Live in another state? See all our Solar Incentives by
State
Californians have been long time advocates for solar power. So much so, California has become the nation’s pioneer and leader when it comes to “going solar”. Other states look to California to see the trail that’s been blazed with their California Solar Initiative, a statewide rebate program that’s now over.
Nonetheless, all Californians can take advantage of the 26%
Federal Tax Credit, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.
There may still be other local rebates from your city, county, or utility. Check below!
California Solar PV Rebates & Incentives
Data from DSIRE. Last updated: 03/07/2021
Name | Administrator | Budget | Last Updated | End Date | DSIRE ID | Summary | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SMUD - PV Residential Retrofit Buy-Down | Sacramento Municipal Utility District | 12/10/19 | 03/07/21 | 314 |
SMUD offers an incentive of $300 to residential customers who install grid-connected photovoltaic (PV) systems. All systems must be permitted and installed by B, C-10, or C-46 contractors. The incentive will be adjusted based on expected system performance, which is affected by factors such as inverter efficiency, orientation, tilt and shading. An incentive calculator can be accessed at https://smud.powerclerk.com/. | |||||||||||||||||||||||||||||||||||||||||||||||||
Ukiah Utilities - PV Buydown Program | City of Ukiah | 12/10/19 | 03/07/21 | 344 | The City of Ukiah Electric Department is currently revising this program. Contact the department with any questions at (707)-467-5711. Through Ukiah Utilities’ PV Buydown Program, residential and commercial customers are eligible for a $0.28-per-watt AC rebate on qualifying grid-connected PV systems up to a maximum system size of 1 MW. In keeping with SB1, the incentive level will decrease annually on July 1 over the 10 year life of the program. Rebates are available on a first come, first served basis and are limited to $7,000 per residential installation and $25,000 per commercial installation. | |||||||||||||||||||||||||||||||||||||||||||||||||
Property Tax Exclusion for Solar Energy Systems | California State Board of Equalization | 06/23/20 | 01/01/25 | 558 | Section 73 of the California Revenue and Taxation Code allows a property tax exclusion for certain types of solar energy systems installed between January 1, 1999, and December 31, 2024. This section was amended by AB 1451 in September 2008 to include the construction of an active solar energy system incorporated by an owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. This only applies if the owner-builder did not already receive an exclusion for the same active solar energy system and only if the initial purchaser purchased the new building prior to that building becoming subject to reassessment to the owner-builder. ABX1-15 of 2011 clarified that systems installed through sale-leaseback arrangements or partnership flip structures can benefit from this exclusion. Click here and here for Letters to Assessors from the State Board of Equalization that further explain the impact of ABX1-15.
| |||||||||||||||||||||||||||||||||||||||||||||||||
Business Energy Investment Tax Credit (ITC) | U.S. Internal Revenue Service | 02/24/21 | 03/07/21 | 658 | Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed in December 2020, extended the phase out of this tax credit for certain technologies. The bill also provides a 30% tax credit for offshore wind facilities in inland navigable waters or coastal waters of the United States for which construction commences prior to 2026. The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently in December 2020. The table below shows the value of the investment tax credit for each technology by year. The dates are based on when construction begins.
In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken. | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Personal) | U.S. Internal Revenue Service | 05/16/18 | 03/07/21 | 666 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||||||||
Modified Accelerated Cost-Recovery System (MACRS) | U.S. Internal Revenue Service | 08/21/18 | 03/07/21 | 676 | Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:
In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.
