electricity for up to 18 year under warranty. Systems placed into operation 35 years ago are still working and producing free clean energy from the Sun today.
Solar is efficient and sexy, and now more affordable to everyone. Side benefit is the system will add value to your home without raising the property taxes. Green energy Solar is property tax exempt! In most states. Some state have feed in tariffs, and Renewable energy certificates that earn you money back for production of clean energy to the grid.

Homeowner Leased system will level out your energy cost with no out of pocket cost, no maintenance, no insurance expenses. Just trading a energy bill that fluctuates and will go up 3-6% annually for the next 20 years for a flat cost per month close to what your paying today. You level out your expenses, and help clean the Air. So Winter, Spring, Summer or Fall you monthly bill is the same. If you want to lower your monthly bill from today's charges drop a little cash at the beginning of the lease and level your lower monthly lease payment. Your choice! :-) With the lease the customer gets to credit the tax credits, rebates, incentives and depreciation to the price of the install to lower the lease payment. Also in states with Renewable Energy Credits or certificates the customer can keep the SREC's or at least up to 75% of them.

Commercial purchased system is the same as the homeowner purchased system except for a couple of things. the Oncor or AEP incentive is $1.50 per watt. The Federal tax credit is the same 30% with the same rules for safe harbored panels. Corporations and business get a 50% depreciation in the first year of system service, and can depreciate the rest out over the next 4 years.  Some states have other incentives such as Hawaii has a state tax credit of 35% to go along with the 30% Federal tax credit. Also there are things called feed in tariffs and SRECs (renewable energy credits or certificates) That are worth money to the owner. Hawaii has a 19.5 cent feed in tariff which they pay you .195 cents per watt for every watt you produce to the grid even if you use it yourself. Massachusetts has an SREC that is worth between $300-$570 each. You get one SREC per 1000 kw hrs produced to the grid. So in those states you trade your electric bill for a paycheck paid to your each month.

Commercial Leased system is the same as the homeowner lease except the business owner has an option to purchase the lease out in 4 to 7 years and own the system outright.

Contact me if you want to know more about these programs and I will try to direct you to reliable solar developer to help you through the process.

1 comment: