Over 80% of Montana’s housing stock was built prior to 1980. These homes offer the largest opportunity for Montana to reduce energy consumption through retrofitting and consumer education, as well as a huge opportunity to bolster our local economy by growing the green-collar job sector with verifiers and installers to do this work.

The fact remains that the majority of residents in these 1980 and older homes tend to be first-time home buyers, the elderly, and working-poor. Even when the desire is there, the main sticking point in Montana seems to be the ability for a consumer to cover first-costs on a project. There is a fair amount of assistance out there for those who qualify and are willing to do the work to recover it.

As of late, there has been much debate and confusion over the continuation of certain tax credits, grants and rebates that were implemented during or enhance as part of the American Recovery and Reinvestment Act (ARRA). In many cases, a project must be third-party verified or certified to qualify for some of these rebates or credits.  There is good news and bad news:

The bad news is that a few of these options have shrunk back to pre-recession era levels.

The good news is that there is still a lot of money out there for Energy Efficiency and Renewable Energy applications in the residential and commercial sectors.

ENERGY EFFICIENCY TAX CREDIT:  There has been an Energy Efficiency tax credit around for a while. It was traditionally a 10% credit, maxing out at $500. For the past couple years this was increased to 30% and $1500 cap. For 2011 we are back to the originally levels of 10% and $500 cap. This article offers a great overview of the information for 2011 as well as eligible projects, mounts and forms to get started, scroll down to point 3 for 2011 info.

RENEWABLE ENERGY TAX CREDIT:  The big kicker that keeps on giving is the 30% renewable energy tax credit. It has no monetary cap and is still in place through 2016. This credit can also be carried forward for a few years should you expect a year in the future where it might be more helpful. In addition to the website above, the information at Energy Star is also quite good.

NEW HOME TAX CREDIT:  While these credits are for retrofitting to existing buildings, there are great incentives for new construction as well. A credit of $2000 is still available to home builders who build homes (including both site-built and manufactured homes) projected to save at least 50% of the heating and cooling energy of a comparable home that meets the standards of the 2004 International Energy Conservation Code (the 2003 code including the 2004 supplement). A $1000 credit is available to manufactured home producers for models that save 30% or that qualify for the federal Energy Star Homes program.

In most cases a third-party verifier is needed to qualify that the home is indeed projected to save at least 50% over a comparable home. Businesses should have RESNET or BPI certification and the ability to offer a REM/Rate reading. Other incentives are offered through Northwest Energy Star homes and the NAHB Green program.

CHECK LOCALLY:  It is also a great idea to see what sort of complimentary tax credits or rebates are offered by your state governments and local utilities. In Montana, the Energy Conservation Installation Credit is a tax credit applied against a taxpayer’s income tax liability. Montana resident individuals can claim the credit for energy conservation investments made to a home or other building. The credit is equal to 25% of expenses, up to a maximum credit of $500. Two or more people may each qualify for the credit, as long as the building in which the investment is made is owned by all of the people claiming the credit.

As well, The Alternative Energy System Credit is a tax credit against income tax liability for the cost of purchasing and installing an energy system in a Montana resident’s principal home that uses: (1) a recognized nonfossil form of energy such as, but not limited to, solar energy, wind energy, solid waste, and organic waste; or (2) a low emission wood or biomass combustion device such as a pellet or wood stove. The credit cannot exceed $500. Two or more people may each qualify for the credit, as long as the building in which the investment is made is owned by all of the people claiming the credit. For further instructions on the alternative energy system credit, and to calculate this credit, see Montana Form ENRG-C.

SOLAR PV GRANT IN MONTANA:  As far as utilities go, there Co-Ops and others tend to have different offerings and you’ll have to check with yours for the best information. For much of Montana, Northwestern Energy offers a $6000 grant for Solar PV installations that are at least 2kW in size. The installer must be NABCEP certified for the project to qualify for the grant. Here at SBS both of our installers have the NABCEP certification, so we have a handful of these grants to give away to customers in 2011 and were able to do apply over 10 of these grants to projects in 2010.

MT REVOLVING LOAN FUND FOR RENEWABLES:  As well, here in Montana, we have access to the MT DEQ revolving loan fund. This is a 10-year note at 4% for renewable energy implementation. Each project must be at least 80% renewable energy and can have up to 20% energy efficiency in the mix. That would mean on a $10,000 loan a minimum of $8000 would have to go to renewable implementation and up to $2000 for efficiency implementation. We find that at least half of our customers take the time to go through this application as it is well worth their while.