Bonus Depreciation Bonus Depreciation History
The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It 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 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year. | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Corporate) | U.S. Internal Revenue Service | 05/16/18 | 03/07/21 | 727 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Electricity Production Tax Credit (PTC) | U.S. Internal Revenue Service | 01/27/21 | 03/07/21 | 734 | Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed in December 2020, extended the deadline for eligible systems to qualify for this tax credit. Wind projects started in either 2020 or 2021 will qualify for a production tax credit at 60% of the full rate on the electrical output for 10 years. Tax credits for other technologies may be claimed at the full rate. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service for all facilities placed in service. Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Taxpayer Certainty and Disaster Relief Act of 2020. Amount The tax credit amount is $0.015 per kWh in 1993 dollars for some technologies and half of that amount for others. The amount is adjusted for inflation by multiplying the tax credit amount by the inflation adjustment factor for the calendar year in which the sale occurs, rounded to the nearest 0.1 cents. The Internal Revenue Service (IRS) publishes the inflation adjustment factor no later than April 1 each year in the Federal Register. For 2020, the inflation adjustment factor used by the IRS is 1.6687. Earlier legislation introduced a step down of the credit amount for wind, while phasing out the credit for other technologies. Subsequent legislation has pushed back the stepdown for wind and the phase out for other technologies. As such, the credit today includes a 40% step-down in the credit amount for wind, but other technologies can receive the full credit amount. Applying the inflation-adjustment factor for the 2020 calendar year, and the 40% step-down for wind, the production tax credit amount is as follows:
Duration The duration of the credit is 10 years after the date the facility is placed in service. Two exceptions applied to facilities placed in service more than a decade ago:
Investment Tax Credit in Lieu of Claiming the PTC Renewable energy facilities placed in service after 2008 and commencing construction prior to 2018 (or 2020 for wind facilities) may elect to make an irrevocable election to claim the Investment Tax Credit (ITC) in lieu of the PTC. Wind facilities making such an election will have the ITC amount reduced by the same phase-down specified above for facilities commencing construction in 2017, 2018, or 2019. Process for Claiming The credit is claimed by completing Form 8835, "Renewable Electricity Production Credit," and Form 3800, "General Business Credit." For more information, contact IRS Telephone Assistance for Businesses at 1-800-829-4933. Determination of Commencing Construction To claim the PTC, construction on an eligible project must have “commenced construction” prior to January 1, 2015. The IRS has issued guidance on how it will evaluate whether construction has commenced in IRS Notices 2013-29, 2013-60, 2014-46, 2015-25, and 2016-31 (please see the full text of these notices for complete information on determining the commencing of construction). The guidelines establish two methods—a “physical work” test and a 5% safe harbor (see sections below for details)—to determine when construction has begun on a qualified facility. Meeting the criteria of either method is sufficient to demonstrate that construction has commenced. Both methods require that a taxpayer make continuous progress towards completion once construction has begun by meeting the Continuous Construction Test (to satisfy the Physical Work Test) or the Continuous Efforts Test (to satisfy Safe Harbor). If a taxpayer places a facility in service during a calendar year that is no more than four calendar years after the calendar year during which construction of the facility began, the facility will be considered to satisfy the Continuity Safe Harbor Physical Work Test The physical work test provides that a taxpayer may establish the beginning of construction by beginning "physical work of a significant nature.” The physical work test is based on the nature of the work performed rather than the cost of the work; if the work performed is of a significant nature, then “there is no fixed minimum amount of work or monetary or percentage threshold required to satisfy the Physical Work Test” (Notice 2014-46). Notice 2013-29 provides several examples of actions that constitute work of a significant nature, including:
Safe Harbor Safe Harbor with respect to a facility is demonstrated by showing that 5% or more of the total cost of the facility was paid or incurred. | |||||||||||||||||||||||||||||||||||||||||||||||||
Energy-Efficient Mortgages | 08/05/20 | 03/07/21 | 742 |
Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.
Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures.
