IRE Solar recently polled homeowners and local businesses in Gainesville, Florida and found that only 10% of people polled knew about the Feed-in-Tariff program that GRU (Gainesville Regional Utilities; Gainesville's local power provider) offers. This information is shocking because Gainesville is internationally recognized as a 'green pioneer' and an example to the world of how programs like this can work to help families and small businesses benefit and profit from renewable energy technologies.
1. Net-Metering
Most of the time the solar systems that people own generate electricity that is delivered directly back into the grid (the power company; the existing power infrastructure, i.e. power lines, transformers, etc.). Net-metering is when the power company pays dollar-for-dollar for the electricity created by solar, wind or any other grid-tied alternative power generation systems. This means that any electricity that is generated by these grid-tied system will in essence “turn back” the meter on the power used within a home or business providing positive credit from the utility company.
2. Feed-in-Tariff
This program is being adopted around the planet and it seems to have the greatest potential value towards the end-users in small, medium, large and even power production capacities. It is just like net-metering, but instead of dollar-for-dollar, the power company pays more for the power produced by the grid-tied system. In Gainesville, Florida the feed-in-tariff program, or FIT Program as it is also known, is currently providing $0.32 per kilowatt hour produced by newly installed systems. In most cases, the average price paid by the consumer is around $0.12 per kilowatt hour. Over time this type of program provides the opportunity for investors to make money on their systems, not just save money on utility bills. The best time to buy a solar system is when your local utility company sponsors incentive programs like this. The best incentive program on the market right now, hands down, is the feed-in-tariff.
3. Government Subsidies
Sometimes state and local governments sponsor programs that offer subsidies for families or businesses that are interested in investing in solar or other renewable energy endeavors. These subsidies and programs vary greatly, but these programs enhance the value of a renewable energy investments. For more information on potential programs in your state and local area, please refer to the DSIRE chart on our website at
www.iresolar.com or
www.bestbuysolar.com.
4. Tax Incentives
IRE highly recommends that if you are interested in investing in a solar system, or similar renewable energy technology, you should meet with a Certified Public Accountant (CPA) to start the process. There are many tax related ways of minimizing the costs of renewable energy or solar investments. The federal government is sponsoring a 30% rebate that can work towards taxes or that currently can be used to supplement 30% of any home or business repairs that are involved and include the installation of any approved solar or wind system. This includes repair to your roof if needed in addition to the installation of any "green" investment, including lower priced systems like solar hot water systems, which are good for lowering utility costs in your home or business and are a fraction of the cost of a solar electric system. For some residential situations, and indeed most business applications, the cost of the products and materials that make up the system; that is the prices for the solar panels, the mounting hardware and all that makes the panels connect to the grid or battery system, can be depreciated over a short time. This essentially means that if you qualify, the costs of your entire solar system and all of it's hardware can be written off of your taxes. For more information, please speak to a Certified Public Accountant (CPA) about: Depreciation, Federal Tax Credits, and all other benefits the Federal, State and Local Government may be offering in your area.
5. Appraisal Positive
There are a many added benefits of adding solar to your home or business, like sales the tax-free status of certain approved renewable energy installations, limits on Home Owners Associations (HOA) enforcement with regards to regulations impeding the installation of renewable energy additions on homes in certain states and cities. For complete information on this, we recommend contacting your Home Owners Association (HOA), a Certified Public Accountant (CPA) and a local appraisal company or agency. “Appraisal Positive” is a recently coined phrase that defines the specific rules associated with solar additions to property values. An appraiser will not increase the value of solar additions to a residential or commercial property with regard to increasing property tax value to the IRS. This means that if your property was appraised at $100,000 before solar additions, then it will remain $100,000 for IRS purposes, though putting your property up for market, the additional value of any solar additions would be set by the seller and therefore could be included in the sales price. This is why renewable energy additions are classified as investments all over the world, and like all kinds of investments, it is important to weigh all the details before making any decisions. For more information, please respond to this blog or call us at (602) 524-1265 and we will be more than happy to answer any questions you may have.