Edison
Grants & Credits
Solar & Wind
GOVERNMENT SOLAR & WIND ENERGY GRANTS & CREDITS
Depreciation: Modified Accelerated Cost-Recovery System (MACRS) over 5 years.
Depreciation: Modified Accelerated Cost-Recovery System (MACRS) over 5 years.
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Federal Business Energy Investment Tax Credit (ITC)
Solar. The credit is equal to 30% of expenditures, with no maximum credit limit stated. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. (Passive solar systems and solar pool-heating systems are not eligible.)
Small Wind Turbines. The credit is equal to 30% of expenditures, with no maximum credit limit for small wind turbines placed in service after December 31, 2008. Eligible small wind property includes wind turbines up to 100 kW in capacity.
Geothermal Systems. The credit is equal to 10% of expenditures, with no maximum credit limit stated. Eligible geothermal energy property includes geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit. For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electric transmission stage.
In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken.
The U.S.D.A. grant timetable for 2012 has not been announced. Total funding for this program in 2012 has been reduced by almost two-thirds from the 2011 figure. Qualifying commerical projects are eleigible for a 25% award.
Solar. The credit is equal to 30% of expenditures, with no maximum credit limit stated. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. (Passive solar systems and solar pool-heating systems are not eligible.)
Small Wind Turbines. The credit is equal to 30% of expenditures, with no maximum credit limit for small wind turbines placed in service after December 31, 2008. Eligible small wind property includes wind turbines up to 100 kW in capacity.
Geothermal Systems. The credit is equal to 10% of expenditures, with no maximum credit limit stated. Eligible geothermal energy property includes geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit. For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electric transmission stage.
In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken.
The U.S.D.A. grant timetable for 2012 has not been announced. Total funding for this program in 2012 has been reduced by almost two-thirds from the 2011 figure. Qualifying commerical projects are eleigible for a 25% award.
OHIO GRANT INFORMATION
The current Ohio State Government has discontinued all state grants for renewable energy.
The current Ohio State Government has discontinued all state grants for renewable energy.
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RENEWABLE ENERGY CREDITS
More than 20 states have passed laws requiring commercial energy producers to supply varying percentages of the energy they sell from renewable sources by certain dates or be penalized. Ohio passed such a law requiring energy companies to provide 12˝ % of their power from renewable energy by 2024. They will have to pay a fine if they do not reach that percentage. However, they can offset that fine by purchasing renewable energy credits (RECs) from renewable energy producers. A renewable energy credit is one-megawatt hour, which is 1,000 KWhs. A 10,000-watt solar system in northern Ohio would produce approximately 15 credits per year.
Any person or business with a renewable energy system in the State of Ohio is eligible to sell their credits as they are generated, or in advance of being generated in the futures’ market. In order to sell them, application and registration will have to be made with different agencies. If you purchase a solar system from Edison Solar & Wind, we can enroll you with a broker who will register your system with the various agencies necessary to sell your RECs and then sell them for you. You can sell and receive a check for every REC your system generates on a monthly basis.
For 2012 and 2013, the energy companies would have to pay $350 as a penalty for each 1,000 KWhs of generation or offset that penalty by buying one REC. Obviously they will buy RECs for a figure less than the penalty amount. They are presently trading in the $300 range. Every two years after 2011, the penalty figure drops by $50 dollars until 2024.
The income from RECs for the remainder of this year and next year is roughly 2˝ times greater than the income from the electricity generated from a solar system at 12 cents per KWh. This has greatly reduced the payback period for solar installations and resulted in a large profit over their production lifetime.
It should be noted that the price for RECs is based on supply and demand. At this time it appears that the demand will continue to exceed the supply for the foreseeable future keeping the price high. RECs from wind do not have the value of solar RECs trading presently in the five-dollar range.
More than 20 states have passed laws requiring commercial energy producers to supply varying percentages of the energy they sell from renewable sources by certain dates or be penalized. Ohio passed such a law requiring energy companies to provide 12˝ % of their power from renewable energy by 2024. They will have to pay a fine if they do not reach that percentage. However, they can offset that fine by purchasing renewable energy credits (RECs) from renewable energy producers. A renewable energy credit is one-megawatt hour, which is 1,000 KWhs. A 10,000-watt solar system in northern Ohio would produce approximately 15 credits per year.
Any person or business with a renewable energy system in the State of Ohio is eligible to sell their credits as they are generated, or in advance of being generated in the futures’ market. In order to sell them, application and registration will have to be made with different agencies. If you purchase a solar system from Edison Solar & Wind, we can enroll you with a broker who will register your system with the various agencies necessary to sell your RECs and then sell them for you. You can sell and receive a check for every REC your system generates on a monthly basis.
For 2012 and 2013, the energy companies would have to pay $350 as a penalty for each 1,000 KWhs of generation or offset that penalty by buying one REC. Obviously they will buy RECs for a figure less than the penalty amount. They are presently trading in the $300 range. Every two years after 2011, the penalty figure drops by $50 dollars until 2024.
The income from RECs for the remainder of this year and next year is roughly 2˝ times greater than the income from the electricity generated from a solar system at 12 cents per KWh. This has greatly reduced the payback period for solar installations and resulted in a large profit over their production lifetime.
It should be noted that the price for RECs is based on supply and demand. At this time it appears that the demand will continue to exceed the supply for the foreseeable future keeping the price high. RECs from wind do not have the value of solar RECs trading presently in the five-dollar range.
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