ENERGY STAR Partnership for Lenders | ||||||||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Grants | U.S. Department of Agriculture | $600 million for FY 2018 | 08/21/18 | 03/07/21 | 917 | Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | ||||||||||||||||||||||||||||||||||||||||||||||||
Office of Indian Energy Policy and Programs - Funding Opportunities | U.S. Department of Energy | 02/26/20 | 03/07/21 | 918 | The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures. DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements. Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance. | |||||||||||||||||||||||||||||||||||||||||||||||||
San Diego County - Green Building Program | County of San Diego | 03/11/16 | 03/07/21 | 1105 | The County of San Diego has a Green Building Incentive Program designed to promote the use of resource efficient construction materials, water conservation and energy efficiency in new and remodeled residential and commercial buildings. As part of the program, for qualifying resource conservation measures, the County will reduce building permit and plan check fees by 7.5% and grant expedited plan checks. To qualify for these conservation incentives, the project must comply with the program requirements for either natural resources conservation, water conservation, or energy conservation | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential Renewable Energy Tax Credit | U.S. Internal Revenue Service | 01/27/21 | 12/31/23 | 1235 | Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed in December 2020, extended the phase out of this tax credit. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below. Solar-electric property
Solar water-heating property
Fuel cell property
Small wind-energy property
Geothermal heat pumps
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Energy Storage The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. History Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008. | |||||||||||||||||||||||||||||||||||||||||||||||||
Burbank Water & Power - Green Building Incentive Program | Rebates | 05/27/20 | 03/07/21 | 1660 | The U.S. Green Building Council is a non-profit organization that promotes the design and construction of buildings that are environmentally responsible, profitable, and healthy places to live and work. The Green Building Council developed the Leadership in Energy and Environmental Design (LEED) Green Building Rating System in order to more accurately provide incentives those using these practices. The LEED Green Building Rating System issues points across five categories to those striving to attain LEED status for new commercial construction or major renovation of commercial buildings, as well as multifamily and mixed-use developments that are five units or greater, or four stories or higher. Rebates provided by Burbank Water & Power correspond to the following point totals and LEED certification levels:
Incentives are on a first come first serve basis. More information can be found on the web site listed above. | |||||||||||||||||||||||||||||||||||||||||||||||||
LADWP - Non-Residential Energy Efficiency Incentive Program | Los Angeles Department of Water and Power | 04/03/19 | 03/07/21 | 1866 | Los Angeles Department of Water and Power offers prescriptive and custom incentives to non-residential customers for the installation of energy saving measures, equipment, or systems that exceed Title 24 or minimum industry standards. Custom incentives are based on estimation software that determines the energy savings for each project. Prior to beginning the project, customers should contact the utility for more information.
| |||||||||||||||||||||||||||||||||||||||||||||||||
Clean Renewable Energy Bonds (CREBs) | U.S. Internal Revenue Service | 08/15/18 | 03/07/21 | 2510 | Note: The Tax Cuts and Jobs Act of 2017 repealed section 54C of the Internal Revenue Code, which authorized the use of New CREBs. IRS Notice 2018-15 announced that the IRS will no longer process applications for or issue allocations of New CREBs. The summary below describes CREBs before they were repealed, and is here for historical purposes only.
Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. The bondholder receives federal tax credits in lieu of a portion of the traditional bond interest, resulting in a lower effective interest rate for the borrower.* The issuer remains responsible for repaying the principal on the bond. The tax credit rate is set daily by the U.S. Treasury Department. Under past allocations, the credit could be taken quarterly on a dollar-for-dollar basis to offset the tax liability of the bondholder. However, under the new CREBs allocation, the credit has been reduced to 70% of what it would have been otherwise. Other important changes are described in IRS Notice 2009-33. | |||||||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Loan Guarantees | U.S. Department of Agriculture | 08/21/18 | 03/07/21 | 2511 | The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | |||||||||||||||||||||||||||||||||||||||||||||||||
City of San Francisco - Solar Energy Incentive Program | San Francisco Public Utilities Commission | $5 million for FY 2018-2019 | 12/10/19 | 03/07/21 | 2888 | The City and County of San Francisco, through the San Francisco Public Utilities Commission (SFPUC), are providing incentives to residents, businesses and non-profits who install photovoltaic (PV) systems on their properties. Systems must be at least one kilowatt (kW) in capacity, and there is no maximum size limit to participate. Different incentive levels are available whether the property is residential, commercial, low-income residential, non-profit, or multi-unit residential. | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Department of Energy - Loan Guarantee Program | U.S. Department of Energy | 08/18/16 | 03/07/21 | 3071 | Note: President Obama and DOE issued new supplemental guidance for Renewable Energy and Efficient Energy (REEE) Projects that adds $500 million of loan guarantee authority, making the total available approximately $4.5 billion. It also released guidance to clarify the types of Distributed Energy Projects it can support under the Title XVII program. The additional loan guarantee authority was officially available as of October 2015. Section 1703 of Title XVII of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program. Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. Loan guarantees are provided in response to open solicitations. The application is a two part process; applicants that meet the specified requirements laid out in Part I receive an invitation to submit a Part II application. The updated supplemental guidance for Renewable Energy Projects and Energy Efficiency Projects includes an application solicitation schedule, with final Part I and Part II application due dates to November 30, 2016 (extended in a Fifth Supplement released June 2016). Up to $3 billion is available in loan guarantees for projects in renewable energy, efficient end-use, and efficient generation, transmission, and distribution technologies (plus an additional amount that may be imputed based on the credit subsidy cost of the loan guarantee authority). See the program website for more details on eligibility and the application process. Section 1703 requires either an appropriation to cover the Credit Subsidy Cost (the expected long term liability to the Federal Government for providing the loan guarantee), or payment of the Credit Subsidy Cost by the borrower. A credit-based interest rate spread will be added to certain loans receiving a 100% loan guarantee from DOE and financing from the Federal Financing Bank. Rates and more information are available here.
