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.

The Solar Energy Council of Orange County Hosts It's First Event

The Solar Energy Council of Orange County (SEC-OC) hosted a "Go Solar Now" event at the Golden West College in Huntington Beach, California last night. The event featured guest speakers: Don Harris of DJH Construction, Inc. and Laura Franke of Clean Energy Advocates. Both speakers presented different topics on the Obama stimulus package and how it will affect the solar installation community during 2009. This event was organized to assist in clarifying many misconceptions of what is allowable, and what is not allowed for solar installations under the economic stimulus act, AB811, and SB1. In addition, an overview of financing and PPA options for system developers and homeowners was also addressed. Laura Franke presented SB811, SB1 and muncipal requirements for government guaranteed loans for renewable energy projects. Don Harris presented on various solar financing options: Power Purchase Agreements (PPA), Renewable Energy Certificates (REC), and Renewable Energy Portfolio (REP) standards.

The turn out was a huge success and a great networking event that brought together solar advocates and professionals from all over the Orange County area. The SEC-OC is looking to expand its membership base and is open to the public. Please visit the SEC-OC website at: www.solarenergycouncil.org for more information on future events and membership opportunities.

This press release can be viewed at:
The Solar Energy Council of Orange County Hosts A "Go Solar Now" Event

DJH Construction, Inc. Completes a 2.99 kW Residential Photovoltaic System in Fort Mojave, Arizona.

DJH Construction, Inc., a leading integrator of solar electric power systems announced the completion of a residential photovoltaic installation located in Fort Mojave, Arizona. The 2.99 kW system was installed on the residence of Scott and Elaine Seabury and is expected to reduce more than 86 tons of CO2 over its 25+ year lifetime. The reduction in green house emissions is equivalent to traveling 177,526 air miles or driving 291,864 miles in a small car. "Our decision to go solar reflects the value we place on green technology and environmental stewardship,” said Scott Seabury.

DJH Construction, Inc. financed a portion of the system for the Seabury’s utilizing the 30% Renewable Energy Grant available through the Department of the Treasury. The federal grant program is part of the American Recovery and Reinvestment Act of 2009 that was enacted in February 2009. The grant is equal to 30% of the basis of the property for solar energy. Eligible solar-energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. For more information about the grant, check out the Database of State Incentives for Renewables & Efficiency under the Federal Incentives tab. Or follow the link: .

DJH Construction, Inc’s solar financing program allows residents to reduce their total out of pocket costs to go solar and take advantage of lower annual electricity costs by supplementing their current energy usage with solar. "We have a great deal of experience as a solar systems integrator and that experience is one of our key competitive advantages," said Don Harris, President of DJH Construction, Inc. "By making the 30% grant immediately available to our clients it enables us to give our clients more flexibility in their financing options to go solar."

What Homeowners Should Know When Investing In Solar

How does the Investment Tax Credit (ITC) stack up to the Renewable Energy Grant (REG) for homeowners? We did a hypothetical cost comparison between the two based on the following assumptions:

- Type: Residential
- Utility: Southern California Edison
- Rebate: Step 3, $2.20/Watt
- California state tax on rebate (this is still to be determined)

Here is what we found:



According to the results, the incentive for the REG is greater than the ITC by more than $3,400.00. This amount is even larger if the 30% tax credit is not taxed at the state level. Below is a table summarizing this scenario. The incentive increases by $0.23/watt, adding almost another $2,300 to the difference in the ITC vs. REG. Either way you look at it, the REG offers a great way for homeowners to offset the initial capital outlay of a solar system.

Renewable Energy Grant

The enactment of the American Recovery and Reinvestment Act of 2009 includes a renewable energy grant program that will help businesses and homeowners offset the initial cost of installing a solar system. To better understand how this grant works, we’ve compiled a short list of key points to the grant that you should consider:

1. Who is eligible?
Only tax-paying entities are eligible for this grant. Federal, state and local government bodies, non-profits, qualified energy tax credit bond lenders, and cooperative electric companies are not eligible to receive this grant. Partners or pass-thru entities for the organizations described above are also not eligible to receive this grant.

2. How much is the renewable energy grant?
30% of the basis of the property for solar energy.

3. What types of solar is eligible for the renewable energy grant?
Eligible solar-energy property includes equipment that uses solar energy to generate electricity, 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 also eligible.

4. How is the grant paid?
The U.S. Treasury Department will make payment of the grant within 60 days of the grant application date or the date the property is placed in service, whichever is later.

5. Is the grant taxable?
The renewable energy grants will not be included in the federal gross income of the taxable entity, but it is unclear whether the federal grant will be treated as taxable income in the states. Check with your CPA for more information.

6. How long will the grant be available?
Grants are available to eligible property placed in service in 2009 or 2010, or placed in service by the specified credit termination date, if construction began in 2009 or 2010. For solar this is January 17, 2017 – which means the solar property must be placed in service by this date. In addition, grant applications must be submitted by 10/1/2011 in order to reserve the grant.

Solar and the American Recovery and Reinvestment Act

On February 17, 2009, President Obama signed the Economic Recovery Legislation. This bill marks a historic milestone within the solar industry and proposes to create 60,000 jobs in the solar industry in 2009 and a total of 110,000 over the next two years.

Three key points to the bill specific to photovoltaic and thermal solar are:

1. Renewable Energy Grants
2. Repeals Penalty for Subsidized Renewable Energy Financing
3. Remove Limits on Solar Water Heating

The renewable energy grants is a new program administered through the Department of Treasury that provides grants equal to 30 percent of the cost of solar property placed in service during 2009 and 2010. This grant replaces the section 48 investment tax credit. (Div. B, Sec. 1104, p. 38)

The bill also repeals the penalty for subsidized renewable energy financing. This allows businesses and individuals to qualify for the full amount of the solar tax credit even if projects receive subsidized energy financing (e.g. below market loans, tax preferred bonds, state grants etc.). This amendment shall apply to periods after Dec. 31, 2008. (Div. B, Sec. 1103, p.36)

The stimulus bill also removes the $2,000 monetary cap on solar water heating, providing a full 30% credit for qualified solar water heating property (Div. B, Sec. 1122(a), p. 46). Qualified solar water heating property is defined as used for a purpose other than heating swimming pools and hot tubs. In addition, the credit may be claimed against the alternative minimum tax.