What you need to know about Solar Tax Credits: Part 2

December 16th, 2012


Part 2: North Carolina State 35% Solar Tax Credit


Living in North Carolina is a great advantage for those interested in solar. Not only do you get to benefit from the Federal Solar Tax Credit that I discussed in Part 1 of this series, you also can take advantage of our state solar tax credit, one of the most generous and aggressive renewable energy programs in the country. In this part of the tax credit series, I will go over the basics of the tax credit for both residential and business use, and how you can best take advantage of this great (and limited!) opportunity. 

Combining federal and state tax incentives can save individuals nearly 80% off solar systems

I'll begin by going over the residential tax credit for solar (and other qualifying renewable) installations. It is available until January 1st, 2016, so you have some time to review the details if you need to.  You also receive an 80% abatement on the property tax value of the installation, so you shouldn't have to worry about a heavy increase in your property tax if you build on your home. There are some rules that must be followed in order to qualify for the residential renewable tax credit. The first, and probably the most obvious, is the solar array MUST be installed in North Carolina. The tax credit is spread out in 7% increments over 5 years. You can apply the tax credit towards personal income tax, gross premiums tax (this is a tax on insurance companies), or franchise taxes. Additionally, the tax credit may only be applied to 50% of your tax liability. In other words, if you have a tax bill of $10,000 at the end of the year, you may only apply up to $5,000 in credits against what you owe. Because of these rules, the numbers become tricky, and typically unless you make above a certain income level, the tax credit will do little to assist you in building a solar system. There are also some caps on how much you can receive in tax credits, based on the type of system you would install. They are as follows

– $1,400 for solar thermal or hot water heating, including swimming pools
– $3,500 for solar active space heating, combined active space and domestic hot water systems,
and passive space heating;
– $8,400 for geothermal heat pumps or equipment
– $10,500 for solar photovoltaics, wind, or other renewable-energy systems


Now that we've gone over a few of the rules, let's crunch some numbers in an example:

You decide to build a 5 kilowatt solar photovoltaic array on the roof of your home. The cost of the array is $25,000. Applying the 35% state tax credit would result in $8,750 (that's $25,000 x 0.35) in tax credits spread out over 5 years. For each year, you would receive $1,750 in tax credits. Now remember, this is a credit, and by law you can only apply it against 50% of your annual liability. So in order to take the full $1,750, you must owe at least $3,500 in state income tax to take the full amount of the credit. At the current rate of about 7% state income tax rate, you will need to make an income of at least $50,000 annually to take the full credit. Typically this minimum amount is not a problem, as most people who are willing to spend $25,000 on solar will make more than this annually. Still, it should be considered so you know exactly what is available to you.

Now the state credit is federally taxable, so Uncle Sam is going to look at your tax credit as income and will want its share of the money coming to you. This is an unfortunate ruling by the IRS, but it must be paid. The amount owed will be based on your tax rate. So if you are in the 25% federal income tax bracket, using the above example you will owe $437.50 each year you take the $1,750 tax credit to the federal government. By the time you've gone through 5 years of collecting that credit, your original $8,750 in state tax credits will really only be $6,562.50.

Wow. That was a lot of math. I apologize if there was any confusion over this, but once all of this information can be deciphered (most likely by an accountant), you can combine both the state and federal tax credits and see quite a large savings in your solar system purchase!

Apple Inc.'s large scale solar farm in Maiden, NC

For the corporate tax credit, many of the same restrictions apply to the general qualifications of building a solar array, but the cap on system installations is raised to $2.5 Million dollars. Because this value is so high, there has been a nice boom in large solar farms in the state over the past few years. Companies with large tax liabilities will typically build solar farms, connect to a utility grid in either Duke or Progress Energy territory, and sell the electricity back to the utility for a profit. Unfortunately, because these numbers are in the form of tax credits, you must be a very large and very profitable company within the state to be able to have this lucrative opportunity! This, in my opinion, was one of the major flaws in the state tax credit when it was enacted. It is heavily in favor towards large profitable companies, but quite restrictive in promoting growth in residential or small business solar installations.

DSIRE Renewable Database (www.dsireusa.org)

The Database of State Incentives for Renewables & Efficiency (DSIRE) was first developed in 1995 and is based in the North Carolina Solar Center. The site is a great tool if you wish to learn more about state and renewable federal incentives. Even if you are not located in North Carolina, DSIRE's database keeps up-to-date information on state incentives throughout the country. Please click on the link and check out what is currently being offered in your home state. In addition to government programs, there are several incentives, grants, and rebates offered by utilities and electric cooperatives that you may also qualify for.