| |||||||||||||||||||||||||||||||||||||||||||||||||
Qualified Energy Conservation Bonds (QECBs) | U.S. Internal Revenue Service | 08/22/18 | 03/07/21 | 3098 | Note: The Tax Cuts and Jobs Act (HR 1) of 2017 repealed the use of tax credit bonds effective January 1, 2018. Issuers of QECBs that elected to receive direct payments from the Treasury issued on or before December 31, 2017, consistent with the Internal Revenue Code (Section 54D), will continue to receive direct payments. The summary presented below is for historical purposes.
The Energy Improvement and Extension Act of 2008, enacted in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs. The October 2008 enabling legislation set a limit of $800 million on the volume of energy conservation tax credit bonds that may be issued by state and local governments. The American Recovery and Reinvestment Act of 2009, enacted in February 2009, expanded the allowable bond volume to $3.2 billion. In April 2009, the IRS issued Notice 2009-29 providing interim guidance on how the program will operate and how the bond volume will be allocated. Subsequently, H.R. 2847 enacted in March 2010 introduced an option allowing issuers of QECBs and New CREBs to recoup part of the interest they pay on a qualified bond through a direct subsidy from the Department of Treasury. Guidance from the IRS on this option was issued in April 2010 under Notice 2010-35. | |||||||||||||||||||||||||||||||||||||||||||||||||
Sonoma County - Energy Independence Program | 01/13/16 | 03/07/21 | 3334 | The Federal Housing Financing Agency issued a statement in July 2010 that was critical of PACE programs. Many PACE programs, including Sonoma County's, were temporarily suspended in response to the statement, waiting for further direction from the federal agency. At their July 13 Board meeting the Sonoma County Board of Supervisors elected to re-open this program. Sonoma County's Energy Independence Program gives property owners the option of financing energy efficiency, water efficiency and renewable energy improvements through a voluntary assessment on their property tax bills. The program is similar to others in California authorized by AB 811 of 2008, but was the first county-wide program. Eligible equipment must be permanently attached to existing buildings, new construction does not qualify. The property tax assessments are attached to the property, not the property owner. If the property is sold, the assessment stays with the property. A key Sonoma County Energy Independence Program (SCEIP) enhancement effective July 1, 2011, is the requirement of achieving 10% energy efficiency improvement on the property prior to (or along with) the financing of renewable generation upgrade projects. This approach supports SCEIP’s regional goal to “reduce and produce,” plus strengthens the market position of the SCEIP assessment portfolio. Beginning March 1, 2011, the Sonoma County Energy Independence Program offers rebates for Energy Analyses performed by certified HERS II Raters. Submit your application, utility authorization, final invoice, rating certificate and recommendations report to SCEIP, and SCEIP will pay up to 75% of the total directly to the rater.
