What Solar Can Do for Your Pocketbook

• Lock in your electricity rates for 30 years – HECO/MECO and other utility companies’ rates have been steadily increasing by about 6.7% a year.
• The pre-tax IRR over 25 years in most cases averages around 10-15% — far better and far safer than the stock market, bond market, money markets, and long-term CDs.
• Increase your home’s value by $20 for every $1 reduction in annual utility bills, according to the National Appraisal Institute. And, your property tax won’t increase even one cent.
• Since you only pay us the After-Rebate Price, you experience the savings right away without having to wait for your state rebate to process!

The average homeowner will spend more than $100,000 on electric bills over 25 years. Why rent when you can own? Following is an overview of the costs associated with purchasing a solar system. The upfront installation costs are far cheaper in the long run than paying increasing electrical rates, and the value of your home increases more than the cost of the system with no additional property tax assessments. Here’s how it works:

The net cost of your solar system will be determined by 3 variables:

• Solar System Size (kilowatts)
• State Rebates
• 30% Federal Tax Credit

The following examples reflect the cost of solarizing an average California home, which for us is about a 5 kilowatt DC solar system. Depending on your electricity usage, this can either offset 100% of your bill or a majority of the most expensive electrical rate tiers.

State and Federal Solar Incentives

State and federal benefits can reduce the cost of your solar electrical system by 50%!

Federal Tax Credits

In the fall of 2008, the federal tax credit for solar increased dramatically. You can now receive a federal tax credit of 30% of net system cost after state rebates are deducted (applies for both residential and commercial solar installations). This credit comes directly off the amount of income tax you owe. For businesses, the tax credit can be carried forward 15 years or back 3 tax years, and we often see paybacks in as low as 5 years and pre-tax internal rates of return in excess of 25%. The “MACRS” five-year accelerated depreciation schedule is also applicable.

Hawaii’s Rebates and Incentives for Solar Energy Systems

Hawaii: a tropical paradise and one of the most visited states in the Union. Also a popular retirement area, the state has a fairly good program to promote solar progression for residents.

Rebates

• HECO, MECO, HELCO-Energy Solutions Solar Water Heater Rebate. This program is offered by the three major utility companies on the islands. There is a $1000 rebate available to homeowners, $125 per kW for commercial applications, plus $.0.05kW for new construction. Customers may also qualify for the 35% Hawaii State Energy Tax Credit and the 30% federal tax credit for solar water heaters.
• KIUC – Solar Water Heating Rebate Program is another utility rebate program for both residential and commercial purposes. Residents can qualify for up to $800, while commercial installations can qualify for 50%-80% of equipment costs. This program is for the island of Kauai only.

Tax Credits

• Solar and Wind Energy Credit. This is a corporate tax credit, but it can also apply to individuals and residential purposes. It is for the installation of solar water heat, solar space heat, and solar thermal electric and photovoltaic panels. This credit has no expiration date and allows individuals or corporations to claim an income tax credit of 35% of the cost of equipment and installation on a new system.
• Solar and Wind Energy Credit (Personal). This is a personal tax credit, but it can also be used for commercial purposes. It also offers a 35% credit on the materials and installation of solar thermal and photovoltaic systems. This one is set to expire in 2009.
• Total state tax credits in Hawaii amount to 35% or a max of $2250, whichever you reach first. Total federal tax credits equal 30% or a max of $2000.

Net Metering

• Hawaii-Net Metering Incentive Program. This program supports the installation of photovoltaic systems by crediting 1.0% of each utility’s peak demand to the customer’s next bill. Each utility offers a slightly different program, but the purpose is to reward those generating their own electricity through alternative energy sources.

Loan Programs

• The Honolulu Solar Roofs Loan Program. This is available to residents on the island of Oahu for the installation of solar water heat. It offers interest rates as low as 0%, has a varied maximum limit, and has a 7-year term. Qualification for this program is based upon family income.

There are additional incentives offered on the county and city level, making solar energy in Hawaii quite affordable and feasible. Just one more reason to love this tropical paradise!

Sources:

• SolarPowerRocks.com
• DSIRE

Let us Guide You Through the Process

We realize this is a lot of information to digest! The bottom line is that our solar energy consultants are here to walk you through the process, answer any questions you may have, and take care of the paperwork.