Solar San Diego

Federal Tax Credits for Energy Efficiency

The Federal Government's Energy Star program website has a rundown of Federal Tax Credits for Energy Efficiency for consumers including those for home improvements, auto purchases and alternative energy.  The incentives are as follows:

SUMMARY OF TAX CREDITS FOR HOMEOWNERS

Product Category	Product Type	Tax Credit Specification	Tax Credit	Notes
Windows & Doors	Exterior Windows and Skylights	ENERGY STAR qualified OR meets IECC1	10% of cost, up to $2002 for all windows, skylights and storm windows	All ENERGY STAR labeled windows and skylights qualify for tax credit.Learn more about ENERGY STAR qualified windows and skylights. Installation costs are not included. For tax purposes, save your receipt and either the ENERGY STAR label from all your new windows OR the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Storm Windows	Meets IECC1 in combination with the exterior window over which it is installed, for the applicable climate zone	10% of cost, up to $2002 for all windows, skylights and storm windows	Manufacturer Certification Statement3will list classes of exterior window (single pane, clear glass, double pane, low-E coating, etc.)4 that a product may be combined with to be eligible in specific climate zones. Installation costs are not included. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Exterior Doors	Meets IECC1	10% of cost, up to $5002	ENERGY STAR doors will almost always qualify, except for certain parts of California4. Learn more aboutENERGY STAR qualified doors. Installation costs are not included. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Storm Doors	In combination with a wood door assigned a default U-factor by the IECC1, and does not exceed the default U-factor requirement assigned to such combination by the IECC	10% of cost, up to $5002	Eligibility will be confirmed by manufacturer and documented in the Manufacturer Certification Statement3 Installation costs are not included. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Roofing	Metal Roofs,  Asphalt Roofs	ENERGY STAR qualified	10% of cost, up to $5002	All ENERGY STAR labeled metal roofs qualify for the tax credit. Must be expected to last 5 years OR have a 2 year warranty. Installation costs are not included. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Insulation	Insulation	Meets 2000 IECC & Amendments	10% of cost, up to $5002	For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, siding does not qualify). Must be expected to last 5 years OR have a 2 year warranty Installation costs are not included. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
HVAC	Central A/C	Split Systems: EER >=12.5 SEER >= 15  Package systems: EER >= 12 SEER >= 14	$3002	For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the “CEE Tier” enter “Residential Tier 2.” Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR specification: Split Systems: EER >= 11.5 & SEER >= 14  Package systems: EER >= 11 & SEER >= 14 Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Air Source Heat Pumps	HSPF >= 9 EER >= 13 SEER >= 15	$300²	Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR specification: Split systems: HSPF >= 8.2 & EER >= 11.5 & SEER >= 14  Package systems: HSPF >= 8 & EER >= 11 & SEER >= 14 Manufacturer’s Certification Statement³ required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Geo-Thermal Heat Pump	Same criteria as ENERGY STAR: Closed Loop: EER >= 14.1 COP >= 3.3 Open Loop: EER >= 16.2  COP >= 3.6  Direct Expansion: EER >= 15  COP >= 3.5	30% of the cost, up to $2,000.	All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Use IRS Form 5695   Must be “placed into service” between Jan. 1, 2008–Dec. 31, 2016.
	Gas, Oil, Propane Furnace or Hot Water Boiler	Furnaces: AFUE >= 95  Boiler: AFUE >= 95	$1502	For a list of qualifying products go to the Gas Appliance Manufacturing Association  Note — not all ENERGY STAR products will qualify for the tax credit. ENERGY STAR specification: Furances: AFUE >= 90 Boilers: AFUE >= 85 Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer’s Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Advanced Main Air Circulating Fan	No more than 2% of furnace total energy use	$502	For a partial list of qualifying products go to the Gas Appliance Manufacturing Association  Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Water Heaters	Gas, Oil, Propane Water Heater	Energy Factor >= 0.80 or a thermal efficiency of at least 90%.	$3002	Note: ENERGY STAR qualified high-efficiency gas storage water heaters will not qualify for the tax credit. All ENERGY STAR qualified whole-home gas tankless and gas condensing models will qualify. ENERGY STAR criteria: Whole-Home Tankless: Energy Factor >= 0.82 Gas Condensing: Energy Factor >= 0.8 For a partial list of qualifying products go to the Gas Appliance Manufacturing Association  Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer’s Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
	Electric Heat Pump Water Heater	Same criteria as ENERGY STAR: Energy Factor >= 2.0	$3002	All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit. Manufacturer's Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Biomass Stove	Biomass Stove	Stove which burns biomass fuel5 to heat a home or heat water. Thermal efficiency rating of at least 75%.	$300	Manufacturer’s Certification Statement3 required. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Must be “placed into service” between Jan. 1–Dec. 31, 2009. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.
Cars	Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles		Based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models	There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. Toyota and Honda have already been phased out. Credit is still available for Ford, GM and Nissan. For more information visit:Fueleconomy.gov  Use IRS Form 8910  for hybrid vehicles purchased for personal use. Use IRS Form 3800  for hybrid vehicles purchased for business purposes.
	Plug-in hybrid electric vehicles		$2,500–$7,500	The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits). Effective January 1, 2009.
Solar Energy Systems	Solar Water Heating	At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household. The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. The system must be certified by the Solar Rating and Certification Corporation (SRCC).	30% of cost, up to $2,000	Use IRS Form 5695   Must be placed in service before December 31, 2016.
	Photovoltaic Systems	Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.	30% of cost, up to $2,000. After January 1, 2009 the $2,000 cap no longer applies.	Use IRS Form 5695   Must be placed in service before December 31, 2016.
Small Wind Energy Systems	Small Wind Energy Systems		30% of the cost, up to $500 per half kW of capacity (not to exceed $4,000)
Fuel Cells	Fuel Cells	Efficiency of at least 30% and must have a capacity of at least 0.5 kW.	30% of the cost, up to $1500 per half kW of power capacity	Must be placed in service before December 31, 2016. Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