Commercial and industrial properties must first have Pacific Gas and Electric perform an energy audit before participating in the program. Energy audits are not required for residential participants, but they are strongly recommended. The sum of all debt associated with the property cannot exceed 100% of the value of the property. Prospective participants should fully review the program website for additional requirements and restrictions. As of January 2016, this program has funded more than $73 million in projects. | ||||||||||||||||||||||||||||||||||||||||||||||||||
California Solar Initiative - Single-Family Affordable Solar Housing (SASH) Program | GRID Alternatives | $108.3 million | 06/04/19 | 12/31/21 | 3673 | Note: AB 217 of 2013 made several changes to this program. Among other changes, the expiration date was extended to December 31, 2021 or whenever funds are exhausted, and the budget was increased. Specifically, the bill added an additional $108 million to be divided between the SASH and MASH programs. A CPUC ruling in January 2015 changed the incentive structure by removing the incentive tiers and creating a single non-declining incentive rate of $3 per watt. The California Solar Initiative (CSI), enacted by SB 1 of 2006, provides financial incentives for installing solar technologies through a variety of smaller sub-programs. Of the $3.2 billion in total funding for the CSI, $216 million has been set aside for programs to help fund photovoltaic (PV) installations on low-income housing. Half of that $216 million is funding the Multi-Family Affordable Solar Housing (MASH) program, and the other half is funding the Single-Family Affordable Solar Housing (SASH) Program. The SASH program is being administered on behalf of the investor-owned utilities by GRID Alternatives. Income-eligible customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E) may participate. In general, the household's total income must be 80% of the area median income (AMI) or less. Before a PV system is installed through the SASH program, all appropriate energy efficiency measures should be pursued. If an applicant's income status qualifies for the Low Income Energy Efficiency (LIEE) program, GRID Alternatives' staff will the assist applicant in enrolling in the LIEE program. If a client does not qualify for the LIEE service, GRID Alternatives' staff will conduct a basic residential energy audit.
| ||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Use Tax Exclusion for Advanced Transportation and Alternative Energy Manufacturing Program | State Treasurer's Office | $100,000,000 per year | 02/18/16 | 01/01/21 | 4054 | SB 71 of 2010 established a sales and use tax exclusion (STE) for eligible projects on property utilized for the design, manufacture, production or assembly of advanced transportation technologies or alternative source (including energy efficiency) products, components, or systems. The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) is administering the program. Eligibility Criteria
Application Evaluation
Program Restrictions
Prior Use
Fees
Those interested in participating in the SB 71 Program should contact the California Alternative Energy and Advanced Transportation Financing Authority.
| ||||||||||||||||||||||||||||||||||||||||||||||||
City of San Francisco - GreenFinanceSF | 10/29/20 | 03/07/21 | 4091 | GreenFinanceSF is a Property Assessed Clean Energy (PACE) financing program for commercial properties. GreenFinance SF uses an "open-market" PACE model in which individual property owners identify their own project lenders and negotiate all the financing terms with them. The City collects loan repayments from the participant through a special tax lien on the property and disburses payment to the project lender. The special tax lean should provide greater security to the lender, who should be able to provide more favorable financing terms to the property owner. The property must be located in the City and County of San Francisco must e current in the payment of all obligations secured to the property including property taxes, assessments and tax liens within the past 3 years. The GreenFinance SF lien will be a senior lien, and the property owner must receive written consent from all lenders with existing liens on the property. The property owner must also have a professional energy and/or water audit conducted on the property, and the improvements being targeted by the financing must be identified as opportunities or recommendations by the auditor. If a renewable energy system is financed, the property owner must also implement energy efficiency measures resulting in a 10% improvement in building energy performance. See program website for additional rules and restrictions. | ||||||||||||||||||||||||||||||||||||||||||||||||||
USDA - High Energy Cost Grant Program | USDA Rural Utilities Service | $10 million (2015 solicitation) | 06/09/16 | 03/07/21 | 4359 |
NOTE: The most recent solicitation for this program closed December 14, 2015. Please check the program website for information on future solicitations.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program. | ||||||||||||||||||||||||||||||||||||||||||||||||
Marin Clean Energy - Feed-In Tariff | Marin Clean Energy | 15 MW of projects | 06/17/15 | 03/07/21 | 4556 | Assembly Bill 117, passed in 2002, allows communities in California to aggregate their load and to procure electricity from their own preferred sources. Under the authority of this law, California’s first community choice aggregator, Marin Clean Energy (MCE), was launched in May of 2010. The Marin Energy Authority comprises each city and town in Marin as well as the communities of Belvedere, Fairfax, Mill Valley, San Anselmo, San Rafael, Sausalito, Tiburon, and the County of Marin. The original legislation mandated that the customers of each supporting community would automatically be enrolled in Marin Clean Energy unless they chose not to participate by opting out.
