In 2011 the LePage administration launched an effort to eliminate Maine’s Renewable Portfolio Standard (RPS), which requires state utilities to gradually increase their use of renewable energy for electricity generation. The Natural Resources Council of Maine, in tandem with a group of other organizations and individuals, have responded to this by announcing a citizen-lead initiativeto require 20% of Maine’s electricity to come from renewable energy sources, and require utilities to invest in energy efficiency whenever it would reduce energy costs for ratepayers.

The effort, lead by a new organization called Maine Citizens for Clean Energy, hitting the ground running, with volunteers across Maine rallying 19,000 signatures in a single day collecting signatures at Maine polling locations this past Election Day, Nov 8.

The Goal: What It Is and Why It Is Important

The initiative would require 20% of Maine’s electricity to come from renewable energy sources by 2020, an increase over the 10% renewable energy goal set for 2017 (and a target of criticism by the Paul LePage administration). It would also require utilities to invest in energy efficiency whenever it would reduce energy costs for ratepayers.

As proponents of an energy diverse, fossil-independent Maine, we think the legislation provides a strong opportunity for Maine to demonstrate leadership in the region. To recap some of the many benefits of renewable energy investments:

• The U.S. solar industry grew by 69 percent in the past year, making it one of the fastest growing sectors in the U.S. economy. ReVision Energy’s growth in Maine and New Hampshire closely matches national solar industry growth trends.
• Since the beginning of 2010, the price of solar panels has dropped by 30 percent, and costs continue to fall, making solar even more affordable for residential and business customers.
• Continued industry growth enhances our energy security and diversifies our domestic energy portfolio.

The clean energy sector is one of the bright spots in Maine’s economy, from local companies building, operating, and manufacturing components for wind farms and solar panels, to those installing energy efficient equipment in our homes and businesses. Increasing energy efficiency and transitioning to local renewable generation will help lower energy costs, stabilize energy prices, and improve the bottom line for Maine’s businesses and households.

Helping Out

ReVision Energy staffers volunteered at several polling stations to collect signatures on November 8th, and found that Maine citizens are warm-hearted towards clean energy and eager for this kind of legislation.

“It was thrilling to see how many people lit up about getting clean power on the ballot,” said Fred Greenhalgh, Online Marketing Manager of ReVision Energy, who collected signatures in South Berwick.  “Folks from all sides of the political spectrum kept expressing to me how they felt energy independence and clean-energy jobs are a no-brainer, and want to see our state take a more ambitious track towards conservation and renewable energy generation than what has been set by our current leadership.”

Volunteers in the petition drive will be throughout the State working to get another 40,000 signatures statewide which will ensure the proposed legislation makes in on next year’s ballot.  Keep an eye out at the local grocery store, health food store, Christmas tree lightning ceremony and other public events.  You can also learn more yourself and support by visiting the Maine Citizens for Clean Energy website: www.cleanenergymaine.org.

A 4kw solar electric system recently installed in Portsmouth, NH with premium Sunpower solar electric modules.

This just in from the NH PUC – the residential solar electric (GTPV) rebate in New Hampshire has returned! The rebate, available for systems under 5kw in capacity, is $1.25 per watt up to a maximum of $4,500 or 50% of the system cost, whichever is less.

Of the $927,964 of funding, $500,000 is already committed to waitlisted projects, so if you want to take advantage of the credit, the time to act is now! Combined with unprecedented solar electric prices (in the $4.5/watt range), grid-tied photovoltaic (GTPV) systems are an incredible deal in New Hampshire.

Here is what a 3.6kw system, enough to make out the rebate, looks like:

$16,200 gross installed cost
-($4,860) 30% federal tax credit
-($4,500) state of NH rebate
$6,840 net investment

This system locks in your electric rate for 20 years at around .06c/kWh!!!  At today’s prices, the system will produce around $750/yr worth of electricity, for a payback of under 10 years.

As half of the funds are already committed, we urge you to act now if you want to take advantage of this generous state incentive.  Contact us to get started with a free evaluation.

Full details on the NH Solar rebate on PUC website: http://www.puc.nh.gov/Sustainable%20Energy/RenewableEnergyRebates.html

The Vermont Energy Act of 2011 expands the State’s net metering program, establishes a minimum .20c/kWh benefit for renewable energy, and streamlines the permitting process for new photovoltaic systems.

Renewable Energy World concisely summarizes the program:

The process, which replaces permitting, allows solar customers to install the system 10 days after completing a registration form and certificate of compliance with interconnection requirements. The utility has 10 days to raise any issues concerning the interconnection, otherwise a Certificate of Public Good is granted and the project may be installed.

By making the standards for solar installations consistent state wide, Vermont recognizes that in the hands of competent installers, a grid-tied solar energy system is a straightforward installation with little risk to the homeowner.

