Money for Nothing and Heat for Free: U.S. Incentives for Solar
Water Heating Ty Gorman North Carolina Solar Center Database of
State Incentives for Renewables and Efficiency (DSIRE)
www.dsireusa.org InterSolar North America July 13, 2011
Slide 2
Things to Cover Using DSIRE for solar hot water heating
incentives The federal and state incentive landscape Utility and
private incentives and innovations
Slide 3
DSIRE and Solar Hot Water Heat The DSIRE Search Tool is your
best friend:
http://www.dsireusa.org/searchby/index.cfm?ee=1&RE=1http://www.dsireusa.org/searchby/index.cfm?ee=1&RE=1
Slide 4
DSIRE Solar Portal Interactive Policy Map: Provides quick
access to state-specific solar information Solar Policy Guide:
Offers descriptions of various state and local policy types for
promoting solar; status and trends of individual policies; specific
policy examples; and links to additional resources Summary Maps:
Provide geographical overview of incentives across the country
Solar Policy Comparison Tables: Highlight individual elements of
state rebate and tax credit programs myDSIRE For-Fee Services:
Custom DSIRE data feeds and updates beyond the scope of free public
resources.
Slide 5
The Federal Incentive Landscape Business Energy Investment Tax
Credit (ITC) Federal Business Energy Investment Tax Credit (ITC)
MACRS Residential Renewable Energy Tax Credit Federal Residential
Renewable Energy Tax Credit U.S. Department of Treasury - Renewable
Energy Grants Federal U.S. Department of Treasury - Renewable
Energy Grants Residential Energy Conservation Subsidy Exclusion
(Personal)
Slide 6
State Incentives and Examples Incentive Types State/Utility
Direct Incentives: Production, Grants, Loans Tax Incentives:
Credits, Sales, Property RPS: SWH in Solar Carve Out (REC Sales)
Around 43 states offer direct incentives for solar thermal systems.
These incentives, which typically cover 20% to 50% of project
costs, have played a significant role in encouraging solar
installations.
Slide 7
Financial Incentives for Solar Water Heating
www.dsireusa.orgwww.dsireusa.org / April 2011 Direct Cash Incentive
Tax Credit VT NH MA RI CT NJ MD U U U U U U U U U U U U U U.S.
Virgin Islands Puerto Rico U Direct Cash Incentive and Tax Credit
DC Sales Tax Incentive Property Tax Incentive Tax DeductionUtility
Direct Cash Incentive(s) Local option to provide property tax
incentive U $ $ Local option to provide sales tax incentive $ U $ $
$ $ $ $ $ $ $ $ $ $ $ $ $ U $ U U U U U 41 states + DC, PR &
USVI offer financial incentives for solar water heating 41 states +
DC, PR & USVI offer financial incentives for solar water
heating
Slide 8
Direct Cash Incentives for Solar Projects
www.dsireusa.orgwww.dsireusa.org / April 2011 State Direct Cash
Incentives for PV State Direct Cash Incentives for Solar Water
Heating State Direct Cash Incentives for both PV and Solar Water
Heating U U U U U U U U U U U U U U U UU U U U U U U U U U VT NH MA
RI U Utility Direct Cash Incentive(s) for PV and/or Solar Water
Heating U U.S. Virgin Islands U U DC Puerto Rico U U U U 28 states
+DC, PR & USVI offer direct cash incentives for solar
projects
Slide 9
State Rebates for Solar Projects
www.dsireusa.orgwww.dsireusa.org / April 2011 State PV Rebates
State Solar Water Heating Rebates State PV and Solar Water Heating
Rebates U.S. Virgin Islands 21 states + DC, PR & USVI offer
rebates for solar projects 21 states + DC, PR & USVI offer
rebates for solar projects Puerto Rico DC
Slide 10
State Loan Programs for Solar Projects
www.dsireusa.orgwww.dsireusa.org / April 2011 Loan Programs for
