Financial Incentives for Early Solar Adopters
Financial incentives from both Federal and State governments for investing in solar power systems are available.
U. S. Treasury Section 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits – THE SECTION 1603 PROGRAM HAS BEEN EXTENDED THROUGH December 31, 2011!!! The U.S. Treasury 1603 Program offers a 30% grant in lieu of the Investment Tax Credit (ITC) for qualified commercial installations. To be eligible, a property must be placed in service in 2010, or 2011 or placed in service after 2011, but only if construction of the property began during 2010 or 2011. All applications must be submitted before October 1, 2012. This program also provides a 30% Tax Credit for residential installations. Please click here: Federal
The Commonwealth of Pennsylvania currently offers various incentives for solar projects, usually in the form of grants. Please click here: Pennsylvania State
Alternative Energy Credits
PA also offers residents and businesses that generate electricity from solar power systems the ability to earn and then sell Alternative Energy Credits (AECs). An AEC, otherwise known as a Solar Renewable Energy Credit (SREC), is earned for each 1000 kWh of electricity generated from a qualified solar power system. AECs are purchased by Electric Distribution Companies and Electric Generation Suppliers in order to meet legal obligations under the PA Alternative Energy Portfolio Standards Act of 2004. This Act established that public utilities must broaden their power generation portfolios to include alternative energy sources thereby helping Pennsylvania achieve greater energy independence.
Solar Power Purchase Agreement (SPPA)
A SPPA is a shared arrangement in which one party owns, operates, and maintains a solar photovoltaic (PV) power system and another party agrees to host the system on a building or property it owns. The solar power system owner, typically a group of private citizens who want to invest in a solar power system, enjoys the investment and tax benefits earned from owning the system. The host party enjoys lower electricity costs from purchasing the solar power system's electric output at a rate less than the rate they pay from their local utility company. An SPPA is most often established for non-profit organizations, municipalities, school districts and other government agencies which face a barrier to investing in a solar power system due to the up-front capital costs. An SPPA is a long-term working partnership which enables both parties to share the benefits of renewable energy!
RMK Solar has strategic business partners who specialize in SPPAs for solar PV projects and have access to qualified and interested investors for these kinds of projects.