The Green Mountain State Leads the Nation

Vermont’s progressive vision is literally first in the nation and has inspired many other states as a result. Installers in California, for example, estimate similar measures would eliminate $2,516 in permitting costs per residential installation and provide a $1 billion stimulus to the solar industry over the next five years.

To keep standards of work high, Vermont regulates quality through close relations with the independent, nonpartisan trade association Renewable Energy Vermont (REV). For a homeowner to access state rebates, they must contract an installer who has been scrutinized by REV, a process which includes a review of prior work, proof of technical competence, and a request to review NABCEP credentials.

What Vermont’s Neighbors Can Learn

ReVision Energy solar installers at Lake Region Community College.

The streamlined permitting process and generous, performance based rewards for solar are all part of Vermont’s efforts to build a more independent electric grid and reduce carbon emissions – but it’s not just about the environment.

Martha Staskus of REV said in a recent interview that “Renewable energy development is an economic driver, creating jobs in the development, construction/manufacturing and renewable energy industries. Vermont has more than 300 renewable energy businesses – and as these thrive, job growth benefits.”

In a time when job-creation is a #1 issue for most politicians, we hope the fact that solar is the fastest growing industry in the US will catch their attention. The rewards for clean energy are huge – cleaner air to breathe, reduced stress on the grid, independence from fossil fuel energy and great jobs for the people who install the systems (as our team can attest).

Cheers to the Green Mountain State!

A recently installed solar hot water system in Gorham, New Hampshire

Now’s the time to get in your reservation if you want to benefit from New Hampshire’s generous residential solar hot water rebate (averaging $2,600 for most homes).

We’ve received word that the reservation window has been reduced from 12 months to 3 months (that is, the window you have between submitting a pre-approval and having your installation completed), per request from the DOE.

The state is encouraging homeowners to complete all of their solar hot water installations by this October. Due to the popularity of the program we encourage you to contact us today if you want to get a system installed this season. The commercial rebate program still looks good.

The good news is that financially the program still has plenty of funds, though we are told most of the DOE money (which funds the $2,000 portion of the rebate) has already been committed. In general, the solar rebates made possible by ARRA funds are running out, so rebates may likely never be as good as they are today. With oil prices high, and set to go higher, the time is really right for solar!

Click here to see the whole update from New Hampshire PUC.

What About RGGI?

In February/March of this year New Hampshire shocked much of the Northeast by presenting a bill that would pull the Granite State out of RGGI, the Regional Greenhouse Gas Initiative. We called upon lawmakers to think about the long-term implications of such a move and stand up to support RGGI.

This past week, the NH Senate voted to revise rather than repeal RGGI. Businessweek reports:

The Senate voted 16-8 Wednesday to approve an amendment proposed by Senate Republican Leader Jeb Bradley to a House bill. The amendment retains the state’s participation in the program but limits how the money is spent by dedicating it to well-established energy efficiency programs run by the utility companies.

The amendment replaces a bill passed by the House in March that would end the state’s participation in RGGI, but the Senate lacks the votes to override a gubernatorial veto of that legislation. Bradley’s proposal is meant as a compromise.

Gov. John Lynch has not said he would veto the House bill, but he opposes efforts to end New Hampshire’s participation in the greenhouse gas initiative.

“You can’t always get what you want,” Bradley said, “but what we need today is good government. … We have got to fund programs that work.”

Bradley estimates New Hampshire’s program costs the average ratepayer 35 cents per month. His proposal would drop the monthly cost to 17 cents.

Full story here: http://buswk.co/iNiwPp

The Latest from Maine

Legislation that will continue Maine’s solar rebates for the foreseeable future is expected to pass, however the program still has not been given an alternative funding mechanism yet. While the tract looks promising, we still urge you to contact your state legislators if you have not already and ask them to support solar rebates. For those who have advocated on behalf of solar rebates so far… thank you!

We understand around $500,000 remains in the program, which should sustain the ME state solar rebates for at least the next 6 months. We’re hoping to see an effective funding alternative make it into place for a more sustainable continuation of the program before the current funds are exhausted.

ReVision joined energy auditors, architects, and builders last week for a rally in support of UBEC, the Uniform Building and Energy Code, which sets standards for how homes and commercial buildings are built, from structural strength to ventilation, foundations and even the size of aggress windows. The Code also includes tough standards for energy conservation to help ensure new homes in Maine are less fossil-fuel dependent than their predecessors.

In a speech given by ReVision’s Jennifer Albee, we took the opportunity to highlight the value of the energy efficiency industry as a bright spot in a tough economy. Albee emphasized how exciting it is for a young person born and raised in Maine, to be in an industry geared for the future!

