Tag Archives: energy star

Green Blocks – Final Phase

SBS has had a wonderful and successful time on the side-order list for the City of Missoula’s Green Blocks energy saving program.

We began work back in the Fall of 2010 by getting 2-inters from the University of Montana’s COT Energy Program and got them fully trained on doing a basic solar site assessment.

Our Team ended up doing over 120 assessments over the course of 3-months last fall.  They braved blazing sun, side-ways rain and blowing snow from October – December.  But, it was well worth it.

This spring 2011 marked the final phase of this project.  The City added about 60-90 participants to get to their total count of 300.  We got ourselves another COT Energy intern for this past Spring and he went out and did about 48 more solar site assessments.

Half way through this phase we saw an 18% REDUCTION in the cost to install solar, plus the state and feds decided to KEEP the tax credits in place for renewable, Northwestern Energy gave us a dozen more $6k grants to hand out to customers in good standing, and the MT DEQ revolving loan fund keeps on chugging along (although they are 8-10 weeks out on funding).  To top it off, SBS starting taking credit cards for deposits.

The wet cold spring made for a slow start, and with the unseasonably cool summer, folks were not thinking about solar.  But with the aforementioned incentives, and a little 90 degree weather, we are in full swing.  Over half of the installs we’re doing in July and August came from Green Blocks leads and SBS is now booked out until September.

Thanks to the City of Missoula for this great opportunity!  We’d love to do it again.

If you’re interested in information about solar – get in touch: www.SBSlink.com or info@sbslink.com.

There is Hope: Energy Efficiency and Solar Energy Tax Credits & Grants for 2011

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

SBS Teams up with “Cool Green Home”

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.

Embodied Energy Tidbit

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.

Introducing Our New Green Window

Window

The Clawson NorthSlope Window, Montana-Made with sustainably harvested Larch and US Glass

Okay, it’s not really our window per se.  But that doesn’t stop us from being excited about SBSs new relationship with the exceptionally rad window.

We are pleased to announce our official relationship as a dealer of one of the most unique, greenest, and most handsome windows manufactured anywhere in the world – the NorthSlope Window by Clawson.  Framed in Treadlight™ larch, harvested only from forest restoration sites, this window highlights the beautiful honey and cinnamon grain and dark pinhole knots of the wood, while giving high performance in energy efficiency and durability.

The NorthSlope Window incorporates a top–of–the–line, energy–efficient spacer system with high–performance, double Low–E glass to offer unmatched thermal performance, meeting Energy Star requirements.  Because these products are manufactured by U.S. regional glass makers, there is the added value of still greater “locally sourced” benefits.  The window contributes toward satisfying several credits under green–building rating systems, including LEED® and NAHB’s National Green Building Program.

Read the rest of the store at Treadlight by NorthSlope Sustainable Wood.

Zandy’s New Bio…

SBS is proud to announce (okay, we’re bragging a bit, but you’ll understand why)… that our very own Zandy Sievers  was appointed to the City of Missoula’s Greenhouse Gas and Energy Conservation Team!  He says, “Hopefully my say will have an effect on local energy reduction measures!”

As if that weren’t enough, Zandy is also on a 7-person verifier panel shaping the functionality of the green scoring tool for  NAHB Research Center’s National Green Building Standard.  The City of Missoula is about to incentivize  the NGBS for local green builders.  How yet, the panel is not sure.

Here is Zandy’s new bio:

Alexander (Zandy) Sievers, SBS Project Technician, began working in the building industry as a handyman, doing everything from plumbing and electrical work to carpentry, while finishing his B.A. degree in Psychology at the University of Montana.  After working in the human service field and a couple years in Geographic Information Systems (GIS), Zandy made his way back into the building industry working as a carpenter and was hired by Eclipse Engineering, Inc. in 2006 as a Structural Draftsman.

In 2008 he convinced Eclipse to support his interest in Green Building and become a NAHB Green Home Verifier for the company.  After completing his Energy Star Verifier and Home Energy Rater training, his interests in ecology and building science led him to Sustainable Building Systems.   Since working for SBS he has been noted by the National Association of Homebuilders (NAHB) as one of the top 15 most active verifiers in the country and has assisted the NAHB research center in developing the scoring tool for the ANSI approved ICC 700-2008 National Green Building Standard.   In May of 2010 he was appointed to the Missoula City Greenhouse Gas & Energy Conservation Team, helping lead the City in conservation measures.