This has probably been my most advanced discussion on solar since I started this blog in September.  I've really only covered the surface, and there is much more that can be written, but I also want to keep everything I write as simple and easy to understand as I possibly can, so I will end things on a good note and let you get back to your family for the holidays and enjoy time spent with loved ones. Have a Merry Christmas and a Sunny New Year!

What you need to know about Tax Credits Part 1

December 14th, 2012

The end of the year is almost upon us, and since everyone is talking about tax strategies and fiscal cliffs and federal programs, I feel it would be appropriate to discuss tax credits for solar and how you can use them to help install solar for your home or small business. I will warn you, there will be some numbers and a few details involved, so I will try to keep things plain and simple so that you will have a working knowledge of how you can take maximum advantage of the tax credits and programs available to you. I'm going to divide this up into 2 parts and publish separately so you may take in this information slowly and digest and if you have any questions, don't hesitate to ask!

Knowing all the solar tax credits available to you can save a LOT of money when it's time to file your tax returns

Part 1. The Federal 30% Investment Tax Credit.


The Federal Tax Credit was enacted by The Energy Policy Act of 2005, and provides a 30% tax credit to individuals and businesses installing approved solar systems. It was later amended to also include wind and other renewable energy systems. This tax credit is available until December 31st, 2016, or until congress decides to change the law. After the reelection of President Obama, it is probably unlikely that Washington will prematurely end the program, but who really knows, right? Nonetheless, while it is still available, if you are considering putting solar on your home, this is going to be your best friend.

A very good question I hear from a lot of home owners is "What parts of the system qualify for the tax credit?" It is actually quite a bit, and this comes as good news to everyone. The solar modules, wiring, racking, inverters, power point trackers, batteries, piping, and any other parts or materials needed to complete the installation and interconnect to the home counts towards the tax credit. So does the labor, development, on-site preparation, and any additional installer fees that might be included in the final bill. Things that wouldn't be included, for instance, if you decide to build a ground mounted solar array on a newly purchased piece of land. The purchase value of the land is not included into the tax credit equation. Or if you decide to lay a new roof on your home and then put down a solar array. The roof would not be counted towards the federal tax credit. Still, this is quite a relief to many homeowners knowing they are getting a tax credit for nearly all the cost of a new solar system.

You must remember, though, this is a tax CREDIT. You don't receive a check, the amount is not discounted from your installer's bill. You are still required to pay the full amount due for services. The credit is received on your tax returns the following year and you reduce the amount you owe to the IRS by the credit you received from the solar installation. Let's do an example.

You purchase a 5 kilowatt solar system on your home from your local solar installer. The final bill due is $20,000. With the Federal 30% tax credit, you will receive $6,000 in tax credits which can be applied to your tax returns. If you owe $8,000 in taxes, then you subtract $6,000 from $8,000, and now your tax bill will be reduced to $2,000. This is where you get your money back for the installation.

But what if your taxes are lower than the credit you received? Let's say in the previous example you only owed $3,000 in a single tax year. Unfortunately, you can only reduce your taxes to the maximum of what you owe. The government will not issue you a check for the remainder $3,000 credit. Wouldn't that be nice if they did? What you can do, though, is forward the remainder $3,000 in tax credits to the following tax year. So when it comes time to file for the following year, you may apply the remainder to what you owe against future taxes.

So, if you are anticipating recouping all of your tax credits in your first year, you must make sure you have the tax liability to do so! Otherwise you will be forced to take the credits incrementally until they are used up.


In the next part of this discussion I will go over the North Carolina State Tax credit and some online resources you can use to help find additional tax incentives in your home state.


Merry Christmas!

Regional Chemistry Conference Meets in Raleigh to Promote Sustainability

November 17th, 2012

The Downtown Raleigh Convention Center was host to the Regional ACS Meeting November 14th-17th.

The Annual Southeastern Regional Meeting of the American Chemical Society (SERMACS) was held at the Convention Center in downtown Raleigh on November 14th-17th (http://www.sermacs2012.org/). The theme of this years conference was "Catalyzing Sustainable Innovation" and promoted scientific research in the area of sustainable energy. This was particularly highlighted by the meeting of the Energy Frontier Research Council (EFRC) for the first two days of the conference, which held talks and poster presentations ranging from hydrogen-producing solar materials to promoting green education in schools and universities around the world. 

Professor Frank Osterloh, University of California-Davis, presenting on solar nanomatrials research in his laboratories.

The EFRC portion of the conference kicked off Wednesday with an opening talk from Chair and Professor Thomas Meyer from UNC-Chapel Hill, followed by 14 scientific research presentations from Professors and Industry Researchers hailing from all over the U.S. and as far away as Uppsala, Sweden. Several talks were themed around solar fuel nanomaterials, such as the presenation on nanostructured photocatalysts by Professor Frank Osterloh at the University of California-Davis. He and his fellow researchers have created metal oxide nanoparticles that convert water into hydrogen fuel using sunlight. Professor Osterloh and his colleagues hope that one day materials like these can be used commercially to power vehicles, businesses, and homes.

