Tag Archives: financing

Financing your Solar Electric System

Embedded Energy - Solar Module ManufacturingFinancing your Solar Electric System

Have you been considering installing a solar electric system on your home or business?  Missoula Federal Credit Union now offers 4.5% interest rates on solar electric installations.

  • Really Easy to Use
  • Unsecured
  • Fast
  • No Prepayment Penalties
  • Apply online
  • Apply by phone at (406) 523-3300

Begin the process now and take advantage of the 2018 Federal Tax Credit and State Tax Credit. Planning now ensures future savings.

Loans

Missoula Federal Credit Union offers two loan options:  Solar Home Equity Loan or Unsecured Solar Loan

Federal Tax Credits
Residential 30% Renewable Energy Credit (thru 2019)This tax credit is applicable for all primary and secondary private homes.  It includes all associated costs, such as installation and electrical work.

State (Montana) Tax Credits
Montana State provides a 500.00 per tax payer tax credit, or 1000.00 per couple for your solar installation. 

Financing Solar – Missoula Federal Credit Union

Solar Panel Financing Missoula MontanaMissoula Federal Credit Union Offers Financing For Your Solar Electric System

Planning your solar electric system?  Thinking about financing? Missoula Federal Credit Union offers two loan options:  Solar Home Equity Loan or Home Energy Loan.

The Missoula Federal Credit Union is a
not-for-profit, member-owned financial institution, serving people who live, work, worship, or belong to
an association headquartered in Missoula, Lake, and Ravalli counties.  (Not a member?  No Problem. Becoming a member is easy, and is well integrated into the loan application process and can be done via mail, and need not include any financial services beyond the loan. Membership in the Montana Renewable Energy Association would qualify a
borrower for MFCU loans, making them available to the entire state.  Check out the Missoula Federal Credit Union Home Energy Loan Brochure.  Or Call (406) 523-3300.

Don’t forget:

Federal Tax Credits
Residential 30% Renewable Energy Credit (thru 2019)This tax credit is applicable for all primary and secondary private homes.  It includes all associated costs, such as installation and electrical work.

State (Montana) Tax Credits
Montana State provides a 500.00 per tax payer tax credit, or 1000.00 per couple for your solar installation. 

The State of the Solar Grant in Missoula, And Beyond…

There has been much talk about solar grants in our region this summer.  It’s no secret that solar sales were up by near triple in first quarter for most solar installers in the greater Missoula and Western Montana region, as seen in this article in April 2012 in the Missoula Independent.  And then the grants suddenly went dry in July of this year.  Another article in the Indy shares the details.

Here’s the gist:

  • Northwestern Energy gave out $3/watt up to 2000 watts (or 2kw) for grid-tied Solar PV installs in their territory.  This amounted to the $6000 grant folks would commonly ask for.
  • After the 2010 election, some state legislatures threatened to cut the state tax credits of $500/tax payer, $1000/couple, but it stood true.  And the 30% Federal tax credit remained strong.
  • In 2011, hard costs dropped nearly 40% for Solar PV, taking that $6k grant on a 2kW from a 30% coverage on an $18.5K system to a 50-60% coverage of install total on that same 2kW system, now costing under $11K.
  • By early 2012, solar energy was hitting an all time high in popularity on a national and global scale – everything from solar in China and India to solar on the White House, to solar farms in the southwest and solar financing companies popping up.

At this point at SBS Solar, like most local installers, we were selling our grants faster than we could get them.  At the same time, Northwestern Energy was having more requests than ever for solar grants, especially in the Missoula area, and they were maxing out their grant fund.  This, coupled with the drastic drop in pricing, brought things to a (temporary?) standstill in early summer of this year.

What we do know is that Northwestern Energy asked the MREA for a recommendation on how to proceed.  We at SBS Solar, and many of our fellow installers, weighed in with similar sentiments.  Cut the grants per watt in half to $1.50, but keep the maximum grant at $6000.  This would mean that a 2kW system now gets a $3000 grants ,and someone could get a $6000 grant for a 4kW system.   This would be awesome!  A triple-bottom-line here: Customers get a great grant and are now incented to go with a larger system instead of stopping at 2kW, Installers are now selling larger systems (and perhaps more often) and Northwestern Energy is getting double the renewable energy put back into their grind for half the cost, thereby getting them to their renewable energy mandate faster.

Win-Win-Win.

So…. here we with no grants, a state tax credit and a federal tax credit that could be in jeopardy depending on the outcome of the November election, and little action in the market.