Currently Zandy is studying to be a consultant for the most stringent energy standard in the world, Passive House.  Literally meaning “home that conditions itself” homes certified to the Passive House Institute standard use a tenth of the energy of conventional code built homes.

Zandy and His wife Prairie are bringing sustainability to their neighborhood by starting a small scale CSA garden on their lot in city limits.  They also have chickens, a German Sheppard, a barn yard cat, and a stellar son, Bannin.  Zandy has always had a love for the outdoors and when there is no snow to ski you’ll probably find him Mountain biking or juggling at the farmers market.

We are proud of our staff and their accomplishments.  It’s not just enough for us to talk about green energy around here, we strive to live it and do it, as well.

NICE WORK, ZANDY, YOU MAKE SBS PROUD!

for more information on SBS, Energy Consulting or to talk with Zandy:

Alexander (Zandy) Sievers
RESNET Home Energy Rater, NorthWest Energy Star Homes Verifier, NAHB Green Building Verifier
T/(406)531-3143
zsievers@sbslink.com

Home Star passed by House

The Obama administration has called on Congress to pass a new incentive program for home energy efficiency upgrades called Home star. Created to help bolster the hard hit construction sector and national security by decreasing foreign energy dependence Home star will create tens of thousands of jobs and save home owners billions of dollars in long term energy reductions not to mention green house gases.  Rebates will be provided directly to the consumers and the federal government will reimburse accredited contractors and utilities for efficiency work performed. (SBS does this type of work.)

There are two tiers of the program: Gold star and Silver star.   Gold star is a two-year program that will provide between $3,000-$8,000 for 20%+ modeled savings for home owners.  Homeowners will need an audit by a RESNET HERS Rater or BPI Building Analyst Certified Professional to assess energy savings through improvements before work begins.  Work must be performed by a Gold star accredited contracting company.

Silver star is a one-year program which will qualify homeowners to receive between  $1,000-$1,500 for each qualified efficiency measure, $250 per appliance, with a cap of $3000or 50% of project costs whichever is less. Qualified measures include: air sealing, attic, wall, and crawlspace insulation, duct sealing or replacement, replacement of existing windows, doors, furnaces, air conditioners, heat pumps, water heaters, and appliances with high-efficiency models.  When this bill passes through congress (expected in the next few months) there will be a huge demand for audit and efficiency retrofit work.

The Retrofit for Energy and Environmental Performance (REEP) Program Act has been submitted to the House Energy and Commerce and House Financial Services Subcommitees.  This bill Requires: (1) the Administrator of the Environmental Protection Agency (EPA) to develop and implement standards for a national energy and environmental building retrofit policy for single-family and multifamily residences; (2) the Secretary of Energy (DOE) to develop and implement standards for a national energy and environmental building retrofit policy for commercial buildings; and (3) the program to implement such policies to be known as the Retrofit for Energy and Environmental Performance (REEP) program.

Requirements of the REEP program: (1) facilitate the retrofitting of existing buildings to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes; and (2) provide financial assistance to states, to be administered through the State Energy Program, for management and accomplishment of the program’s objectives at the individual building level. Authorizes states and local agencies to offer free or low-cost building audits, incentives, technical assistance, training, incentive financing, and other forms of assistance to individual building owners. Requires the Administrator and the Secretary to assist states and local agencies in establishing revolving loan funds or other forms of financial assistance.

The Caulkers Bill – or “Cash for Caulkers” has not passed the House.  We think this is good news… but the fight isn’t over yet.  Next it’s to the senate.

http://www.google.com/hostednews/ap/article/ALeqM5h4pIOjTWTl06XsauqI72MEvbYgqAD9FHJ4003

Insulation is Sexy – New Payment Incentives

When it comes to renewable energy and efficiency measures we have an abundance of Federal, State, and utility based incentives to assist us.   Here are some of the incentive options that are offered federally and in Montana….

FEDERAL LOAN PROGRAM

Energy Efficient Mortgage: Homeowners can take advantage of energy efficient mortgages (EEM) to finance a variety of energy efficiency measures, including renewable energy technologies, in a new or existing home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency improvements, and it secures lenders against loan default.