The Shark Project is an educational research kit that helps students research for new possible solar materials in high school science classes

 Professor Bruce Parkinson from the University of Wyoming introduced the Shark Project (http://www.thesharkproject.org/), which is a nonprofit educational research kit for high school science classes that helps students look for new solar materials. "This is real university research performed by high school students in a laboratory setting" Professor Parkinson mentioned during his talk. The kit itself is made of lego parts the students can build, then uses a common inkjet printer to print different oxides onto a sheet that can be analyzed for useful photochemical properties.

North Carolina State University graduate students Nacole King and Jonathan Boltersdorf presented their research on metal-oxide solar materials during the EFRC Conference Thursday.

The conference also included a poster presentation in which several undergraduate and graduate students were given an opportunity to share their important research with a public audience. Two graduate students in Professor Paul Maggard's lab at North Carolina State University in Raleigh, Nacole King and Jonathan Boltersdorf, presented their research on nanomaterial solar photocatalysts. The two researchers use a unique synthetic method called flux synthesis to prepare materials that give them enhanced solar properties and increase performance. Perhaps one day these advanced materials will be used commercially to power your home!


The EFRC and the Solar Energy Research Center is based at the University of North Carolina at Chapel Hill and was started to address the challenges of creating a sustainable energy future. You can visit their website at http://www.serc.unc.edu/index.html. The center operates on a 5 year $17.5 million Department of Energy budget along with other matching funds donated from UNC. The program is a collaborative venture that works closely with Duke, North Carolina Central University, North Carolina State University, and the University of Florida.

CED Cleantech Funding 2012

November 14th, 2012


The quarterly public open panel meeting of the Council for Entrepreneurial Development (CED) was held last Wednesday evening at the American Tobacco Underground Campus in Durham. The panel featured clean energy venture capitalist investors led by moderator Brad Ives, who is Vice President for Corporate Development at Semprius Solar. The panel included Michael Adams, Managing Director in Technology Ventures at Constellation – An Exelon Company, Grant Allen, Vice President of ABB Technology Ventures, and Neil Suslak, Managing Partner at Braemar Energy Ventures.

A Large Crowd of investors, entrepreneurs, and students gather before the CED Cleantech funding panel

The goal of the panel discussion was to speak about the current state of venture capitalism in the clean energy sector, recent projects they have been a significant part of in the funding process, and the short and long term future of the VC market in the energy industry. Questions from the audience were encouraged, and a large topic of discussion was how to bring more investments and VC into the Research Triangle area from the larger funds typically located in Silicon Valley. Panelist Grant Allen responded, saying the RTP is doing quite well, and encouraged businesses to continue bringing new innovations to market and keep working as they have been and this will lead to more growth in the sector and larger investments. The other panelists agreed.

The CED event was sponsored by Ernst & Young and Hutchison PLLC

The CED is a nonprofit organization based in Durham, NC. It's mission statement is to identify, enable and promote high-growth, high-impact companies and to accelerate the entrepreneurial culture of the Research Triangle and North Carolina. They are the largest entrepreneurial support organization in the Southeast, and the oldest in the country. There are currently over 5,500 active members in the organization, with 1,100 companies represented in North Carolina. You can check out their website at http://www.cednc.org/

Attendees met for a catered reception after the event

SolarBridge Technologies Visits The Triangle

November 13th, 2012


Solar Bridge Technologies Roadshow pulled into the Triangle last Tuesday to tout their latest ACPV modules and provide a product presentation, installation training, catered reception, and NABCEP credits. The event took place at the RTP Marriott in Durham and was sponsored by Ontility Training, Solar Bridge Technologies, and BenQ Solar. There were approximately 12 people in attendance ranging from solar installers, distributors, and those looking to expand their knowledge in the field.

SolarBridge Roadshow Hit The Triangle Last Week at Marriott RTP

The goal of the presentation was to provide an overview of the solar market and present their Alternating Current Photovoltaic (ACPV) modules that help reduce solar installation times. You can check out their website through the following link, http://solarbridgetech.com/ .  The beauty of the ACPV module is that the microinverter comes pre-installed on every solar panel out of the box, so installation is simple and easy. Easy quick-connects allow for fast connection of panels in parallel rather than series, keeping total voltages lower and safer to use.

The pre-installed SolarBridge microinverter on the underside of a solar module.