¹Either the 2001 Supplement of the 2000 International Energy Conservation Code or the 2004 Supplement of the 2003 International Energy Conservation Code.

²Subject to a $500 maximum per homeowner for all improvements combined.

³A Manufacturer’s Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return.

⁴Additional information on exterior window features may be viewed at Anatomy of an Energy Efficient Window.

⁵Biomass Fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

The IRS defines “placed in service” as when the property is ready and available for use.

California Energy Commission's New Solar Homes Partnership

The California Energy Commission maintains a website regarding its efforts to promote the construction of new energy efficient solar homes.  This website is for new construction, not existing homes.  The front page of the website gives an overview of the program and discusses the definition of a Solar Home, how one can save money and the environment by utilizing solar energy and additional information for consumers, builders and those interested in formal proceedings of the Energy Commission.  Looking into the site, there is more information accessible including planning for energy efficiency first.  

The section regarding planning for energy efficiency starts with a policy statement on energy efficiency and a link to the California Building Energy Efficiency Standards (known as Title 24 Standards).  What follows is a discussion on eligibility for incentives provided under the partnership in both Tier I and Tier II conditions, the first setting a 15 percent reduction in a home's space heating, cooling and water heating energy compared to the Title 24 Standards and the later setting a 35 percent reduction the same energy expenditure as in Tier I while  combining the overall reduction with a 40 reduction in the home's air conditioning energy usage.  Builders need to use the Energystar appliances to which we've all become accustomed in the new homes.  At the end of this page is information on incentives available from local utilities including PG&E, San Diego Gas & Electric and Southern California Edison, determination qualification and how the standards are measured.  Topics including the application process, guidebooks, workshops and training are discussed in the next indexed pages.  A zip code search helps determine if the new home is in a service location of a certain utility and this is eligible to apply for incentives under this program.  The utilities include Pacific Gas and Electric, San Diego Gas & Electric, Southern California Edison and Bear Valley Electric Service.  Eligible equipment, which is listed in the program's guidebook is listed in a page showing eligible photovoltaic modules.  An FAQ, a section on field verification (verifying energy savings) by third party inspector and a calculator  which is designed to calculate incentives get their own treatments.  Additional incentives for new affordable housing applicants is excerpted from the program guidebook.  And finally a discussion of solar tax credits rounds out the information about this program with links available to tax incentives assistance, Energy Star tax credits, a list of state incentives and to IRS form 8908.

For more information about the New Solar Homes Partnership see the following links.

New Solar Homes Partnership Website

New Solar Homes Partnership Guidebook

New Solar Homes Partnership Workshops and Training 

  

Calling for a US Energy Strategy

Daniel M. Kammen writes in the Bulletin of Atomic Scientist about the need for a US Energy Strategy. 

Over the next 50 years, progress to meaningfully address the risk of significant climate change will require an estimated 80-percent or more reduction in global greenhouse gas emissions. Global emissions now include more than 7 billion tons of carbon being pumped into the atmosphere annually, three-quarters of which come from fossil fuel combustion (with the remainder largely from land conversion and forest burning), and their rate of accumulation is increasing.