Eligible Efficiency Technologies: Yes; specific technologies not identified

Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Daylighting

Applicable Sectors: Residential

Web Site: http://www.resnet.us/ratings/mortgages

FEDERAL GRANTS

1. Tribal Energy Program Grant: The U.S. Department of Energy’s (DOE) Tribal Energy Program promotes tribal energy sufficiency, economic growth and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures.

Eligible Efficiency Technologies: Clothes Washers, Refrigerators, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Central Air conditioners, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Siding, Roofs, Comprehensive Measures/Whole Building, other energy efficiency improvements may be eligible

Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps

Applicable Sectors: Tribal Government

Amount: Varies by solicitation

Maximum Incentive: Varies by solicitation

Web Site: http://www.eere.energy.gov/tribalenergy

2. US Department of Treasury Renewable Energy Grant:

The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers eligible for the federal business energy investment tax credit (ITC) to take this credit or to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. The new law also allows taxpayers eligible for the renewable electricity production tax credit (PTC) to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. (It does not allow taxpayers eligible for the residential renewable energy tax credit to receive a grant instead of taking this credit.) Taxpayers may not use more than one of these incentives. Tax credits allowed under the ITC with respect to progress expenditures on eligible energy property will be recaptured if the project receives a grant. The grant is not included in the gross income of the taxpayer.

Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Solar Hybrid Lighting, Hydrokinetic, Anaerobic Digestion, Tidal Energy, Wave Energy, Ocean Thermal, Microturbines

Applicable Sectors: Commercial, Industrial, Agricultural

Amount: 30% of property that is part of a qualified facility, qualified fuel cell property, solar property, or qualified small wind property 10% of all other property

Maximum Incentive: $1,500 per 0.5 kW for qualified fuel cell property
$200 per kW for qualified microturbine property
50 MW for CHP property, with limitations for large systems

Web Site: http://www.treas.gov/recovery/1603.shtml

3. USDA – Rural Energy for America Program (REAP) Grant:

Eligible Efficiency Technologies: Yes; specific technologies not identified

Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Renewable Transportation Fuels, Geothermal Electric, Geothermal Heat Pumps, CHP/Cogeneration, Hydrogen, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Renewable Fuels, Fuel Cells using Renewable Fuels, Microturbines, Geothermal Direct-Use

Applicable Sectors: Commercial, Schools, Local Government, State Government, Tribal Government, Rural Electric Cooperative, Agricultural, Public Power Entities

Amount: Varies Maximum Incentive: 25% of project cost

Web Site: http://www.rurdev.usda.gov/rbs/busp/bprogs.htm

FEDERAL PERSONAL EXEMPTION

Residential Energy Conservation Subsidy Exclusion: (Personal) Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.

Eligible Efficiency Technologies: Yes; specific technologies not identified

Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics Applicable

Sectors: Residential, Multi-Family Residential Amount: 100% of subsidy

Web Site: http://www.irs.gov/publications/p525/index.html

FEDERAL PERSONAL TAX CREDIT

1. Residential Energy Efficiency Tax Credit:

Eligible Efficiency Technologies: Water Heaters, Furnaces , Boilers, Heat pumps, Central Air conditioners, Building Insulation, Windows, Doors, Roofs, Circulating fans used in a qualifying furnace

Eligible Renewable/Other Technologies: Biomass, Stoves that use qualified biomass fuel

Applicable Sectors: Residential Amount: 30%

Maximum Incentive: Aggregate amount of credit for all technologies placed in service in 2009 and 2010 combined is limited to $1,500

Equipment Requirements: Equipment must be new and in compliance with all applicable performance and safety standards as described in tax code Web Site: http://www.energystar.gov/taxcredits

2. Residential Renewable Energy Tax Credit:

Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service before 1/1/2009: $2,000
Solar-electric systems placed in service after 12/31/2008: no maximum
Solar water heaters placed in service before 1/1/2009: $2,000
Solar water heaters placed in service after 12/31/2008: no maximum
Wind turbines placed in service in 2008: $4,000
Wind turbines placed in service after 12/31/2008: no maximum
Geothermal heat pumps placed in service in 2008: $2,000
Geothermal heat pumps placed in service after 12/31/2008: no maximum
Fuel cells: $500 per 0.5 kW
Carryover Provisions: Excess credit may be carried forward to succeeding tax year
Eligible System Size: Fuel cells: 0.5 kW minimum
Equipment Requirements: Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state in which the system is installed. At least half the energy used to heat the dwelling’s water must be from solar. Geothermal heat pumps must meet federal Energy Star requirements. Fuel cells must have electricity-only generation efficiency greater than 30%.
Web Site: http://www.energystar.gov/taxcredits ,