As shown in the table below, systems with a Peak Energy delivery profile earn the highest per-MWh payments, and prices will decline as more systems sign contracts:
System owners obligated to sign a contract for a 20-year term. Individual projects are limited to 1 MW, and MEA will accept a total of 15 MW under this tariff unless MEA's Board of Directors votes to expand the program. Feed-in tariff participants are not eligible to participate in any net metering option for energy deliveries from the same facility.
| ||||||||||||||||||||||||||||||||||||||||||||||||
City of San Diego - Sustainable Building Expedited Permit Program | City of San Diego Development Services | 05/27/16 | 03/07/21 | 4790 | In 2002, the City of San Diego passed a Resolution R-298001, which amended the Sustainable Building Policy to allow for expedited permitting for sustainable buildings. Sustainable buildings are defined in Policy Number 900-14, and the expedited permitting program is described in Policy Number 600-27. The Sustainable Building Policy is scheduled to be revised every three years. | |||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Auction Mechanism (RAM) | CPUC | 05/17/16 | 03/07/21 | 4979 | Note: This program completed its sixth and final mandated auction in 2015. CPUC Decision 14-11-042 allows the utilities to continue using RAM as a mechanism for meeting a portion of their RPS requirements. Future RAM solicitations will be issued at the discretion of the utilities. Some of the parameters put in place by the CPUC will be lifted, but the essence of the RAM program will remain. Namely, utilities will select projects based on lowest price, and selected projects will be granted standard non-negotiable contracts. See the utility websites below for more information. The Renewable Auction Mechanism (RAM) was approved by the California Public Utilities Commission (CPUC) in December 2010 with a goal of installing 1,500 megawatts (MW) of new distributed generation. RAM was designed to streamline the procurement process for distributed generation projects between 3 MW and 20 MW* in capacity while ensuring the lowest costs for ratepayers. The RAM is a reverse auction which was originally scheduled to occur twice annually for each of the three investor-owned utilities in the state. Each utility was responsible for procuring their proportionate share of the 1,500 MW total based on their relative electricity sales. Each bid is screened by the utility for viability and then selected based on price, starting with the least cost project, until the utility reaches their MW limit for that auction. Any capacity remaining at the end of the auction period was added to the next auction. Winning bids are given a standard contract from the utility. The CPUC can then approve executed contracts through a Tier 2 advice letter. The sixth and final RAM auction closed in August 2015. The utilities are no longer required to conduct new RAM auctions, but are authorized to voluntarily use the mechanism to meet their general renewable energy procurement targets. See the following links for more information about the utilities' renewable energy procurement options: * CPUC Decision 14-11-042 lifted the size restrictions (3 MW - 20 MW) for future utility-developed RAM solicitations. For future solicitations, the utilities may establish project size requirements based on their specific procurement needs at the time of the solicitation. | |||||||||||||||||||||||||||||||||||||||||||||||||
Energy Efficiency Financing for Public Sector Projects | California Energy Commission | Over $20 million | 05/25/16 | 03/07/21 | 5131 | Cities, counties, public care institutions, public hospitals, public schools and colleges, and special districts in California can apply for low-interest loans from the California Energy Commission for energy efficiency projects in their buildings and facilities. Residential and commercial projects and non-profit institutions are not eligible for these funds. Entities eligible for 0% loans include:
Entities eligible for 1% loans include:
There is no minimum loan amount, but the maximum loan amount per application is $3 million. The loan term cannot exceed the useful life of loan-funded equipment, and will be determined on a case-by-case basis based on the estimated annual energy cost savings from the projects. The exact loan term will be determined such that the energy savings will cover the loan payments. For a project to be considered, it must have proven energy savings and meet the eligibility requirements of the loan program. Examples of projects include:
Full details and application packets are available at the web site above. | ||||||||||||||||||||||||||||||||||||||||||||||||
