Hurgoth
Active member
A few weeks ago there was discussion in another thread about rising energy costs and photovoltaic systems. I lost track of that thread and was super busy at work. I figured I would make a new thread to focus on the topic of PV systems and how they may help. Quick recap: I work at an accounting firm and one of the clients assigned to me was a leading installer of PV systems here in CA. I do not represent this company but became fairly familiar with the tax implications of installing one of these systems.
Disclaimer: Figures below are not exact. I am going off the top of my head but I can verify all the numbers if needed. Last I checked my client was moving away from residential jobs and focusing more on commercial systems. My boss handles another photovoltaic account at work and I am pretty sure that guy is focusing only on residential, so either way I can get you in touch with the right people if needed. Also, keep in mind that I am only doing this to help, I am not trying to sell anything to anyone and I could care less who you get to install it. Don't flame me if I forget to cross a "t" or misplace a decimal point. Finally, I am not giving tax advice - if you want tax advice you can send me a PM and we can setup a time to either talk to myself or my boss. I don't want to be responsible for someone dropping cash on a system then getting mad at me if it doesn't work exactly as explained.
This much I do know:
*The CEC handles systems under 30kw. The PUC handles larger, commercial systems. The funding is limited meaning that there is only so much money in the pot. If all the rebates get reserved then you are up poop creek (until legislation changes or more money gets allocated). Also, the money gets reserved quicker in certain areas (higher demand areas) because the funds are allocated to each utility company. This is how it was until recently. There have been changes as of Jan 2006 and I will need to get up to date on them.
*The federal tax credit jumps to 30% of the net system cost (total cost less rebates and incentives) and is limited to $2,000 for residential jobs (there is no limit for commercial installations). You can only get the credit for 1 installed renewable unit per year. You can however, get an additional credit for installing a solar water heater. Last I checked this credit carried forward 10 years
*State tax credts are gone as of Dec 31, 2005. I will check to see if there is anything in the works for the near future.
*Tax credits are limited by AMT. If you are hitting AMT you are pretty much screwed.
*From experience, I noticed that most residential contracts ranged from $18k - $35k obviously depending on size and need. The only thing I am hazy on is the calculation of Kw. For example, I know that a 77Kw system cost $xxx, but how do you determine Kw size? Is it based on daily output, potential max output over a given time? Perhaps someone here can clue me in on that since I am not an electrician. If I know this then I can give you a rough estimate of system cost. Worst case scenario I can get a quick quote from my client.
If you are installing a system for business purpose, the tax benefits and savings increase dramatically. I can go into more detail if requested.
As far as a group buy, if enough people are interested there may be a possibility of some sort of discount. Lets cross the bridge later.
PS - Regarding the HOAs. I know it is a PITA but somehow there is a way around it. I overheard them talking about it a few times. Some HOAs maybe more of a pain than others though.
Hope this helps. Please post any questions.
-Mike
Links to various resources:
Consumer Energy Center (California)
California Energy Commission - Federal Credit Info
More info on federal tax credit (SEIA)
Disclaimer: Figures below are not exact. I am going off the top of my head but I can verify all the numbers if needed. Last I checked my client was moving away from residential jobs and focusing more on commercial systems. My boss handles another photovoltaic account at work and I am pretty sure that guy is focusing only on residential, so either way I can get you in touch with the right people if needed. Also, keep in mind that I am only doing this to help, I am not trying to sell anything to anyone and I could care less who you get to install it. Don't flame me if I forget to cross a "t" or misplace a decimal point. Finally, I am not giving tax advice - if you want tax advice you can send me a PM and we can setup a time to either talk to myself or my boss. I don't want to be responsible for someone dropping cash on a system then getting mad at me if it doesn't work exactly as explained.
This much I do know:
*The CEC handles systems under 30kw. The PUC handles larger, commercial systems. The funding is limited meaning that there is only so much money in the pot. If all the rebates get reserved then you are up poop creek (until legislation changes or more money gets allocated). Also, the money gets reserved quicker in certain areas (higher demand areas) because the funds are allocated to each utility company. This is how it was until recently. There have been changes as of Jan 2006 and I will need to get up to date on them.
*The federal tax credit jumps to 30% of the net system cost (total cost less rebates and incentives) and is limited to $2,000 for residential jobs (there is no limit for commercial installations). You can only get the credit for 1 installed renewable unit per year. You can however, get an additional credit for installing a solar water heater. Last I checked this credit carried forward 10 years
*State tax credts are gone as of Dec 31, 2005. I will check to see if there is anything in the works for the near future.
*Tax credits are limited by AMT. If you are hitting AMT you are pretty much screwed.
*From experience, I noticed that most residential contracts ranged from $18k - $35k obviously depending on size and need. The only thing I am hazy on is the calculation of Kw. For example, I know that a 77Kw system cost $xxx, but how do you determine Kw size? Is it based on daily output, potential max output over a given time? Perhaps someone here can clue me in on that since I am not an electrician. If I know this then I can give you a rough estimate of system cost. Worst case scenario I can get a quick quote from my client.
If you are installing a system for business purpose, the tax benefits and savings increase dramatically. I can go into more detail if requested.
As far as a group buy, if enough people are interested there may be a possibility of some sort of discount. Lets cross the bridge later.
PS - Regarding the HOAs. I know it is a PITA but somehow there is a way around it. I overheard them talking about it a few times. Some HOAs maybe more of a pain than others though.
Hope this helps. Please post any questions.
-Mike
Links to various resources:
Consumer Energy Center (California)
California Energy Commission - Federal Credit Info
More info on federal tax credit (SEIA)
