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Solar Energy Rebates and
Incentives
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Solar incentives come in
many different forms and differ in timing, eligibility,
and value. |
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State Grants
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States offer a variety of
grant programs to encourage the use and development of
renewables and energy efficiency. Most programs offer
support for a broad range of technologies, while a few
programs focus on promoting a single technology, such as
photovoltaic (PV) systems. Grants are available
primarily to the commercial, industrial, utility,
education and/or government sectors. Most grant programs
are designed to pay down the cost of eligible systems or
equipment. In recent years, the federal government has
offered grants for renewables and energy efficiency
projects for end-users. Grants are usually competitive. |
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Corporate Tax
Incentives
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Corporate tax incentives
include tax credits, deductions and exemptions. These
incentives are available in some states to corporations
that purchase and install eligible renewable energy or
energy efficiency equipment, or to construct green
buildings. In a few cases, the incentive is based on the
amount of energy produced by an eligible facility. Some
states allow the tax credit only if a corporation has
invested a minimum amount in an eligible project.
Typically, there is a maximum limit on the dollar amount
of the credit or deduction. In recent years, the federal
government has offered corporate tax incentives for
renewables and energy efficiency. |
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Performance Based
Incentives (PBIs)
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Performance-based
incentives (PBIs), also known as production incentives,
provide cash payments based on the number of
kilowatt-hours (kWh) or BTUs generated by a renewable
energy system. A "feed-in tariff" is an example of a PBI.
To ensure project quality, payments based on a system’s
actual performance are generally more effective than
payments based on a system’s rated capacity. |
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Rebates
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States, utilities and a few
local governments offer rebates to promote the
installation of renewable energy systems and energy
efficiency measures. The majority of rebate programs
that support renewables are administered by states,
municipal utilities and electric cooperatives; these
programs commonly provide funding for solar water
heating and/or photovoltaic (PV) systems. Most rebate
programs that support energy efficiency are administered
by utilities. Rebate amounts vary widely by technology
and program administrator. |
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Solar Renewable Energy
Credits
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A single SREC represents
one megawatt hour (1,000 kilowatt hours) of electricity
generated by a solar photovoltaic system. Renewable
portfolio standards (RPSs) require utilities to use
renewable energy or renewable energy credits (RECs) to
account for a certain percentage of their retail
electricity sales -- or a certain amount of generating
capacity -- according to a specified schedule. Most U.S.
states have established an RPS. The term “set-aside” or
“carve-out” refers to a provision within an RPS that
requires utilities to use a specific renewable resource
(usually solar energy) to account for a certain
percentage of their retail electricity sales (or a
certain amount of generating capacity) according to a
set schedule. Values vary greatly by state. |
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Whether you have a single
location or are interested in solar throughout a
national portfolio of properties, Hannah Solar can help
you determine the most advantageous programs available.
Contact us for a comprehensive economic evaluation. |
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