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Current Live Commercial Solar Sites:
1. Lighthouse Masonry
2. Whaling City Transit
3. Saphire Estate
4. Ralph Pollack DMD
5. Beaumont Solar Co (aka Cavallo-Cavallo, Inc)
6. Crosby & Baker, LTD
7. Woods Hole Group
8. Kingman Yacht Center #1; Kingman Yacht Center #2; Kingman Yacht Center #3
9. Kingman Yacht Center Summary
10. Teaticket Market
11. Luke's Residence
Residential System Cost versus Rebates:
NOTE: Commonwealth Solar Rebate Program is now referred to as Commonwealth Solar II and Commonwealth Solar Stimulus
The application process, award requirements and forms are now available at www.masscec.com
5,000 watt or 5KW project (rough area equal to 325 sq ft.)
Rough Cost of a Turnkey SunPower 5KW Solar System:
Including permit application, State Rebate application, NSTAR interconnect application.
$39,000
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Residential Rebate Matrix
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Rebate Matrix ($ per watt)
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Old Rates (2008)
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New Rates
(effective 1/1/10)
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Base Incentive
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$2.00
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$1.00
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MA Manufacturer Adder
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$0.25
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$0.10
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Moderate Home Value
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$1.25
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either $1.00 or
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Moderate Income Adder 1
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$1.00
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$1.00
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Moderate Income Adder 2
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$2.00
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N/A (included in above)
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Mass Technology Collaborative (MTC) Rebates Available:
- $1/ watt base rate = $5,000
- $1.00/watt moderate income < $75,810 or < $95,420 for last Tax return = $6,250*
- see below for income brackets or
- Moderate Home Value Adder- $1.00/watt
- MA Manufacturer adder - $.10/watt
- Total CSII Available rebates = $10,500
State Investment Tax Credit
Federal Investment Tax Credit* see below
- 30% of investment or .3 x $39,000 = $11,700
Total Incentives including tax credits = $23,200
New DOER Solar REC program = $.3/kwh to $.6/kwh
5kW solar system should generate 5,700 kWh/year which equates to another $1,710/year in cost offset.
Net Cost of system after incentives = $15,800
Annual savings on power plus SRECs = 5,700kwh x $.21/kwh(power rates) = $1,197/yr + $1,710 = $2,907
Simple payback on System = $15,800/$2,907 = 5.4 years.
Rebates may be considered taxable income to the Rebate Recipient by the Internal Revenue Service of the United States of America and the Department of Revenue of the Commonwealth of Massachusetts. Rebate Recipients are strongly encouraged to consult with a tax professional to determine the federal and/or state tax implications of receipt of the Rebate. The Rebate Recipient is responsible for any federal or state tax liability incurred as a result of the Rebate. Please note: A rebate tax liability may exist for the Rebate Recipient regardless of whether the payment is made directly to the Rebate Recipient or to the Installer for the benefit of the Rebate Recipient.
Commonwelath Solar Stimulus: (CSTIM) Commercial System Cost versus Rebates:
Please note that the Block 2 funding of this CSTIM program was oversold in the first 15 minutes. We are expecting rebate award announcements in early May. In addition the MassCEC is not expecting to receive any additional ARRA funding for this program, as a result the program will revert to the new SREC program offerred by the DOER.
- 100KW System
- Power Output at Optimum angles = 122,400 kw-hrs/yr.
- Turnkey Cost Estimate $700K
- CS Stimulus Rebate = ($112K)
- Federal Investment Tax Credit = ($210K) ii
- REC Sales = $.03/kw-hr = ($11K)/3yrs.
- SREC Sales = $.3/kwh = ($110K)3 yrs
- Tax Add back for rebate =.38 x112K= $42K
- Depreciation = (700K-210K/2)x.413= ($289K)
- Net cost = $10K after three years
- Value of Power = $20.7/yr.
- Simple Payback = ~3 years
ii = assumes that commercial entity takes rebate as taxable income
Tax Disclaimer:
oThe above examples are for ILLUSTRATIVE PURPOSES ONLY and do not necessarily demonstrate actual tax treatment or tax credit implications associated with Commonwealth Solar Rebates!
oFurthermore, MTC and MRET, and Beaumont Solar recommend consulting a tax professional before making decisions related to rebate tax implications.
Starting in 2008, Commonwealth Solar has $68 million available for funding over the next four years to support PV installations in Massachusetts. The effort combines $40 million from the Renewable Energy Trust (Trust) and $28 million from the Alternative Compliance Payment funds that the Massachusetts Division of Energy Resources has collected under the state’s Renewable Portfolio Standard program. The state estimates that Commonwealth Solar will result in 27 megawatts (MW) of PV projects over the next four years.
For Investment Tax Credit News and Updates see: SEIA Web page:
http://www.seia.org/cs/federal_issues/the_investment_tax_credit_itc
For specific tax examples go to SEIA manual for solar taxation:
http://www.seia.org/galleries/pdf/SEIA_manual_version_1.2.pdf
For all tax treatment go to DSIRE: http://www.dsireusa.org/
For Investment tax Credit FAQ see:
http://www.seia.org/galleries/pdf/ITC_Frequently_Asked_Questions_10_9_08.pdf
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