The presentation emphasized four key points to their advantage of using SolarBridge ACPV modules:

• Simple Design, pre-installed microinverter technology that reduce installation times by 50%. See for yourself in the SolarBridge video presentation below.
• Reduced Costs of installation crew time, cables, and materials required.
• 25-year warranty for every microinverter. This warranty matches most panel manufacturer warranties, which is very important in reducing O&M costs after installations.
• 25% higher production output compared to traditional DC systems.

 

 Solar Bridge Installation Comparison

Another key advantage to the SolarBridge ACPV technology is its scalability. Because each module is pre-equipped with its own microinveter that will control and optimize AC output, more panels can be added to an array over time as needed without going through a complete system rewiring. This is not the case with traditional DC systems that utilize a single inverter and are limited by string sizing requirements. You are also not hindered by shading faults that in traditional DC systems can reduce output by over 50% even if a single panel is partially shaded. So common soiling issues do not become a major burden on your system.

SolarBridge ACPV Solutions Presentation

With all the advantages that I believe give SolarBridge technologies a distinct edge in the microinverter market, I believe their most valuable asset is the 25 year warranty that comes with each microinverter. To provide customers with this long term warranty that pairs quite well with solar module manufacturer warranties is an assurance that the company truly believes in their product. Additionally, this provides reduced O&M costs to the buyer compared to traditional DC systems in which most string inverters need to be replaced once or twice during the lifetime of the system. This will reflect well with installers and distributors as Solar Bridge continues to partner with more panel manufacturers to provide tandem product lines down the road (Currently they are partnered with BenQ Solar, SunPower Solar, Nexus Energy Solutions, ET Solar, Talesun, Mage, and EOPLLY).  Continued partnerships with more solar manufacturers will increase availability and should lower overall costs to make them more price competitive with traditional DC systems.

Installation Training of ACPV Modules post-presentation

After the presentation, attendees participated in an on-site panel installation training to show the ease of setting down ACPV modules. A catered reception was held with refreshments and snacks provided by BenQ Solar. The sponsors also held a raffle to give away free prizes and gift certificates. Thanks again to Greg and the Solar Bridge Crew, the Ontility Training partners, and the BenQ Solar sponsors. Good Luck with the rest of your tour!

Sponsor BenQ Solar Provided Refreshments after the Presentation

Solar For Home Basics: What You Need to Know

November 12th, 2012

Key factors to consider before you switch to Solar

Home Solar: How to decide if going green is right for you.

Every homeowner would be delighted to see their electric bill go away. And for many, solar comes to their minds as a possible answer to this dream. But how can you know if solar is right for you and your home? There are several factors that you should consider that go far beyond just wanting to lower your monthly bill. Let's go over some of them and hopefully help you make an easier choice for your energy plan.

#1. My Electric Bill is Too High!

 

A high electric bill definitely can make switching to solar tempting, but you'll need to probe deeper than just the numbers. Why is it so high? Are you using inefficient appliances and light bulbs? Leaving things on when you are not home? Believe it or not, the best homes for solar will also be the most efficient homes. Look around and see what kind of light bulbs you are using. You can reduce your monthly electric bills simply by replacing old incandescent bulbs with more efficient compact fluorescents or LED's.  A 100W solar panel on your roof couldn't provide enough energy to light two 60-watt bulbs, but could power ten 8-watt LED bulbs with ease. And when you think about how long you are using your home lights, this can add up quite quickly. Since energy is calculated as watts multiplied by hours used, a 60 Watt light bulb lit for one hour uses 60 Watt-hours. With an 8-Watt LED, you could light your room just as bright for over 7 hours before you use the same amount of electricity! When you consider how many light bulbs you have in your house, the savings really add up!  All of a sudden, you've reduced the number of solar panels you need on your roof by simply switching out your light bulbs.  Now check your large appliances like your refrigerator, oven, microwave, HVAC unit, hot water heater, and washer & dryer. Are they energy star certified? How much electricity are they using? Minimizing your load will help you maximize your benefits from solar. 

#2. I have plenty of roof space for panels!

Yes, roof space is definitely a factor, but it doesn't just stop there. Some roofs work better for solar than others, and obstacles like chimneys, vents, lightning rods, pitched windows, and others can cause obstructions that limit your maximum electricity output. And most importantly, the DIRECTION your roof is facing matters. A south facing roof will be your best position for laying solar panels down, while a north facing roof is the absolute worst. So if you have a north/south facing home, don't quickly assume you can just place panels on both sides of the roof! And if you have a home owners association, you will need to check with them if there are any rules or regulations in regards to solar. There are laws that will allow you to place solar even if an HOA says otherwise, but they may have a say-so on which side the panels can be placed, like facing the back yard versus facing the street. And if that happens to be the case and the back side of your roof is north-facing, You may be better off saving your money.