Enter the SBS Solar Private Solar Rebate.  We are offering a rebate for solar customers that is competitive with the aforementioned MREA recommendation to Northwestern Energy.  Roughly $1.50/watt.  We also have two different solar financing options, one state sponsored and one private.

If you’re interested in solar today, don’t wait for an answer until November (at the earliest), when you can get our rebate today:  www.sbslink.com.  406-541-8410.  Ask for Dan.

Thoughts from our Intern: MT Renewable Energy Factoids

Our Energy Intern/Office Manager, Nick Bowman, recently gave this short talk for one of his classes at UM.  We thought it made for an interesting blog post which has some talking points about renewable energy you might not have heard or might find interesting or useful:

Montana, with its huge potential for renewable energy, could do more to use its resources to help strengthen the economy.

Montana is currently ranked 22nd in the nation for the amount of renewable energy produced, yet has enough available resources to become 3rd in the nation if properly developed and invested.

Montana potential for wind is due to its topography. High mountains combined with spacious plains are perfect for developing wind farms. Wind Energy alone has enough power to produce 370 times the amount of electricity used by the state. Here is a great potential for economic growth.

In places where buildings are a barrier, as they decrease the amount of wind which can be harvested, we could use solar power to create renewable energy gains.  We need to increase the monetary incentives for solar installation, particularly in light of the cancelation of energy grants by Northwestern Energy.

Montana is also one of 13 states which can produce energy from geothermal hot spots. The technology of geothermal is constantly improving and needs to be developed in order for this technology to be effective without compromising the environment.

Yet with all this in mind Montanas still spend 4.7 billion dollars to produce fossil fuels every year.

Increased implementation of green energy is only possible through the contribution of the average American who wants to better this great nation. Political activism, alternative energy advocacy and service are among the few ways which people can contribute to helping renewable energy succeed in this struggling economy. I would recommend that, if nothing else, each and every person reminds their representatives that they support sustainable energy.

Let’s make a difference.

Nick Bowman

Demistifying Solar Tax Incentives

I recently gave a talk for the Montana Sustainable Business Council on the incentives available for energy conservation.  I touched on federal and state tax credits, utility based grants and rebates and the state of Montana DEQ Revolving Loan Fund for renewable energy.

In the talk I mentioned that there has been some question as to whether the 30% federal tax credit for renewable energy installation (which is no cap and can be carried forward for multiple years), is to be taken on the gross cost of the system or the net cost (after applied utility grants) of the system.

Turns out it’s either — depending on your system, residential or commercial, according to Kenton D. Swift, PhD, CPA, Associate Professor of Accounting, The University of Montana, School of Business Administration.

He was in the audience at my talk and was kind enough to approach me afterward to further discuss this question.  After some research he got back to me via email with the following information:

I wanted to give you a little information about one part of your presentation. When a homeowner installs a solar pv system, and receives a utility rebate, they need to reduce the cost of the system by the utility rebate before calculating the 30% federal tax credit. For instance, if the system costs $13,000 and the utility rebate is $6,000, the credit would be 30% of $7,000 or $2,100. This is actually the way you calculated the credit in your presentation, but you hinted it might be possible to take the 30% credit on the full cost. This seems to be a common confusion.

There are actually two separate 30% federal income tax credits, one for personal residences (IRC Code Sec. 25D), and one for business (IRC Code Sec. 48). Generally, the credits are the same except for this one issue about netting utility rebates. The law requires that the rebate be netted against the cost before calculating the 30% credit when taking the residential credit (IRC Code Sec. 25D). I have attached a recent letter from the IRS chief counsel’s office which describes this netting process. Again, it is the same way you actually did your example at the meeting, which is great.

For the 30% federal BUSINESS credit (IRC Code Sec. 48) there is no specific requirement to net the utility rebate against the cost of the system, before calculating the credit. Actually, there does not seem to be any current law explaining what to do. Thus, I believe that when taking the business credit, most taxpayers take the credit on the full cost of the system, before utility rebates. This is a better result than one can get when calculating the residential credit.

I hope that helps to clarify a confusing issue, which you have handled very well.

Someone at the meeting also asked about the property tax exemption for solar pv systems in Montana. Kent went on to clarify that “such systems are exempted from property taxes for 10 years.”

At SBS Solar we go to the DSIRE database for all of this information and have even been referred to this site by the IRS when we called them about the above questions!  This is also the site that Kent relies on for much of his information, or confirmation of information.  He notes that he has “checked their information for many states, and it always seems to be up-to-date, when I compare their explanation to state law.”