IRS Form 5695 & Instructions: Residential Energy Credits

STATE TAX INCENTIVES

1. Energy Conservation Installation Credit: Individual taxpayers may claim a credit against their tax liability for up to 25% of the costs of investment for energy conservation purposes in a building.

Eligible Efficiency Technologies: Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Programmable Thermostats, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors

Applicable Sectors: Residential, Multi-Family Residential

Amount:25% of cost of capital investment

Maximum Incentive:$500

Web Site: http://mt.gov/revenue/energyconservationcredit.asp

2. Residential Alternative Energy System Tax Credit: Residential taxpayers who install an energy system using a recognized non-fossil form of energy on their home are eligible for a tax credit equal to the amount of the cost of the system and installation of the system, not to exceed $500 or $1,000 per household.

Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Low-Emission Wood Stoves, Small Hydroelectric, Fuel Cells using Renewable Fuels

Applicable Sectors: Residential

Amount:100%

Maximum Incentive:$500 per individual taxpayer; up to $1,000 per household Carryover Provisions:Excess credit may be carried forward four years

Eligible System Size: Hydroelectric systems not to have generation capacity greater than 1 MW

Equipment Requirements: Systems must be new and in compliance with all applicable performance and safety standards

Web Site: http://revenue.mt.gov/revenue/energyconservation.asp

3. Residential Geothermal Systems Credit: A resident individual taxpayer of Montana who installs a geothermal heating or cooling system in their principal dwelling can claim a tax credit based on the installation costs of the system, not to exceed $1,500.

Use Montana Department of Revenue Form ENRG-A to claim this tax credit.

PRODUCTION INCENTIVES

1. Northwest Solar Cooperative – Green Tag Purchase: The Northwest Solar Cooperative* (NWSC) offers to purchase the rights to the environmental attributes or “Green Tags” derived from grid-connected photovoltaic (PV) or wind energy at a rate ranging from $0.02 per kilowatt-hour (kWh) to $0.10/kWh. Residential and non-residential owners of PV and wind-energy systems installed after June 1, 2002, in Oregon, Washington, Idaho and Montana are eligible to participate in the Green Tag Purchase Program.

The contract term does not have a fixed duration. Interested participants sign an agreement with NWSC to sell their Green Tags, report any system failures and submit AC production meter readings each year. The NWSC agrees to make payments to participants by March 31 of the year following production of Green Tags.

*The NWSC is a not-for-profit service operated by Solar Oregon. It purchases Green Tags from many individual private sellers throughout the region, aggregates them, and sells them in one package to 3 Degrees Energy who, in turn, sells them to wholesale customers and consumers.

PROPERTY TAX INCENTIVE

1. Renewable Energy Systems Exemption: Montana’s property tax exemption for recognized non-fossil forms of energy generation or low emission wood or biomass combustion devices may be claimed for 10 years after installation of the property. The exemption is allowed for up to $20,000 in value for single-family residential dwellings and up to $100,000 in value for for multifamily residential dwellings or nonresidential structures. This property is class 4 property and otherwise would be taxed on 3.01% of assessed value.

Recognized forms of energy generation include solar photovoltaics, passive solar, wind, solid waste, decomposition of organic wastes, geothermal, small hydropower plants, low-emission wood or biomass combustion systems, and fuel cells that do not require hydrocarbon fuel.

Use Montana Department of Revenue Form AB-14 to claim this exemption.

2. Renewable Energy Production Incentive (REPI):

Established by the federal Energy Policy Act of 1992, the federal Renewable Energy Production Incentive (REPI) provides incentive payments for electricity generated and sold by new qualifying renewable energy facilities. Qualifying systems are eligible for annual incentive payments of 1.5¢ per kilowatt-hour in 1993 dollars (indexed for inflation) for the first 10-year period of their operation, subject to the availability of annual appropriations in each federal fiscal year of operation. REPI was designed to complement the federal renewable energy production tax credit (PTC), which is available only to businesses that pay federal corporate taxes.

Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Anaerobic Digestion, Tidal Energy, Wave Energy, Ocean Thermal
Applicable Sectors: Local Government, State Government, Tribal Government, Municipal Utility, Rural Electric Cooperative, Native Corporations
Amount: 2.1¢/kWh (subject to availability of annual appropriations in each federal fiscal year of operation)
Terms: 10 years
Web Site: http://apps1.eere.energy.gov/repi

STATE LOAN PROGRAM

Alternative Energy Revolving Loan Program: The Alternative Energy Revolving Loan Program (AERLP) provides loans to individuals, small businesses, local government agencies, units of the university system, and nonprofit organizations to install alternative energy systems that generate energy for their own use.

Eligible Efficiency Technologies: Building Insulation, Windows, Doors, Appliances, when installed as part of the alternative energy project

Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Heat Pumps, Small Hydroelectric, Fuel Cells using Renewable Fuels, Geothermal Direct-Use

Applicable Sectors: Commercial, Residential, Nonprofit, Schools, Local Government

Amount: Varies

Maximum Incentive: $40,000

Terms: Up to 10 years; 4.0% interest rate for 2010 Web Site: http://www.deq.mt.gov/Energy/Renewable/altenergyloan.mcpx

UTILITY BASED INCENTIVES

1. NorthWestern Energy – USB Renewable Energy Fund:

In 1997, Montana established the Universal System Benefits (USB) Program. The USB requires all electric and gas utilities to establish USB funds for low-income energy assistance, weatherization, energy efficiency activities, and development of renewable energy resources. A typical NorthWestern Energy residential customer pays approximately $1 per month in electric USB charges. About $9 million is collected annually by NorthWestern, and about $750,000 is used for renewable energy projects.

Eligible Renewable/Other Technologies: Photovoltaics, Wind, Hydroelectric Applicable Sectors: Commercial, Industrial, Residential

Amount: PV: $3.00/watt
Wind: $2/watt Maximum Incentive:PV: $6,000

Wind: $10,000 Web Site: http://www.northwesternenergy.com/display.aspx?Page=Renewable_Ene…

2. NorthWestern Energy – E+ Business Partners Program: The E+ Business Partners Program offers funding for local energy conservation and load management projects in new and retrofit applications including commercial, institutional, industrial, agricultural, and multi-family residential facilities/systems.

Eligible Efficiency Technologies: Retrofit and new construction applications

Applicable Sectors: Commercial, Industrial, Multi-Family Residential, Agricultural, Institutional

Amount: Varies

Web Site: http://www.northwesternenergy.com/display.aspx?Page=Business_Part…

3. NorthWestern Energy – Residential Energy Efficiency Rebate Program: NorthWestern Energy offers a variety of rebates for their residential customers to make energy efficiency improvements in their existing homes.

Eligible Efficiency Technologies: Equipment Insulation, Water Heaters, Lighting, Furnaces , Boilers, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Building Insulation, Comprehensive Measures/Whole Building, Cooking Equipment

Applicable Sectors: Residential

Amount:ENERGY STAR® CFLs: $2 per bulb
ENERGY STAR® hard-wired CFL fixtures: $15 per fixture
Programmable Thermostats: $30/unit
Gas Heating Equipment: Varies by technology and efficiency
Insulation: Varies by efficiency and location

Maximum Incentive:Lighting: maximum of fifteen CFLs and five lighting fixtures per calendar year
Programmable Thermostat: Two units per household

Funding Source: Funding for these rebates is provided through NorthWestern Energy’s natural gas and electric supply rates.

Web Site: http://www.northwesternenergy.com/display.aspx?Page=Rebates_Home_…

4. NorthWestern Energy – Commercial Energy Efficiency Rebate Program: NorthWestern Energy offers multiple rebate programs for their commercial and industrial customers to make energy efficient improvements to their businesses.