A 2kw ground mount photovoltaic system installed in Wells, Maine

ReVision Energy, in tandem with trade group MABEP and other partners in Maine’s renewable energy industry, is working hard for enactment of LD 761, An Act To Provide Rebates for the Purchase of Certain Solar and Wind Power Equipment.

The bill would extend Maine’s solar rebate program, which was inadvertently scheduled for termination in legislation passed last year due to a clerical error. But even though the termination was due to an error, our industry has to argue the merits of the solar energy program all over again.

If you’re a Maine resident, please contact your State representative and senator TODAY to request that they support LD 761, “An Act To Provide Rebates for the Purchase of Certain Solar and Wind Power Equipment.” You can click here to look up your legislators and their contact information. You can also see the specific legislators on Maine’s Energy, Utilities and Technology committee.

Action on this bill is expected as early as Thursday 3/24, so time is of the essence!

Here are some of the key talking points about the efficacy of the solar rebate program:

• Support for energy independence and small scale renewable renewable rebates has been unanimous and bipartisan in the past.
• The solar industry creates stable, good paying jobs in Maine.  A reliable rebate program is essential to creating a business-friendly climate. Businesses suffer when legislative snafus cause programs to end abruptly.
• The solar rebate program has distributed $600,000 in rebates, spurring $6,000,000 in private investments in solar energy systems. This 10:1 private/public funding ratio is good for all Mainers because it reduces statewide fossil fuel dependence and keeps money in the local economy.
• 40% of the cost of electricity is to pay for power lines used for transmission/distribution. Distributed generation options – i.e. grid-tied PV – are an important way to reduce the need to invest in expensive line upgrades over time.

One of the things we treasure about Maine is that politics are still local, and a few voices of support on this issue will make a tremendous difference when Maine’s legislature convenes to discuss the future of a state rebate program in Maine.

Please act today, and thank you!

This rendering shows how the proposed Northern Pass tranmission line expansion project would affect the view of a stretch of Rte 125 that faces Clarksville, NH.

The road to a renewable grid is not always a pretty one. The northern pass transmission project, a brainchild of PSNH and HydroQuebec, is the latest example.

The current plan calls for building out a tall transmission line through New Hampshire’s north country, including 40 miles of wild, unspoiled terrain in Coös County, and roughly five miles in the White Mountain National Forest.  The idea is to transmit low-cost hydroelectric power to satisfy the growing requirement for renewable generation in southern New England.

Opposition to the project from residents and local businesses has been unequivocal. A blog titled Bury the Northern Pass contains interesting information about the claimed benefits and impacts of the project. The Town of Easton will be voting on full-on municipal opposition to the project in March.

Why are people opposed to the Northern Pass?

• There is not demonstrable need for the project in the state, since New Hampshire is already a net exporter of electricity.  Benefits of this project would mostly go to residents of Massachusetts, Connecticut, etc. who’d see their peak grid supply increase, and to the energy provider (i.e. Hydro Quebec), who would gain access to the market through a widened conduit.
• The regional economies of Grafton and Coös Counties largely rely on the wild natural character of the land, for example tourism, hospitality, and other outdoor pursuits.   Part of this character would be lost with the construction of 100-foot tall transmission towers over the 180-mile route.
• There are alternatives to the project.  Distributed generation such as solar photovoltaic arrays represent a more rational and gradual way to build out grid capacity, and directly benefit the localities where it is installed by locking in electricity rates though decades of future production.  Although we agree that renewable resources should play a fatter role in the Northeast’s power supply, running Big Wires though pristine mountain passes in the north woods is not a good “plan A.”

A recent letter to the Union Leader provides a good summary of the arguments against the Northern Pass, and notes the amount and intensity of local opposition.  There was also a vigorous public debate about RPS, which dovetailed into a debate about Northern Pass, two weeks back.

As promoters of smart solutions to our energy problems, and lovers of the rugged outdoors which gives New England its character, we hope to see alternatives to the Northern Pass gain steam and a healthy debate in Concord follow.

Make it a Sunny New Year!

There is bright news for both homeowners and businesses who are ready to make 2011 the year they finally go solar – several federal credits remain in place or have been extended.

In short:

• The uncapped 30% federal tax credit on residential solar electric and solar hot water systems remains in effect through 2016.
• In 2011 businesses can get a 30% federal cash grant in lieu of a tax credit, on top of state rebates (up to $2,000 in Maine, up to $50,000 in New Hampshire)
• Through 2012 bonus depreciation has been extended, allowing businesses to take up to 100% of the depreciation benefit of a solar energy system in year one for systems installed in 2011, and up to 50% in year one for systems installed in 2012 (with the rest coming over the next five years)

Read on for more specifics about each incentive.