  Read the entire piece here.

Fortune Mag: Grean Energy Makes Money

"Venture investment in energy technology firms reached new highs this year, more than tripling the investment recorded for 2005, according to data released Wednesday by Thomson Financial and the National Venture Capital Association." states an article in Fortune Small Business.

Clean Energy Gold Rush North of the Border

Straight.com has an article about investment in clean energy companies north of the border in British Columbia. Read the article here.

Wind Energy Reseach Plan Meeting at UC Davis

The California Wind Energy Collaborative is hosting a "workshop on 11 December 2007 to gather input toward development of a Wind Energy Research Plan for California. The research plan will identify and prioritize wind energy research, development, and deployment efforts that will facilitate California's renewable energy policy goals."

Tech Companies that Could Change The World

From the Red Herring comes a story about the World Economic Forum naming "startup technology companies that the international organization said have demonstrated visionary leadership and proven technology that could change business and society." See the World Economic Forum list here.

Schott Supports Club of Rome Concept

From Schott Solar, a press release indicates their support for the Club of Rome energy concept.

Today, the former President of The Club of Rome, Prince Hassan bin Talal from Jordan, presented the White Book "Clean Power from Deserts - The DESERTEC Concept for Energy, Water and Climate Security" from the Club of Rome's Trans-Mediterranean Renewable Energy Cooperation (TREC) initiative to the European Parliament in Brussels. According to the White Book, Europe should cooperate more closely with the Middle East and North Africa (MENA region), in order to combat climate change "in a way that is economically, technologically and politically feasible". Key technologies in the DESERTEC Concept are concentrating solar thermal power plants and high-voltage direct-current transmission lines for transporting clean electricity from the MENA region to Europe (see press release from the German Association CLUB OF ROME dated 11/27/2007 under http://www.desertec.org//).

As a leading manufacturer of solar receivers, SCHOTT supports this initiative from the Club of Rome. "Solar thermal power plants offer an excellent solution for industrial scale generating electricity in the sunniest regions of the earth. This technology is on its way to achieving its global breakthrough and is capable of contributing towards more climate-friendly power generation. In addition, it offers the opportunity to achieve infrastructural and energy-related advances and promote the economic development of the southern and eastern Mediterranean region," said Professor Udo Ungeheuer, Chairman of the Board of Management of SCHOTT, upon the presentation of the White Book in Brussels.

Receivers from SCHOTT Solarthermie in Mitterteich (Bavaria/ Germany) represent the heart of solar thermal parabolic trough power plants. These plants consist of a large field of trough-shaped parabolic mirrors that concentrate sunlight onto absorber tubes (receivers) located along the focal line. Concentrated solar radiation is converted into heat inside these specially coated receivers. Then, a special heat transfer fluid that reaches temperatures of up to 400° Celsius (over 750° F) flows through the receivers and is pumped to the main power plant generator. It then passes through heat exchangers, before it generates the steam needed to drive the turbines, as in conventional power plants.

The technology behind parabolic trough power plants has been proving itself in the Mojave Desert in California for more than 15 years. Now, even more efficient power plants of the second generation are being built. The "Nevada Solar One" parabolic trough power plant built by Acciona Energy North America, located in Boulder City, near Las Vegas, Nevada (USA), began supplying power to the grid in June. In the summer of 2008, Europe's first commercially operated parabolic trough power plant "AndaSol" located near Granada, in Andalusia / Spain, will join the grid. Receivers from SCHOTT were used in the "Nevada Solar One" power plant and are also being put to use in the "AndaSol" power plant. When it comes to receivers, SCHOTT clearly ranks as the global technology leader. The company is currently building a second manufacturing site for receivers in Spain.>

OpEd: Congress Must Legislate (Renewable) Energy

The Honolulu Star Bulletin recently had an opinion piece regarding the stalling of energy legistlation in Congress. 

CHANCES that Congress will adopt legislation necessary to move the nation away from reliance on imported oil and reduce greenhouse gas emissions have dimmed as short-sighted lawmakers have been unable to set aside their narrow interests.

After a week of debate, Republicans in the Senate choked off further advancement, balking at a proposal to require electric companies to generate a modest 15 percent of power from renewable sources by 2020.

Read the entire editorial here. 

Farm Runs On Solar Power

The San Diego Union Tribune has a piece on a farm in Fallbrook that uses solar energy by utlizing "one of the largest private photovoltaic installations in the United States."