How Power Purchase Agreements (PPAs) Allow Businesses And Homeowners To Go Solar.

A financing option known as a Power Purchase Agreement (PPA) is available to business and home owners who are looking to go solar but for a fraction of the cost. A Power Purchase Agreement (PPA) is a legal contract between an electricity generator (PPA Provider) and a host site owner/lessor (business/home owner). The business/home owner purchases energy from the PPA Provider at a contractual price (typically at current or discounted utility rates) for a negotiated number of years. This allows business/home owners to lock in current energy costs all the while going green. The biggest advantage to the business/home owner is a predictable monthly electricity payment not subject to utility price volatility. Although most PPA contracts will have an inflation escalator year to year (typically 3-5%), it is still below the historical utility increase of 7+% each year.

In addition to energy cost containment, under the terms of a PPA, the PPA provider assumes the risks and responsibilities of ownership such as the purchase, operation, and maintenance of the solar facility. However, because the PPA Provider is the owner of the solar system, all tax credits, grants, and utility rebates belong to the PPA Provider. If you are looking into a PPA you should weigh the advantages and disadvantages summarized below:

Advantages

• Current/discounted utility costs
• Hedge against energy costs
• Long-term predictable energy costs
• Use of Solar Energy For A Fraction of the solar system market value
• Customer only pays for energy produced
• Customer can advertise it's use of "clean energy"

Disadvantages

• Client not eligible for tax incentives, grants, and utility rebates
• Client does not own system
• Client pays for energy produced regardless of actual usage
• 15 to 25 Years of PPA payments depending on contract terms

For more information on whether or not a PPA is appropriate for you, contact us at:
info@djhconstruction.com or (949)233-1618.

DJH Construction, Inc. Completes A Solar Installation On A Habitat for Humanity Project

Habitat for Humanity solar project makes the front page of the September 1, 2009 issue of the Mojave Valley Daily News. The project was made possible by the efforts of DJH Construction, Inc., Arizona Electric Power Cooperative, and Mojave Electric Cooperative.

To read more about the project, click on the link below or paste the link to your browser.

http://www.mohavedailynews.com/articles/2009/09/01/news/local/local2.txt

Why Going Solar Is More Affordable Now?

If you have been looking into going solar but think it is too expensive, you may be able to go green sooner than you think.

Anyone who has looked into going solar or wants to go solar can now benefit from the decrease in solar panel prices and the increase in federal and state incentives that subsidize solar. According to investment bank analysts at Piper Jaffray, the price of panels have dropped nearly 40 percent compared to last year. What is driving the cost down? Simple supply and demand as well as the decreasing cost of raw materials.

Although solar demand has increased in the United States due to federal and state incentives, overall worldwide demand has decreased. The decrease in demand is in large effect from the decreasing solar subsidies in European countries, making the installation of solar more cost-prohibitive with a longer payback period. According to Emerging Energy Research, a consulting firm, solar photovoltaic installations in Europe are forecasted to fall by nearly 26 percent compared to last year.

The decreasing cost and availability of polysilicon (the key component to most types of manufactured solar) has also contributed to the decrease in solar panel costs. More overseas companies, especially in China have become involved in the direct manufacturing of polysilicon which has decreased the overall cost of manufacturing the panel. Consumers can also benefit from the technological advances in the solar industry that have lead to increased efficiency in the solar modules manufactured today. This means fewer panels with greater energy output.

In addition to the decreasing cost of panels, consumers can also take advantage of available federal and state solar rebates, credits, and grants to further decrease the net cost of their solar system. To better understand what solar incentives are available in your state, visit the Database of State Incentives for Renewables and Efficiency at: www.dsireusa.org.

Attention Business Owners - 30% Solar Grant Now Available

The Department of the Treasury has recently made available the instructions to apply for the Renewable Energy Grant. This grant is part of the Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. It authorizes the US Department of the Treasury to make payments in the form of a cash grant to commercial, agricultural, and industrial properties that install a qualified renewable energy system such as a solar photovoltaic system.

Where previously the 30% Investment Tax Credit (ITC) allowed solar investors to reduce their tax liability by the amount of the tax credit, Section 1603 now allows investors the option to access a cash grant instead. This is advantageous to those who are looking to invest in solar but do not have the tax liability to take advantage of the 30% tax credit. Although the tax credit can be carried forward into the subsequent tax year, the full benefit of the 30% tax credit cannot be realized until taxes are filed. The grant provides a great alternative to the ITC. The solar grant allows investors to receive a cash grant within 60 days or less of the grant application or the date the solar system is placed in service, whichever is later.

