Design/build remodeler Michael McCutcheon, in Berkeley, Calif., has been a “green” remodeler for many years, with several certified green professionals on his staff. Despite his knowledge (or perhaps because of it), McCutcheon uses trade partners — PV or electrical — for the PV systems he has placed on clients’ homes.
Although McCutcheon’s upscale clients are usually “true believers, not necessarily those who want to save money on an energy bill,” he does explain to them about federal and state tax credits and rebates and helps to gather the proper documents. But he turns the paperwork over to the vendors. “The homeowner has a lot of documents to sign, and we can’t change over the utility information; the owner has to do that.” The vendors, like SRE, are more equipped to handle the administrative tasks.
Although PV has been around for decades, the industry is still seen as relatively new, and it’s difficult for remodelers to learn everything they need to know about efficiency, mounting, the visibility of the array, and placement, not to mention the electrical expertise required. “We have to talk to a number of PV vendors to find the right one to use,” says McCutcheon, who keeps up by reading and asking questions. —Stacey Freed, senior editor, REMODELING.
BOTTOM LINE
Homeowners are eligible for a 30% tax credit on the cost of qualified solar systems for their primary residence. There is no cap on the credit amount (as there was in earlier bills). The “cost” to the consumer on which the credit is based includes site preparation, assembly, original installation, and piping and wiring that might connect the device to the home, as well as labor and markup. According to the April IRS notice 2009-41, the credit applies to residential energy-efficient systems placed in service before Jan. 1, 2017. While there’s no Energy Star–label equivalent for solar panels, they must have a UL or OSHA certification. To get the credit, consumers must keep a manufacturer’s certification for their records and fill out IRS form 5695.
Local Look: States Weigh In
CALIFORNIA: In addition to federal incentives, various states, municipalities, and local utility companies offer incentives. For example, Greg Buechler, owner of Solar Universe, a franchisor, is able to get a 15% rebate from utility company Pacific Gas & Electric on the $30,000 cost of the PV system installed on the roof of his Northern California home. “That’s $4,500, [which is] pretty much a down payment on the system,” Buechler says. “That leaves $25,500. The federal government says you can knock off $9,000 — this is the 30% tax credit, no cap. My $30,000 system just had $13,500 knocked off it. Now the system is $16,500. I’m paying 55% of the original cost. That’s a nice incentive program.”
While California may be in the forefront, and Hawaii has reached “grid parity” — the point at which the price of electricity is so high and the cost of solar so low that it’s break-even — other states are enticing consumers to switch to solar. Maryland has exempted solar energy systems from sales and use taxes. Massachusetts has several loan and grant programs as well as the “ Commonwealth Solar” rebate program, which offers $1 to $4.40 per watt for grid-tied systems. (For more information on individual states, check the Database of State Incentives for Renewables and Efficiency website.) —Stacey Freed