Feel free to be in touch with SBS Solar on your energy conservation incentive questions, or to get a project started in Montana.

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.

SBS Summer Reading Heating Up: Solar? Conservation? Efficiency

While there certainly has been a lot of talk lately about the weather, and whether global warming is real or not, the concept of climate change is certainly on our minds (or should be).  It seems that catastrophic weather events are more prevalent than ever: from tornadoes to floods to tsunamis, earthquakes, mudslides and volcanic eruptions.

In response to these major weather events, and in an effort to gain some knowledge, I have been doing some summer reading.

First on the list is a behemoth of a book – and worth the hundreds of pages – Hot, Flat and Crowded by Thomas Friedman. Simply put: We are getting hotter as a globe from fossil fuel energy dependence.  We are getting flatter as a world through wireless technology.  We are getting more crowded as a world through population growth. This book points out, more than ever, the mounting global energy crisis with the advent of a larger-than-life working-class in major cities around the world,  namely China and India.  It also details some very viable ways we could remedy the current situation and prevent total global melt-down – like applying the idea of a smart grid to our utility use and billing, efficiency and renewable now (not later), government mandates and crackdown for laziness in getting on board, and even suggesting that the USA needs to getting into a race w/ China to “out green” one another – akin to the space race with former USSR that put a man on the moon in short order.

Another great read, and a bit shorter, is an  article in Rolling Stones:  “Al Gore: Climate of Denial: Can science and the truth withstand the merchants of poison?”  This article addresses the question of whether we are all in denial about climate change or not.  Former Vice-President Al Gore emphatically says “Yes, we are in denial.”  The final paragraph states:

The climate crisis, in reality, is a struggle for the soul of America. It is about whether or not we are still capable — given the ill health of our democracy and the current dominance of wealth over reason — of perceiving important and complex realities clearly enough to promote and protect the sustainable well-being of the many. What hangs in the balance is the future of civilization as we know it.

And finally, the shortest of all the reads, an article from Newsweek: “It’s still the Economy, Stupid. 14 Ways to put America back to Work” by 42nd President Bill Clinton. In June 2011 in Chicago, the Clinton Global Initiative (CGI) focused on America for the first time, inviting business and political leaders to make specific commitments in support of the former president’s jobs blueprint, which he details in this article. Here Clinton outlines his plans for economic stimulation.  Interestingly enough, the first half circled around energy efficiency and the funding there of.  Namely, #2 Cash for Startups, #3 Jobs Galore in Energy, #4 Copy the Empire State Building, #5 Get the Utilities in on the Action, #6 State-by-State Solutions, and #8 Paint ‘Em White.  And, really, all fourteen talk about energy conservation relating to economic stimulus in one way or another.

So sit back, try to relax and enjoy the reading.  (Then change out all your light bulbs to CFLs and LEDs, install a solar array and fix that leaky faucet.)

SBS Intalls Solar for Ravalli Co Habitat for Humanity

According to the Bitterroot Star, last week the the fifth home by Ravalli County Habitat for Humanity was completed and keys handed over to the owners. The new home is on Cherry Street in Hamilton and now belongs to Travis Sanderson and his family.

Much of the materials for the home were donating, including a Solar PV system – made possible through the work of Sustainable Building Systems (SBS) and Northwestern Energy’s Solar PV grant.  This system will reduce the family’s prior heating bill of $350/month in winter to around $80/month.

Read the entire coverage from the Bitterroot Star here.

Solar Prices drop up to 25%!

After a PV module industry wide cost reduction, sourcing a lower cost mount system and dealers giving better pricing on all balance of system components, SBS has new numbers for potential Solar PV customers in MT that represent up to a 25% reduction in installed costs for PV systems!

If you couple the new lower prices with a $6000 Northwestern Energy PV grant, the 30% Federal Tax credit for renewable energy and the $500/$1000 (single/couple) State Tax credit, the costs are lower than every before.

And here in Montana, we can add to that a 10-year, 4% financing option (oac) from the MT DEQ revolving loan fund for renewable energy.

For a 2kw, 9 module system, total cost to the customer is in the $12,000.00 range.

After incentives this is roughly 3,200.00 out of pocket.

This on average powers about 25-40% of the average Montana home.

Here is an example of plausible breakdown for that $12,000 system

$12,000 GROSS
– $1000 (deposit to SBS to begin work)
=$11,000 NET
-$6,000 (NWenergy PV grant)
=$5,000 – Financed w/ MT DEQ loan
120-months
4%
=$51/month

Yes, that is correct, for at little at $51/month for a 10-year period, you can cover up to 40% of your energy bill. Awesome.  Check out this PV for more information: SolarPVFinancing-Basics-final.