Nearby Trees can be problematic when installing solar panels on your home

#3. Those trees in my yard shouldn't be a problem

Wow. I've heard this a bunch. The real sentence should say "Those trees in my yard shouldn't be a problem, NOW"  Remember, any foliage in your yard is going to grow over time, and since solar is a LONG term investment, you need to consider the long term growth potential of any trees or bushes in your yard. Will they become a problem down the road? Are you ok with cutting them down to make sure your panels get the maximum amount of sun during the day? Are the trees even on your property? Is your neighbor ok with cutting them down? Even with experienced solar installers, this is a common oversight. So keep this in mind and have a good feel for your entire property and the trees surrounding it.

#4. With all the current credits and incentives, solar panels are super cheap!

Yes, but here's a couple things you'll need to understand. The federal and state incentives are in the form of tax CREDITS. Therefore, you will need to have the proper tax liability to retain the credits, otherwise you may end up paying a lot more than you originally had planned. And since they are tax credits and something you will receive in the future, you will still need to pay full price for your solar array upon installation. Some of the tax credits will take up to 5 years to fully recoup, so plan accordingly with your finances. 

These are just a few of the basic questions you should ask yourself before installing a solar array on your home. There are many more considerations, especially when it comes to your utility grid, interconnections, and financial modeling considerations that are a bit more advanced.  I will cover them in another article soon. Lastly, I want to give you one more piece of advice. Solar is a long term investment. If you are unsure where you might be in a few years, then wait before springing for some panels. It can take several years to recoup all your investment back, so knowing where you will be in the next 5-10 years or even longer will be your greatest factor in knowing if solar is right for you. 

Thanks for reading and have a Sunny Day!

The Solar Vote 2012

November 5th, 2012

We all know the importance of exercising your right to vote this Tuesday, November 6th, and I would like to take some time to discuss the impact on solar your vote could make for the next 4 years. A glance at half the country and you see angry voters arguing failed subsidies and chanting 'Solyndra' like it's a dirty word, and the other half demanding clean energy and elimination of funding to oil and coal. Most of the country's voters have already made up their minds, but if you are still making some last minute considerations, or simply want to enjoy reading entertaining chit-chat on the future of solar in our country, then today is your lucky day.

The Overall Energy Plan: Mitt Romney

Mitt Romney and the GOP party has committed to achieving North American energy independence by 2020, which includes reducing oil imports abroad and expanding domestic energy sources including coal, oil, natural gas, and renewables. Read more specific details at http://www.mittromney.com/issues/energy.

Romney-Ryan 2012 promises to expand domestic fossil fuel drilling while reducing subsidies like the Federal ITC for new renewable energy expansion.

This "All-in" approach that Romney is pushing is not necessarily a bad one for the American economy. It has the potential to significantly lower energy costs and allow homes and businesses to focus more of their money towards other ventures, with the Republicans touting particularly that new jobs will be created from this plan. Currently, the majority of the nation's electricity is derived from coal power, and Mitt Romney certainly plans to expand and explore more clean coal mining to lower energy costs and bring jobs to coal mining towns.

The drawbacks, though, leave many questioning how exactly are Mitt and his GOP colleagues going to create these new jobs and what will be the future of the solar industry and their nearly 120,000 (and rapidly growing) jobs that come with it? There is enough of an argument on the validity of 'clean coal' and that it cannot be considered a clean energy technology since there is still production of greenhouse gases through burning and gasification. Additionally, the solar industry has come under fire from the republican party, citing misuse of government spending to support defunct green companies like Solyndra and, more recently, A123 Systems, which have taken millions in government loans and then declared bankruptcy over weak sales and rising price competition from mostly Chinese based solar energy companies.

Federally backed companies like Solyndra have come under fire since going bankrupt due to poor sales and cheaper competition from Chinese solar companies.

Overall, Mitt's plan for America if he is elected includes the following points;

• More than three million new jobs, including over one million in manufacturing;
• An economic resurgence adding more than $500 billion to GDP;
• A stronger dollar and a reduced trade deficit;
• More than $1 trillion in revenue for federal, state, and local governments;
• Lower energy prices for job creators and middle-class families; and
• National security strengthened by freedom from dependence on foreign energy supplies.

But, unfortunately, his plan does not including any specific promises for expanding or extending any federal incentives for solar. Most likely, they will shift in the opposite direction, and possibly disappear if the congress has an opportunity to remove or change programs like the federal 30% Investment Tax Credit, or the recently expired 1603 federal grant program.  Under the Romney plan, solar surely will have a cloudy future.