Here is the breakdown on the rebates for a basic 2kW qualifying solar system for a Missoula household with 2-income earners. A system of this size tends to offset 20-30% of the average MT home’s energy use. Coupled with basic energy efficiency measures and small changes in behavior, it is not uncommon to find 35-50% of energy use offset in the end:

$15,000 2kW Solar PV system
-$6,000 NWenergy PV grant
=$9,000 NET COST
-$2,700 30% Federal Tax Credit
-$1,000 MT Alternative Energy System Credit
=$5,300 NEW Net Cost

If this couple also wanted to implement energy efficiency measures and get the MT DEQ loan, this is a plausible breakdown. They could choose to take the loan based on the gross amount of the System or the net cost at the bottom. If they take it on the gross, this couple would end up having much more than the $3500 allocated below for their efficiency work:

$15,000 2kW Solar PV system (including parts, labor, permits, engineering, etc…)
+ $3,500 extra for some energy efficiency work
= $18,500 TOTAL MT DEQ Loan amount
$ 180 approx. monthly payment

In addition to the federal& state tax credits as well as the utility solar grant in the example above, this customer would also qualify for the additional $500 in federal tax credits from the Energy Efficiency tax credit listed above, as well as numerous rebates from Northwestern Energy with a few more here.

Here at Sustainable Building Systems (SBS) we have the needed certifications listed above in order to work with you on your energy efficiency projects.  Of course, SBS is not a licensed tax preparer and more information on tax credits and energy efficiency incentives is available at www.dsireusa.org .  This summary in no way constitutes guaranteed savings; we recommend consulting an accountant to verify how tax credits apply to you.

If you would like more information of getting started with an energy audit, implementing energy efficiency measures or a renewable energy application, give a call today: 406/541.8410 or visit us at www.SBSlink.com. Here you’ll find access to our Solar Calculator and a basic questionnaire on getting started with SBS.

Remember, the Greenest Energy is the Energy We Don’t Use.

Molly Bradford
Marketing Director
mbradford@sbslink.com

Now this is something I am excited about. My mom sent me the link to this video over the weekend and she is right on. Solar Highways. If we were able to construct a save road, parking lot, highway materials w/ photovoltaics under super strong glass we could harness enough energy to cover ALL USA ENERGY NEEDS PLUS 15%!!!

Let that resonate for a moment.

No oil based electricity.

No coal powered electricity.

All solar. ALL SOLAR.

They even go on to explain how post consumer waste, otherwise headed for landfills, would be the source, mixed with other organic materials, to form the base and structure for the panels.

And finally, from a safety perspective, they plan to include embedded LED lights, powered by the solar, that would be used for a myriad of reason like lighting up crosswalks, giving messages like “SLOW DOWN, CONSTRUCTION AHEAD,” changes in speed limit, etc…

Watch the entire video here.

As I was noodling around in related news, I came across another neat happening in the past year. The State of Oregon is putting together some of the first highway solar projects along the highway like the arrays along the autobahn in Germany.

You can view that video here.

This is a great article from the NY Times Energy and Environment blog about Passive House trending, standards, technology and more. One of our Energy Technicians, Zandy Sievers, recently finished the Passive House training this summer with Katrin Klingenberg, the director of the Passive House Institute-U.S. based in Urbana, Ill.

The story concedes that while the upfront costs can be 15-50% higher, the lifetime energy consumption is roughly 80% less than a normal home.  Even this Vermont home will need no furnace, with heat generation coming from radiant floor heat and a small wood stove.  Their hot water will be heater with solar thermal tubes.

Read the entire story here and check out the video below.

WOW – 120 solar site assessments!

That right, out of the 300 participants in the City of Missoula’s Green Blocks Program we were chosen by 120 participants to do solar site assessments.  This is great news.  I had hoped we’d be a popular Side Order, but this blew our minds.  In fact, we are even getting a second intern from the UM-COT energy program to help with the work load!

Over the next 6-week our interns will be going block by block through the 120 sites to do a basic assessment with our Solar Pathfinder.  We will contact folks a week in advance so they know their block is up next.  Then we’ll do a quick visual assessment and/or a Pathfinder assessment in each yard.

Each participant will be told if they are a good, fair or poor site, why, and what options are available to them according to their results (i.e. PV, Thermal or other renewables like ground source heat pumps).  We will also provide info on available grants, tax credits, rebates and financing for their Solar and Renewable options.

SBS is very excited to be working with the City of Missoula, Northwestern Energy, the COT’s Energy degree program and all of the other Green Blocks Side Orders.  This really is a model public-private project to be duplicated.

SBS is about to begin it’s first SOLAR BLITZ!  From September 15 – October 10th we will really be showcasing, educating and selling our Solar PV expertise.

As a NABCEP certified Solar Installer, SBS has been given a number of $6,000 PV grants from Northwestern Energy to give to YOU… residential and commercial customers.

Couple this with the 30% Federal Tax Credit and the $500 per MT tax payer State Tax Credit and you can get into a 2kW Solar System for under $5,000!

Add to that the potential for financing through the Montana DEQ revolving loan fund (4% financing for 10 years, oac) and you can now get into solar with no money down!

To sweeten the pot further, all new customers between Sept 15 and Oct 10, 2010 will receive a FREE professional home or building energy efficiency audit with analysis.  This is a $750 value.

Contact us to get started with solar today – 406.541.8410, www.sbslink.com, info@sbslink.com

Molly Bradford
Marketing Director

We finished the off-the-grid system in Maui in June of 2010 and it seems to be working wonderfully all summer.