And, when you file your taxes at the end of the year on that system, you’ll still get the $1800 Federal credit and the $500/$1000 state credit back.  You can keep these to use however you’d like, or put that money into your DEQ loan for early pay off (there is not penalty for early pay).

For a free solar site assessment, or to learn more, contact us at SBS today: info@sbslink.com, www.sbslink.com, 406-541-8410.

To get a general estimate of your solar or other renewable energy needs, try our Solar Calculator here.

New SBS Solar PV Customer Profile

Customer Name, location, system size:
Keegan Eisenstadt, Rattlesnake Valley, Missoula, Montana, 3450 watt solar PV system

What turned you on to Solar?

My father was a solar energy engineer in the 70s-80s in New Mexico.  They have had water heating panels on their house since then.  Additionally, my own work at ClearSky Climate Solutions is related to changing the course of climate change – which is predominantly driven by human demands for energy.  The clear need for more distributed generation of power from renewable sources is the most important element to reducing the emissions of greenhouse gases, and leaving a more stable world to my children.  Solar is a great way for me to practice what I preach, and also get a great price on power for my house!

What brought you to SBS?

SBS is an innovative, Missoula company that is looking at a holistic approach to analyzing and reducing energy use (and greenhouse gas emissions) of planned and existing structures.  My company works to mitigate carbon footprints with its clients, and a linkage to SBS was a natural for us.  Once I started learning more about what SBS does, I realized that I needed them to install a system on my home.  The solar system install team at SBS proved to be smart, capable and thorough.  I also think they are genuinely as excited about my system as I am!!!  I know they log into my system’s internet monitoring pages to see how it is performing, not daily as I do (which is great fun!), but at least weekly.

Racking system in, panel get ready!

What were your goals for this system?

My goals for the system were threefold: 1) make my house a laboratory for how to mitigate climate change with distributed generation of renewable power (which is something I have thought about, talked about, and worked towards for years), 2) give me a better-than-market price on electricity – which it will certainly do, and 3) provide an educational/outreach opportunity for my community to see just how easy it is to make your own power!

The financial incentives available right now for installing domestic alternative energy systems are good: 30% federal tax credit, $500/tax payer state tax credit, NorthWestern Energy grants, and low interest loans available.  My system will be financially paid off in 10 years, using a 4% fixed loan from federal stimulus money.  The system payback, from the energy created will be between 8-12 years, depending upon how fast prices for energy rise, and the panels on my system have a 25 year warranty.  So, my house will make roughly 1/3 of it’s power for free from about year 10 until 25.  That’s a good power bill!

Josh setting the first panel. Check out the nice lines on those racks and micro-inverters.

What do you like best about your system?

Actually, I’m surprised by this answer.  I had no idea how much more aware of energy use in my house I would become.  I now see/feel the house using energy….literally with the real-time monitoring tools that are part of the installation.  I turn on the stove, microwave, the stereo and I can see the kilowatts used jump.  It is amazing……I know that the mot

or in my refrigerator uses about 95 kW, that a big light fixture in the living room is 225 kW, that the microwave and clothes dryer are huge energy HOGS.  Frankly, I wasn’t really aware of those things before.  I never really internalized the energy demand of things in my house that way.  Even being interested in these things, I hadn’t internalized them in a tangible way.  It is such a surprise, and I am really enjoying it.  I’m sure in time, I will be happier with the cost savings….but right now, I am learning a lot and feeling great about it!

We just finished installing a 3450 watt solar PV system in the Rattlesnake where we employed 16 Enphase micro inverters. Micro inverters offer several advantages over more conventional string inverters.

Micro-inverters, monitoring and mountains...

Each solar module power production is optimized individually so little module mismatching occurs.  As well, if one module is shaded from a nearby tree, this one module will have reduced output, not the entire series string of modules as with the larger string inverters.  This advantage alone makes a huge difference but the pluses don’t end here.

The Enphase engineers designed one of the coolest monitoring programs found in the PV world.  Each individual module reports its power output over the existing AC output wiring to your in home computer or with internet service, this data is directed to the company’s website where current and cumulative data is displayed and stored.

A good graphic says a thousand words so if you are interested check out this link to the Enphase monitoring examples.

For more information on Solar or to talk with Dan:

Dan Brandborg
NABCEP certified Solar installer dbrandbog@sbslink.com