Solar Projects Utility Incentive(s) U U U U U U U U U U U U 31
states + USVI offer loans for solar projects 31 states + USVI offer
loans for solar projects DC U.S. Virgin Islands U U U U U
Slide 11
State Tax Credits for Solar Projects
www.dsireusa.orgwww.dsireusa.org / April 2011 Incentives for
Residential Projects Incentives for Commercial Projects Incentives
for Residential and Commercial Projects Applies to Solar Electric
only 21 states offer tax credits for solar projects 21 states offer
tax credits for solar projects DC
Slide 12
State Property Tax Incentives for Solar Projects
www.dsireusa.orgwww.dsireusa.org / April 2011 Local Option for
Property Tax Incentive Applies to Solar Water/Space Heating Only
Applies to Solar Electric Only Property Tax Incentive Puerto Rico
30 states + PR offer property tax incentives for solar projects 30
states + PR offer property tax incentives for solar projects DC
State Property Tax Incentive and Local Option for Property Tax
Incentive Puerto Rico
Slide 13
State Sales Tax Incentives for Solar Projects
www.dsireusa.orgwww.dsireusa.org / April 2011 Sales Tax Incentive
Applies to Solar Electric Only Puerto Rico DC State Sales Tax
Incentive and Local Option for Sales Tax Incentive 21 states + PR
offer sales tax incentives for solar projects 21 states + PR offer
sales tax incentives for solar projects
Slide 14
RPS Policies with Solar/DG Provisions Renewable portfolio
standard with solar / distributed generation (DG) provision
www.dsireusa.orgwww.dsireusa.org / June 2011 Solar water heating
counts toward solar provision WA: double credit for DG NV: 1.5%
solar x 2025; 2.4 - 2.45 multiplier for PV UT: 2.4 multiplier for
solar-electric AZ: 4.5% DG x 2025 NM: 4% solar-electric x 2020 0.6%
DG x 2020 TX: double credit for non-wind (non-wind goal: 500 MW)
CO: 3.0% DG x 2020 1.5% customer-sited x 2020 MO: 0.3% solar-
electric x 2021 MI: triple credit for solar- electric OH: 0. 5%
solar- electric x 2025 NC: 0. 2% solar x 2018 MD: 2% solar x 2022
DC: 0.4% solar x 2020 NY: 0.4788% customer- sited x 2015 DE: 3.5%
PV x 2026; triple credit for PV NH: 0.3% solar- electric x 2014 NJ:
5,316 GWh solar- electric x 2026 PA: 0.5% PV x 2021 MA: 400 MW PV x
2020 OR: 20 MW solar PV x 2020; double credit for PV IL: 1. 5% PV x
2025 WV: various multipliers 16 states + DC have an RPS with
solar/DG provisions DC
Slide 15
Succesful SHW Incentive Design Stable, long-term funding that
decreases over time. Adequate system performance. Quality-assurance
and trained technicians. Concise application process and
flexibility. Commitments for public buildings. Program evaluation.
Low-interest financing, standardized permitting, solar access laws,
and tax incentives. Educate and market
Slide 16
Innovative Non-government SHW Incentives FLS Solar hot water
lease Commercial solar water systems can cost anywhere from
$100,000 to $10 million. FLS signs 10 year contracts for the water,
then gets subsidies from local utilities, who use FLS to meet their
own green power commitments to state government. Lakeland /
Regenesis hot water service Solar water heater, including
installation and service, for $35.95/ month with a 20-year price
guarantee and no additional fees. Customers pay the monthly fixed
price along with their electric bill, and save electricity costs.
States or local governments passing solar ready homes requirements
Colorado Tucson, AZ
Slide 17
Ty Gorman North Carolina Solar Center DSIRE (www.dsireusa.org)
myDSIRE Services (www.myDSIREusa.org) [email protected]
919-513-0648 [email protected]