Eligible Efficiency Technologies: Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Furnaces , Boilers, Heat recovery, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Duct/Air sealing, Building Insulation, Windows, Motors, Motor-ASDs/VSDs, Commercial Cooking Equipment, Stack Heat Exchangers, Boiler Tune-Up, DHW Circulation Pump Time Clock Applicable Sectors: Commercial, Industrial, Irrigation Supply

Amount: Lighting: Varies based on bulb/fixture type ($1.00 to $40.00) or energy saved (10-50 cents per watt saved).
Motors: $13-$600 depending on HP and efficiency rating
Motor Rewind Program: $40-$500 depending on HP and RPM
Furnace/Boiler: $3.25 (KBtu/hr)
Water Heater: $2.50 (KBtu/hr)
Stack Heat Exchanger: $0.50 (KBtu/hr)
Griddle: $4.00 (KBtu/hr)
Fryer: $6.00 (KBtu/hr)
Refrigeration Heat Recovery: $1.00 (OA-CFM)
Boiler Tune-Up: $100
DHW Circulation Pump Time Clock: $100
EMS Optimization: $500
Water Heater Tank Insulation: $35
Other Insulation (equipment and building): varies $0.30 – $1.50 (per linear or square ft of insulation)
Windows: $3.50 (per square foot of window)
Energy Star Programmable Thermostat: $0.08 (per square ft of controlled area)

Maximum Incentive: Lighting: Rebates will not be provided for lamps or fixtures placed in stock in excess of 5% of installed equipment.

Equipment Requirements: Varies greatly by product, see application forms. Funding Source: Funding provided through NorthWestern Energy electric default supply rates for its default supply customers. Web Site: http://www.northwesternenergy.com/display.aspx?Page=Rebates_Busin…

_____

The Obama administration has called on Congress to pass a new incentive program for home energy efficiency upgrades called Home star. Created to help bolster the hard hit construction sector and national security by decreasing foreign energy dependence Home star will create tens of thousands of jobs and save home owners billions of dollars in long term energy reductions not to mention green house gases.  Rebates will be provided directly to the consumers and the federal government will reimburse accredited contractors and utilities for efficiency work performed. (SBS does this type of work.)

There are two tiers of the program: Gold star and Silver star.   Gold star is a two-year program that will provide between $3,000-$8,000 for 20%+ modeled savings for home owners.  Homeowners will need an audit by a RESNET HERS Rater or BPI Building Analyst Certified Professional to assess energy savings through improvements before work begins.  Work must be performed by a Gold star accredited contracting company.

Silver star is a one-year program which will qualify homeowners to receive between $1,000-$1,500 for each qualified efficiency measure, $250 per appliance, with a cap of $3000or 50% of project costs whichever is less. Qualified measures include: air sealing, attic, wall, and crawlspace insulation, duct sealing or replacement, replacement of existing windows, doors, furnaces, air conditioners, heat pumps, water heaters, and appliances with high-efficiency models.  When this bill passes through congress (expected in the next few months) there will be a huge demand for audit and efficiency retrofit work.

The Retrofit for Energy and Environmental Performance (REEP) Program Act has been submitted to the House Energy and Commerce and House Financial Services Subcommitees.  This bill Requires: (1) the Administrator of the Environmental Protection Agency (EPA) to develop and implement standards for a national energy and environmental building retrofit policy for single-family and multifamily residences; (2) the Secretary of Energy (DOE) to develop and implement standards for a national energy and environmental building retrofit policy for commercial buildings; and (3) the program to implement such policies to be known as the Retrofit for Energy and Environmental Performance (REEP) program.

Requirements of the REEP program: (1) facilitate the retrofitting of existing buildings to achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes; and (2) provide financial assistance to states, to be administered through the State Energy Program, for management and accomplishment of the program’s objectives at the individual building level. Authorizes states and local agencies to offer free or low-cost building audits, incentives, technical assistance, training, incentive financing, and other forms of assistance to individual building owners. Requires the Administrator and the Secretary to assist states and local agencies in establishing revolving loan funds or other forms of financial assistance.

Also, view President Obama’s presentation on Retrofitting for Energy Efficiency and New Jobs to get pumped about energy efficiency: Insulation is sexy!

President Obama\’s presentation on Retrofitting for Energy Efficiency and New Jobs

Contact SBS today to learn more about additional rebates, ratings and grants.  The offerings are constantly changing and we’re doing our best to stay on top of all the options.  Feel free to comment here with related incentives that would be important to share.