If you are interested in taking advantage of the 30% grant, below is a list of eligibility and provisions for Section 1603:

o Only tax-paying entities are eligible for this grant.
o Applicable Sectors: Commercial, Industrial, Agricultural
o Grants are available to “eligible property* placed in service in 2009 or 2010
o Eligible solar-energy property includes equipment that uses solar energy to generate electricity (photovoltaics), to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Passive solar systems and solar pool-heating systems are not eligible. Hybrid solar-lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible.
o Grant applications must be submitted by October 1, 2011
o The Treasury will make Section 1603 payments to qualified applicants equal to 30% of the basis of the solar photovoltaic property - this includes solar equipment, installation, and freight.

Contact us to learn more about this grant and other incentives for your solar installation at info@djhconstruction.com.

Renewable Energy Trike On Display At The 2009 4th of July Huntington Beach Parade.

DJH Construction, Inc. recently donated solar equipment to the E/Motion electric vehicle project at Golden West College (GWC). This solar powered trike model electric vehicle will be on display at the 2009 4th of July Huntington Beach parade. Professor Greg Wight’s transportation design students conceived and created the E/Motion electric vehicle and DJH Construction donated (3) 20 Watt YingLi Solar Modules and a 10 Amp Charge Controller. The solar modules and charge controller will be retrofitted on the hybrid (pedal/electric) trike to charge the battery using the sun’s energy. This is the first of many future prototypes that will be created by the students at GWC’s design school utilizing solar technology. Stop by our exhibit to learn more about solar powered vehicles:

Date: July 4th, 2009
Location: 325 Pacific Coast Highway, HB, 92648 (Main & Pacific Coast Highway / Huntington Beach Pier - Huntington Beach, CA)
Event Time:
• Parade 10 a.m. – 12 p.m.
• Exhibitors – Food Vendors – Live Entertainment 10 a.m. – 9p.m.
• Fireworks Show 9 p.m.

View this trike in action at: http://www.youtube.com/watch?v=SCgihzmxoQ8

How Arizona Residents Can Tap Into Local, State and Federal Incentives To Go Solar

DJH Construction, Inc., a leading integrator of solar electric power systems announced the completion of a residential photovoltaic installation located in Fort Mojave, Arizona. This 5.06 kW system was installed on the residence of Larry Morse. The solar project was completed from beginning to end in two and a half weeks. This includes: contract signing, permitting, utility rebate reservation, final inspection, and commissioning/start-up. The actual installation itself was completed in two days after materials delivery.

Current incentives available to Fort Mojave residents include: a Utility Rebate, State Tax Credit, and Federal Tax Credit. Mohave Electric Cooperative customers are able to take advantage of a $3.00/watt utility rebate with a $12,000 maximum. This means that clients like Morse are able to offset the cost of installation by the amount of the rebate. In addition to the rebate, Morse will be able to take advantage of a $1,000 Arizona Tax Credit and 30% Federal Tax Credit. The basis for the tax credits is calculated from the net cost of the installed system, the cost after deducting the rebate amount.

The 5.06 kW photovoltaic system ties together a total of 22 Sharp photovoltaic panels onto 900 square feet of roof space. The estimated reduction in green house gas emissions from this system is estimated to be 141 tons of CO2 over the 25+ years. This reduction in green house gas emissions is equivalent to planting 5,648 trees or driving 478,644 miles in a small car.

"The Morse's solar project is another step in DJH Construction, Inc.’s long-term commitment to advance the delivery of renewable energy to the grid. We are grateful to play an active role in growing this nascent market in Fort Mojave and surrounding counties,” said Don Harris, president of DJH Construction, Inc.

How To Use Property Tax Assessments to Finance Your Solar System.

California passed AB 811 in September 2008, giving all California cities and counties the ability to offer low-interest loans for renewable energy projects to homeowners and small businesses. The cities are able to finance the installation costs through either City internal funds or the issuance of a bond and the project is secured through a property lien. The cost of the bond is then recouped over a specific time frame and repayment is made through tax rolls. For example, in the City of Palm Desert, AB811 offers a low interest rate loan (so far at 7% amortized over 20 years) from the City and is repaid every six months along with the County property tax payment.

Some of the advantages to AB811 are:
• Transferability - Residents would pay back the loans through assessments on property tax bills; if they move, the outstanding loan balance is taken over by the new owner.
• Little to No Out of Pocket Money - The renewable energy property owner immediately enjoys a greatly reduced electric bill with no out-of-pocket expense.
• Access to Capital - It requires NO credit check and can pass to new owners of property without future credit checks through title transfer at escrow. Loans have a minimum of $5,000 and no maximum limits.
• Small Payments Over Longer Time - The interest rate is fixed and paid bi-annually through property taxes.

California cities currently offering this financial vehicle are:

- Berkeley - Financing Initiative for Renewable and Solar Technology (FIRST)
- Palm Desert - Energy Independence Program
- Santa Monica - Solar Santa Monica
- Sonoma County - Energy Independence Program

For more information on how you can access AB 811 or other solar financing options, contact us at info@djhconstruction.com. You can read this press release at:
http://www.prlog.org/10260739-how-to-use-property-tax-assessments-to-finance-your-solar-system.html