All in all, we installed a 5.6 kW solar array, battery bank and inverter system on the island of Maui for an off grid facility. The system powers a main house, two guest houses and a pool house.

We had fun with this project as it is located in such a beautiful part of the world and the local Hawaiians where integrally involved in the installation work. Because the system is beyond the power lines we employed a large battery bank and backup generator fired by propane. This system design varies greatly from grid connected systems where batteries are seldom employed as the power grid serves as “financial” power storage.

Cloud cover and precipitation vary extremely from 12 to 360 inches per year depending upon the microclimate which made the system sizing a bit more challenging. To compensate for this variable we included a 30 kW generator and four inverter/battery chargers which can recharge the batteries in several hours time.

Here is our photo show of the final install, inverter and battery bank, etc… If you want captions, please click on the image below and then on the icon in the lower right w /the four-arrows for full-screen mode.

Dan Bradbord, SBS Solar Guru

dbrandborg@sbslink.com

The Montana Radio Company and Sustainable Building System’s have teamed up to bring Cool Green Home to Missoula, where over $135,000 in home renovations will be given to a few lucky Missoula homeowners.

The project was started with a simple idea, take an existing Missoula home and create a “showcase” for energy-efficient and sustainable products offered by local businesses.  It has gained so much attraction that 24 area businesses have partnered with us on this unprecedented project, and each will contribute in their area of expertise.

Our goal is to show our community that sustainable and green homes are not only good for our planet but good for our bank accounts, and with planning, big improvements can be made with modest steps.  We intend on setting an example as to what a sustainable green home could look like.  We don’t intend on building one from ground level but getting an existing home started on the path to green. We will start the home remodel by completing an energy audit of the home to identify the best places to improve the energy efficiency.  For the next year we will continue to monitor the Cool Green Home and track how much money the family saved in energy costs and how their lives improved.

We received over 180 applications from Missoula-area homeowners and paired them down to a set of 10.  From here the winners were chosen.  Congratulations to our winning homes:

• Elke Govertsen & Paul Donaldson
• Jana & Chuck Doyle
• Ross & Norma Nickerson
• James Dodge & Jenny Daniel
• Paula Raines & Michael Hoffer

Keep checking here and at www.CoolGreenHomeMissoula.com for updates and information on the progression at these five homes.  And if you entered and were not a winner, do not fret, there are great tips and DIY projects associated with this year’s projects and we’re already looking to 2011 for another round.

SBS is proud to be an official Side Order of the City of Missoula’s 2010 Green Blocks program. This residential energy conservation project aims to bring free energy efficiency upgrades to 300 Missoula homes!

The City of Missoula and NorthWestern Energy are launching their second Green Blocks Residential Energy Conservation Pilot Project this week. The partnership aims to provide free energy audits and free home energy-saving improvements such as programmable thermostats and insulation for 300 Missoula homes. The program also includes free water-wise audits and improvements from Mountain Water Company.

The new pilot project has an additional feature we’ve called Green Blocks Side Orders, a package of City of Missoula programs offered exclusively to Green Blocks participants. Participants can choose from a menu that includes discounts on locally manufactured Clawson Windows, waterwise landscape planning, professional solar site assessments from SBS, education and help establishing food gardens, and more. The Side Orders program is made possible by our partners in private business and nonprofits.

Official Green Blocks contacts are

Chase Jones, EECBG grant administrator, 258-4908, cjones@co.missoula.mt.us; cell phone 207-4868

Danie Williams, NorthWestern Energy, 497-3516, danie.williams@northwestern.com.

This is a great, and short, video from TED U, the interactive learning component of The Energy Detective (TED) device.

Here Catherine Mohr shares some quick and valuable information on evaluating simple life choices as they relate to energy and water consumption… paper towels v sponge v washcloth all the way to building a new home.

Missoula County has officially chosen green as their new motto for remodeling, designing and operating county facilities.  Developed by the county’s new Green Government Committee, the policy states that LEED (Leadership in Energy and Environmental Design) methods and techniques be incorporated by county offices and departments.

SBS gives this a [green] thumbs up!

According to the policy text, the goals of the county’s policy include improving employee health and productivity and creating local jobs. It’ll also “achieve the highest, most cost-effective environmental performance possible over the life of county projects.”

One part that we at SBS find compelling is the fact that, unlike efforts in King County in WA and Portland, OR, that target a certain level, Missoula will seek “the highest level achievable under LEED that’s cost-effective based on the long-terms costs and the limits of available funding,” according to Peter Nielsen, environmental health supervisor for the City-County Health Department.

This meshes quite will with a large part of the SBS mission – we recognize that cost must play a roll in the planning process of all green building and renewable energy implementation.  It is for this reason that we’ve take a more “realist’s” approach to our energy efficiency and renewable energy work, opposed to an “absolutist’s.”

SBS looks forward to how this will unfold for Missoula County.  To read the rest of the article in the Missoulian, click here.

For more information on SBSs work in renewable energy, energy efficiency, retrofitting, LEED consulting, and more… visit us at www.SBSlink.com.

Molly Bradford
Marketing Director
mbradford@sbslink.com