The Overall Energy Plan: Barack Obama


The following video clip shows the current administration's plan for energy policy over the next 4 years if Obama were to be reelected. Take a look,

The Obama energy policy has a somewhat similar approach as the Romney plan, and adopts the phrase "All of the above" strategy, suggesting achieving energy independence by supporting domestic energy production, as well as aiming to reduce our carbon footprint and lowering air pollution. The current administration has pledged to increase fuel emission standards, create renewable energy portfolio standards, and support green energy jobs to make us more energy independent. Over the past 4 years, we have seen solar and wind energy production in America more than double, and he has pledged a continued plan for 80% clean energy production by 2035. You can see more of his specific points here http://www.whitehouse.gov/energy.

President Obama has called for a standard of 80% of energy production to be from clean energy sources by 2035

As for the current incentives for solar and renewables in America, President Obama has pledged to continue to support these plans and the creation of 225,000 new green energy jobs if he is reelected. Through investing in clean energy companies domestically, we can reduce our need on foreign energy sources and create new jobs. The democrats would also fight to cut subsidies for big oil companies, which according to former President Bill Clinton at SPI Orlando in September of this year, received (along with coal, nuclear, and natural gas) $22 of federal support for every federal dollar spent on renewable energy. Certainly with this size of funding disparity one can see why solar has had such an uphill battle to climb in this country.

If one were looking just at solar energy, it is clear that Obama has pledged the greatest benefits and incentives to the industry. But it is not just this one issue that should be your final decision on who to vote for on Tuesday. It is important to look at each candidate's entire plan on several issues that are important to you so that you may make an educated voting decision. To take a closer look, visit the following websites to see all the issues yourself, and head to the polls on Tuesday. Best of luck to you!

Mitt Romney's Website: http://www.mittromney.com/

President Obama's Website: http://www.barackobama.com/

Enjoy!

Renewable Energy Education at NC State

October 31st, 2012

Happy Halloween everyone! Before we all dress up in our favorite costumes and enjoy a cool night of trick-or-treating in the triangle, I wanted to give a shoutout to the NC Solar Center at North Carolina State University. If you live in or near North Carolina and want to expand your knowledge on renewable energy, gain training and certification for solar and wind, or simply want to learn more about something good for the planet, check out their website, http://ncsc.ncsu.edu/

The NC Solar Center House on campus of North Carolina State University

The aim of the NC Solar Center is to advance clean energy for a sustainable economy, and they do this primarily through education and training of students and professionals in the industry or have a desire to enter the solar world. I've been familiar with the solar center since 2005 when I began my graduate studies at NC State, but it wasn't until this year that I became more involved and registered for their Solar PV training class, taught by David Del Vecchio from Stata Solar in Chapel Hill. It was an intense 5 day course that was both extremely educational and enjoyable. I couldn't believe how much I had learned in such a short period of time. It discusses not only the overall solar landscape in North Carolina, but dives well into the makeup of a solar array including panels and panel types, racking, max point trackers, inverters, batteries, evaluating solar availability, using PV Watts, string sizing, wiring, safety, and much more. At the end of the week we were all given the option to take the NABCEP PV certification exam, which I did and passed relatively easily with 100% credit given to the strong teaching skills of Mr. Del Vecchio. On the last day of class, we were all escorted to the NC Solar center's outdoor training facility for a tour of the grounds and a hands-on learning experience on how to properly install an array on a pitched roof. Everyone was given the opportunity to drill, mount, connect, and place the solar array into service. Given that the day was reasonably nice out, we were fortunate enough to see some electricity flowing from the inverter! If you are looking for a short, intense, and fun course on PV education and training, I highly recommend this course. Their is also an online course offered as well for distance education starting November 6th, check it out at http://ncsc.ncsu.edu/index.php/education-training/workshops-special-events/

The NC Solar Center Provides On-Site Training for installation of Solar Arrays for students and professional

I was very impressed with what I learned in the PV classes and wanted to further my education in the field, so I registered for the solar heating class and the CREM course, Certificate in Renewable Energy Management. If you complete 3 classes from the NC Solar Center, you receive a Renewable Energy Technology Series Diploma, a great accomplishment for your work and also an advantageous degree to list on your resume if you are seeking a job in the industry. The solar heating class was quite the undertaking. Again, it was an intense 5 day course with on-site installation training and a NABCEP certification exam, but the amount of material was simply overwhelming. There was SO much to know about the subject! I tackled the books and absorbed as much as my sponge-brain could soak up. I came out of the class feeling like a champ. Bill Guiney, our instructor, is a director at Johnson Controls group and an expert in Solar Water heating and cooling. With over 30 years of experience in this field, he may be one of the world's foremost authorities on the subject. It was a pleasure learning from him and there wasn't a single question he couldn't answer effectively.

