Money for Nothing and Heat for Free: U.S. Incentives for Solar Water Heating Ty Gorman North Carolina Solar Center Database of State Incentives for Renewables.

Money for Nothing and Heat for Free: U.S. Incentives for Solar Water Heating Ty Gorman North Carolina Solar Center Database of State Incentives for Renewables and Efficiency (DSIRE) www.dsireusa.org InterSolar North America July 13, 2011

Things to Cover Using DSIRE for solar hot water heating incentives The federal and state incentive landscape Utility and private incentives and innovations

DSIRE and Solar Hot Water Heat The DSIRE Search Tool is your best friend: http://www.dsireusa.org/searchby/index.cfm?ee=1&RE=1http://www.dsireusa.org/searchby/index.cfm?ee=1&RE=1

DSIRE Solar Portal Interactive Policy Map: Provides quick access to state-specific solar information Solar Policy Guide: Offers descriptions of various state and local policy types for promoting solar; status and trends of individual policies; specific policy examples; and links to additional resources Summary Maps: Provide geographical overview of incentives across the country Solar Policy Comparison Tables: Highlight individual elements of state rebate and tax credit programs myDSIRE For-Fee Services: Custom DSIRE data feeds and updates beyond the scope of free public resources.

The Federal Incentive Landscape Business Energy Investment Tax Credit (ITC) Federal Business Energy Investment Tax Credit (ITC) MACRS Residential Renewable Energy Tax Credit Federal Residential Renewable Energy Tax Credit U.S. Department of Treasury - Renewable Energy Grants Federal U.S. Department of Treasury - Renewable Energy Grants Residential Energy Conservation Subsidy Exclusion (Personal)

State Incentives and Examples Incentive Types State/Utility Direct Incentives: Production, Grants, Loans Tax Incentives: Credits, Sales, Property RPS: SWH in Solar Carve Out (REC Sales) Around 43 states offer direct incentives for solar thermal systems. These incentives, which typically cover 20% to 50% of project costs, have played a significant role in encouraging solar installations.

Financial Incentives for Solar Water Heating www.dsireusa.orgwww.dsireusa.org / April 2011 Direct Cash Incentive Tax Credit VT NH MA RI CT NJ MD U U U U U U U U U U U U U U.S. Virgin Islands Puerto Rico U Direct Cash Incentive and Tax Credit DC Sales Tax Incentive Property Tax Incentive Tax DeductionUtility Direct Cash Incentive(s) Local option to provide property tax incentive U $ $ Local option to provide sales tax incentive $ U $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ U $ U U U U U 41 states + DC, PR & USVI offer financial incentives for solar water heating 41 states + DC, PR & USVI offer financial incentives for solar water heating

Direct Cash Incentives for Solar Projects www.dsireusa.orgwww.dsireusa.org / April 2011 State Direct Cash Incentives for PV State Direct Cash Incentives for Solar Water Heating State Direct Cash Incentives for both PV and Solar Water Heating U U U U U U U U U U U U U U U UU U U U U U U U U U VT NH MA RI U Utility Direct Cash Incentive(s) for PV and/or Solar Water Heating U U.S. Virgin Islands U U DC Puerto Rico U U U U 28 states +DC, PR & USVI offer direct cash incentives for solar projects

State Rebates for Solar Projects www.dsireusa.orgwww.dsireusa.org / April 2011 State PV Rebates State Solar Water Heating Rebates State PV and Solar Water Heating Rebates U.S. Virgin Islands 21 states + DC, PR & USVI offer rebates for solar projects 21 states + DC, PR & USVI offer rebates for solar projects Puerto Rico DC

State Loan Programs for Solar Projects www.dsireusa.orgwww.dsireusa.org / April 2011 Loan Programs for Solar Projects Utility Incentive(s) U U U U U U U U U U U U 31 states + USVI offer loans for solar projects 31 states + USVI offer loans for solar projects DC U.S. Virgin Islands U U U U U

State Tax Credits for Solar Projects www.dsireusa.orgwww.dsireusa.org / April 2011 Incentives for Residential Projects Incentives for Commercial Projects Incentives for Residential and Commercial Projects Applies to Solar Electric only 21 states offer tax credits for solar projects 21 states offer tax credits for solar projects DC

State Property Tax Incentives for Solar Projects www.dsireusa.orgwww.dsireusa.org / April 2011 Local Option for Property Tax Incentive Applies to Solar Water/Space Heating Only Applies to Solar Electric Only Property Tax Incentive Puerto Rico 30 states + PR offer property tax incentives for solar projects 30 states + PR offer property tax incentives for solar projects DC State Property Tax Incentive and Local Option for Property Tax Incentive Puerto Rico

State Sales Tax Incentives for Solar Projects www.dsireusa.orgwww.dsireusa.org / April 2011 Sales Tax Incentive Applies to Solar Electric Only Puerto Rico DC State Sales Tax Incentive and Local Option for Sales Tax Incentive 21 states + PR offer sales tax incentives for solar projects 21 states + PR offer sales tax incentives for solar projects

RPS Policies with Solar/DG Provisions Renewable portfolio standard with solar / distributed generation (DG) provision www.dsireusa.orgwww.dsireusa.org / June 2011 Solar water heating counts toward solar provision WA: double credit for DG NV: 1.5% solar x 2025; 2.4 - 2.45 multiplier for PV UT: 2.4 multiplier for solar-electric AZ: 4.5% DG x 2025 NM: 4% solar-electric x 2020 0.6% DG x 2020 TX: double credit for non-wind (non-wind goal: 500 MW) CO: 3.0% DG x 2020 1.5% customer-sited x 2020 MO: 0.3% solar- electric x 2021 MI: triple credit for solar- electric OH: 0. 5% solar- electric x 2025 NC: 0. 2% solar x 2018 MD: 2% solar x 2022 DC: 0.4% solar x 2020 NY: 0.4788% customer- sited x 2015 DE: 3.5% PV x 2026; triple credit for PV NH: 0.3% solar- electric x 2014 NJ: 5,316 GWh solar- electric x 2026 PA: 0.5% PV x 2021 MA: 400 MW PV x 2020 OR: 20 MW solar PV x 2020; double credit for PV IL: 1. 5% PV x 2025 WV: various multipliers 16 states + DC have an RPS with solar/DG provisions DC

Succesful SHW Incentive Design Stable, long-term funding that decreases over time. Adequate system performance. Quality-assurance and trained technicians. Concise application process and flexibility. Commitments for public buildings. Program evaluation. Low-interest financing, standardized permitting, solar access laws, and tax incentives. Educate and market

Innovative Non-government SHW Incentives FLS Solar hot water lease Commercial solar water systems can cost anywhere from $100,000 to $10 million. FLS signs 10 year contracts for the water, then gets subsidies from local utilities, who use FLS to meet their own green power commitments to state government. Lakeland / Regenesis hot water service Solar water heater, including installation and service, for $35.95/ month with a 20-year price guarantee and no additional fees. Customers pay the monthly fixed price along with their electric bill, and save electricity costs. States or local governments passing solar ready homes requirements Colorado Tucson, AZ

Ty Gorman North Carolina Solar Center DSIRE (www.dsireusa.org) myDSIRE Services (www.myDSIREusa.org) [email protected] 919-513-0648 [email protected]

Money for Nothing and Heat for Free: U.S. Incentives for Solar Water Heating Ty Gorman North Carolina Solar Center Database of State Incentives for Renewables.

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