Residential 30% Federal Tax Credit

The 30% federal tax credit is called the “Residential Renewable Energy Tax Credit” and was established by the federal Energy Policy Act of 2005.

This credit was initially capped at $2,000 for solar energy systems, but was expanded by The American Recovery and Reinvestment Act of 2009 to be an uncapped rebate for 30% of the cost of a renewable energy system (both photovoltaic and solar thermal are eligible, along with small wind and geothermal heat pumps).

The 30% includes all cost of labor as well as equipment costs for the renewable energy system. The credit can also be carried forward to future tax years if you cannot take the full credit in the year the system was installed.

More information:

• A homeowner claims the 30% credit on IRS 5695, Residential Energy Credits (PDF)
• The Solar Energy Industries Association has a great solar federal tax incentive FAQ
• Also see DSIRE – Residential Renewable Energy Tax Credit

Note: This credit is not to be confused with the “Nonbusiness Energy Property Credit,” which expired in 2010. That credit specifically applied to home “energy efficient” improvements, specifically:

• Biomass stoves (wood and pellets)
• HVAC equipment
• Insulation
• Windows and doors
• Roofing improvements

If you did purchase any of the above that meet Energy Star criteria, you can claim up to $1,500 on your 2010 taxes. See Energy Star’s website.

Treasury Grant in Lieu of a 30% Investment Tax Credit

In late 2010 Congress extended the 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits.

This incentive allows businesses to receive a cash grant from the US Treasury in lieu of waiting until they file their taxes to receive the 30% federal tax credit (called the Business Energy Investment Tax Credit (ITC), but with similar rules as the residential program).

By having access to the treasury grant, the program allows businesses to receive the full amount of the emergy credit even if they do not have enough tax liability to take the full 30%.

It also helps all businesses by getting cash into their hands more quickly, rather than waiting until they can file their taxes.

More information:

MACRS + Bonus Depreciation

Under federal tax code, renewable energy systems qualify for a 5-year Modified Accelerated Cost-Recovery System (MACRS) depreciation schedule.

The exact benefit of this depreciation is complicated and varies depending on your businesses’ tax rate, but typically it adds up to an additional 25% of a solar energy project’s cost being offset by reduced tax payments.

To further sweeten this incentive, in 2011 bonus depreciation has been extended, letting a business enjoy most of the benefit in year one, rather than waiting for the entire five year schedule.

DSIRE sums it up nicely:

The federal Economic Stimulus Act of 2008, enacted in February 2008, included a 50% first-year bonus depreciation (26 USC § 168(k)) provision for eligible renewable-energy systems acquired and placed in service in 2008. This provision was extended (retroactively for the entire 2009 tax year) under the same terms by The American Recovery and Reinvestment Act of 2009, enacted in February 2009. Bonus depreciation was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297).

In December 2010 the provision for bonus depreciation was amended and extended yet again by The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 qualifies for 100% first-year bonus depreciation. For 2012, bonus depreciation is still available, but the allowable deduction reverts from 100% to 50% of the eligible basis.

The short of this is that a business that installs a qualifying solar energy system in 2011 can enjoy a 100% bonus depreciation the first year the system is commissioned, rather than waiting for the entire 5 year depreciation schedule. Also, a 50% bonus depreciation is available through 2012.

Given the time value of money and the tough economic climate, this benefit helps make solar energy systems more accessible in the near-term by businesses that will be able to save significant fossil fuel energy costs over the life of the system.

In fact, between the treasury grant, bonus depreciation, and generous state rebates, many businesses (particularly heavy water users like inns and restaurants) can enjoy a year-one payback on solar energy systems!

More information:

What Do Rebates Mean for Me?

Here are a few example solar energy projects to help illustrate how federal incentives affect solar energy economics.

Scenario #1- Residential SHW system

$10,500 installed cost
-$1,000 ME Solar Rebate (avg. $2,600 NH state rebate)
-$3,150 30% Fed Tax Credit
$6,350 Final Cost (40% savings with current incentives)

Scenario #2- Residential PV system 4kw (5,200 kWh/yr)

$19,000 installed cost
-$2,000 ME Solar Rebate (currently no NH state rebate)
-$5,700 30% Fed Tax Credit
$11,300 Final Cost (40% savings with current incentives)

Scenario #3- Commercial PV system

$100,000 installed cost
-$2,000 ME Solar Rebate (up to $50,000 in New Hampshire)
-$28,900 accelerated depreciation – avoided taxes over 5 years thanks to lowered net income, assumes 34% marginal tax bracket
-$30,000 30% Fed Tax Credit
$39,100 Final Cost (60% savings with current incentives)

Interested in learning more? Contact Revision Energy for a free consultation about how to take full advantage of the current government incentives available for renewable energy projects.