The CREM class was my final course in my renewable series diploma and possibly was my favorite class. It was a perfectly balanced mix of renewable education, business class, and group-style working projects that I believe every student gained immensely from. There are 36 hours live and online classes spread over a 6 week course and includes quizzes, seminars, and finishes with a group project presented to the class and to local professionals. I felt like this class truly was the 'nugget' of information I'd been looking for, and I can't recommend it highly enough. The instructor, Lyra Rakusin, along with guest instructors from around the Solar Industry, provided insight into all aspects of renewable energy from the basics of PV to financial modeling, tax credits, partnership finance structures, legal procedures, sales, marketing, and performance contracting.

Finally, I want to thank everyone at the NC Solar Center for their work and dedication to renewable energy. I and my classmates worked very hard and learned a great deal and immensely enjoyed it. If you are interested in learning more about solar and renewable technology, visit the NC Solar center to find the right program for you!

Happy Halloween!

My classmates and I at the final day of the CREM course offered by the NC Solar Center

Is this the end of the 'Tax Credit' Era?

Oct. 27th, 2012

New large scale solar farms like the one shown above may see a drop in production if the solar tax credit is repealed

While the candidates petition for your vote in the elections over the next 10 days, there is a huge buzz in the North Carolina solar industry on the future of the eligible 35% state tax credit, while even bigger worries over the federal 30% Investment Tax Credit creates a worry that the 'golden era' of the tax credits may be in jeopardy. Lawmakers have focused heavily on cutting spending to help balance the budget, and with repeated failed solar businesses making headlines, it makes for an easy target in a cutthroat battle of congress.

So what will happen if the tax credits just disappear? A good answer might be to take a look at wind. The federal production tax credit for wind production has just over 2 months left of life before it expires. And since wind projects need to be placed in service before the incentive expires to receive the tax credit, there is very little activity going on in new wind power construction. Is the industry dead? No. Of course not. But this is a huge blow for sure. Expect to see a similar slowdown in new solar if the tax credit is repealed early, which is a nice way of saying solar will pretty much fall off the face of the map in the US.

With the wind energy tax credit expiring this year, new wind production has seen a sharp decline.

Another way of seeing what might happen is to look at Spain. Generous government policy and feed-in tariffs for solar production were enacted in 2004 and the country saw a major boom in the solar industry. But in 2008 when the financial crisis struck Europe, the Spanish government made sweeping cuts to federal subsidies, including solar, which took a huge hit. Spain went from being one of the worlds largest solar producers to miniscule within just a few years. It just goes to show you how closely tied energy is to government policy in the world.

But the answer for the investor is simple. With the tax credits and other subsidies, solar power is a good long term investment. But without those added incentives to sweeten the deal, it's not. Those who are coming into the market because it makes good financial sense will take their money elsewhere, and the industry will be left to fight for the remaining scraps of business it can find. Soon the solar installers, workers, electricians, plumbers, and manufacturers will leave the field as well. The 15,000+ new solar jobs and $3.7 billion in revenue created in North Carolina alone will be in jeopardy.

Whether or not the tax credit is repealed in 2013, we must look at how it has changed the solar industry since it was set in place. For one, cost has come down significantly. Even without the tax credit, solar power is more affordable today than it was prior to its implementation. It has created thousands of jobs in North Carolina, and hundreds of thousands of jobs across the U.S.  The carbon offset has been tremendous, and energy costs have been lowered significantly because of it, which in turn is passed onto the consumer.

While I personally never thought a permanent tax credit for solar energy was the solution, I do
believe that the repeal should be gradual, and if at all possible, restructured to better suit individual investors and residential families. The cost of installing a solar array on a residential home is still quite high, and the opportunity for a family to take advantage of the tax credits offered is low. For one, not many families make the necessary income to take advantage of the tax credit, which is capped at $10,500. The corporate tax credit is capped at $2.5 million, allowing for much larger solar installations. But even then, you will be hard pressed to find many North Carolina companies with such a large appetite. Hence we see the several financial modeling tricks such as flip partnerships and sale leasebacks that can make the accounting quite messy. Perhaps a better approach would be to allow for a grant in lieu of tax credits, similar to the Federal 1603 grant that expired last year. Allow better net metering standards for residential customers to make it easy to connect to the grid and offset their utility bills. Enable third party electricity sales and offer solar leasing to residential homes that would remove the burden of a large financial investment of a solar array.

No matter what happens after the elections in November, it is important to not forget why we are all here in the first place. We see a need for a change and a desire to remove ourselves from dependence on fossil fuels, foreign oil, and to create a better environment and atmosphere for ourselves and future generations. We are likely not going to run out of oil and gas in the next few years, not even in the next 20 years, but we will eventually have to make a choice to either continue to rely on a diminishing power supply coupled with increasing costs, or make a move to a long term viable, safe alternative. One day we will have to change our ways. And the sooner we can become a part of it, the sooner we can all benefit from it. 

