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Financing
Achieve has access to a variety of financing options for our renewable energy solutions.
Programs and rates vary substantially based on which product(s) are being financed, the size
of the project and the location. We encourage you to discuss financing alternatives with us.
INCENTIVE SUMMARY FOR SOLAR HOT WATER APPLICATIONS
There are strong incentives for installation of solar hot water systems. The incentives can be different for commercial and residential projects and vary from state to state. Achieve tracks these programs and will help you understand how rebates can make your solar installation more economical.
State or Utility Rebates
Many states offer rebate programs, tax credits, and/or tax exemptions for installation of
solar hot water systems. The amount of the rebates vary but can be up to about half the cost of installation.
States may also offer solar hot water financing programs whereby qualifying homeowners may receive low or no
interest financing or ‘energy efficient mortgages’ for installation of solar hot water systems.
Federal Investment Tax Credit
The Internal Revenue Code provides an investment tax credit (ITC) for certain
types of energy projects, including solar projects that “provide hot water for use in a structure”.
Historically, through 2005, the size of the solar credit was equal to 10% of the project’s
“tax credit basis” – i.e., the portion of system costs to which the ITC applies.
The Energy Policy Act of 2005 temporarily increased the solar credit to 30% of a project’s tax credit basis,
for projects placed in service between January 1, 2006 and January 1, 2008. In late-December 2006,
the Tax Relief and Healthcare Act of 2006 extended the in-service deadline to December 31, 2008, and
in October 2008, the Energy Improvement and Extension Act of 2008 extended it once again for a full eight years,
through December 31, 2016.
Accelerated Tax Depreciation
The IRS provides a Modified Accelerated Cost Recovery System through which certain investments in
solar projects can be recovered through accelerated income tax deductions for depreciation. Accelerated
depreciation applies to business tax returns.
Impact on the Environment and Financial Benefits
After installation solar hot water systems have virtually no negative impact on the environment.
Solar thermal hot water systems produce no air pollution, hazardous waste, or noise and significantly
reduce fossil fuel consumption for water heating applications.
- Domestic hot water typically accounts for approximately 20 to 30% of the average home’s energy bills.
- A solar hot water system can offset 50% to 75% of domestic hot water needs and associated energy costs.
- A solar radiant heating system can offset up to 50% of home heating needs and associated energy costs.
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