SPI Orlando 2012!

What an amazing event! It was a great 4 days, and I was so overwhelmed with the conference upon my return it took me over a week just to get everything organized to chat about it! ha!

Let's start with the opening night and ceremony. You could really feel the anticipation as the expo hall was being prepared for the next 3 days of activity with over 16,000 attendees.

Workers getting ready for the opening of SPI Orlando 2012!

I attended the opening conference with Julia Hamm and Rhone Resche, two of the solar industry's most well known and outspoken solar advocates, and they gave a great overview of the solar industry and where it stands today. With so many opportunities in our field, thousands of new jobs have been created all over the U.S. and many thousands more continue to jump in as we grow at an accelerated pace. Even with a looming economic recession, the industry has thrived and expanded as new state and federal tax incentives bring the overall cost of solar down and into competing territory with rising gas and electricity prices.

In the evenings, a slew of networking events and receptions are held by various companies to get a chance to meet the people and workers in the industry and to make connections around the industry. I had the luck to be invited to a few myself thanks to my pal Julia Sullivan, and was able to meet and chat with hundreds of people in a more casual atmosphere.

The first full day of the conference starts off early with several smaller conferences separated by financing, marketing, and policy. Many are conducted with a panel of guest speakers such as the open forum on creative and cutting edge financing that I attended, below.

George Ashton of Sol Systems speaking at the Creative and Cutting Edge Financing Session

And then there's the Expo Hall. This is where the magic happens! Hundreds of booths from manufacturers to installers, financiers, racking systems, inverters, solar hot water, tax advice, lawyers, state programs and more. Definitely this is the reason why thousands of people come to this event every year

Several of the booths in the expo hall of the SPI conference. Many established and well known names such as Sharp solar had some of the larger displays as well as new companies and creative ideas for integration into the smart grid

Then came the Hard Rock Live event with Blue Man Group on Tuesday evening. Hard Rock Orlando is at Universal Studios, so you can imagine the kind of crowd and events you are going to see there. At some point I got to meet both the beatles and KISS, on stilts, lol.

Panoramic view of Universal Studios Florida and Hard Rock Live!

The Blue Man Group performed as well, and it was my first time seeing them in concert. What a great show! Perfect mix of comedy, music, theater, and magic show, all wrapped up into one fun interactive evening! Also, it should be known I totally lost my camera for a couple hours that night, but thanks to some very nice SPI conference attendees and the wait staff at Hard Rock, it was waiting safely for me at the lost and found. Phew!

Blue Man Group at Hard Rock Live, Universal Studios, SPI Orlando

And finally, the main event of the conference, Bill Clinton, spoke live to a packed audience (they had to shuttle several late attendees into overflow rooms!) at the Key Note session on Wednesday afternoon. To be safe and get a seat, I hopped in an already long line an hour early, but I made it in ok! I thought Former President Clinton did an excellent job, and not only praised us for our growth and hard work, but encouraged the industry to push further to become an every day household discussion. It was up to us to keep the industry afloat beyond the expiration of any tax incentives. I left feeling like I had a responsibility to help drive the solar industry. To assist those in need in poverty and poor nations, and to fight to make solar power as mainstream and common as oil, natural gas, and coal.  I truly hope that I and others in our field can make a difference and bring clean, renewable energy to people in need around the globe.

Former President Bill Clinton Speaking at the Keynote Address at SPI, Orlando 2012

And lastly, I want to thank everyone I met at SPI, I had a wonderful time and it was a great, fun, educational experience and I hope to see all of you again (and meet many, many more) next year at SPI Chicago 2013! Take Care!

Rising Phoenix Solar at SPI!

Phew! My little creation is coming to fruition, finally! And what a great way to celebrate the launch of Rising Phoenix with a trip to the Solar Power International Conference in Orlando! My bags are packed and tickets bought, I'm ready for some great networking, seeing the latest technology, and getting in a little sun! This is my first trip to SPI and I have to admit, I'm excited!

Rising Phoenix was created with a mission to promote and expand solar energy in North Carolina through solar leasing and financing, but we also believe in a bigger purpose to give back to the community, and to bring solar electricity and hot water to those in need. A portion of our profits will be used to provide solar power and solar hot water to missions and nonprofit organizations in developing countries. Through Rising Phoenix Solar, we offer reduced energy savings, reduced carbon footprint, and support to communities in need.

So here's to a week of fun, information, and friends. Hope to see many of you in Florida, and the rest of you when I return!