Los Angeles County - Commercial PACE | 01/13/16 | 03/07/21 | 5180 | Businesses in Los Angeles County may be eligible for the county's Property Assessed Clean Energy (PACE) program. PACE programs allow businesses to finance energy and water efficiency projects which are repaid through a special assessment on the business's property taxes. The property must be located within Los Angeles County, and within the boundaries of a city that has adopted a resolution to join the County-wide PACE district. As of January 2016, 85 of 88 cities in Los Angeles County have passed resolutions opting into the LA County PACE Program. The technologies listed above are examples of eligible improvements, but other technologies that are permanently affixed to the property, and have proven energy or water savings, may be eligible on a case-by-case basis. The LA County Commercial PACE Program utilizes an “open market” approach, where property owners may negotiate project-specific terms with the PACE investor of their choice, including banks that holds the first mortgages. More information is available on the website above. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Western Riverside Council of Governments - Home Energy Renovation Opportunity (HERO) Financing Program | 10/29/20 | 03/07/21 | 5181 | Western Riverside Council of Governments (WRCOG) is offering homeowners in WRCOG participating jurisdictions an opportunity to finance energy and water efficiency projects in their homes. The Home Energy Renovation Opportunity (HERO) Program is a Property Assessed Clean Energy (PACE) financing program. PACE programs allow homeowners to finance energy improvements, and to repay the financing through special assessments on their property taxes. In most cases the property tax assessment will stay with the property if it is sold, though the buyer's lender may impose restrictions on the transfer. A wide variety of energy and water efficiency products permanently affixed to the property can qualify for this program. Light bulbs, appliances, and other products not permanently affixed to the property are ineligible for this program. Only contractors registered with the program or a property owner who has signed a Self-Install Agreement may install the financed equipment. See the web site above for complete details. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Western Riverside Council of Governments - Large Commercial PACE | 10/29/20 | 03/07/21 | 5182 | Western Riverside Council of Governments (WRCOG) is offering business owners in WRCOG participating jurisdictions an opportunity to finance energy and water efficiency projects for their commercial properties. The HERO Commercial Program is a Property Assessed Clean Energy (PACE) financing program. PACE programs allow businesses to finance energy improvements, and to repay the financing through special assessments on their property taxes. | ||||||||||||||||||||||||||||||||||||||||||||||||||
CaliforniaFIRST | Renewable Funding | 03/11/16 | 03/07/21 | 5309 | The CaliforniaFIRST Program is a Property Assessed Clean Energy (PACE) financing program for non-residential properties. PACE programs allow property owners to finance the installation of energy and water improvements on their buildings and to pay the amount back through their property taxes. CaliforniaFIRST is available to commercial, industrial, agricultural, and multi-family (over 5 units) buildings in one of the 120 participating cities or the unincorporated parts of the 14 participating counties. Click here to see all the local governments that are participating. Eligibility is generally determined by the property records and value, and the property must meet general underwriting criteria established by the California Statewide Communities Development Authority (CSCDA). The property must be current in payment for all obligations secured by the property, including mortgages, property taxes, and assessment and tax liens, for the past 3 years. There cannot be any notices of default or foreclosure filed against the property within the last 5 years. The current property owner also cannot have a record of bankruptcy in the past 7 years. Lenders may request additional information and have additional criteria. More information and a complete list of the currently approved energy and water efficiency technologies are available at the web site above. | |||||||||||||||||||||||||||||||||||||||||||||||||
Partial Sales and Use Tax Exemption for Agricultural Solar Power Facilities | California State Board of Equalization | 07/27/20 | 03/07/21 | 5351 | California provides a partial exemption of the state's sales and use tax for farm equipment and machinery. The exemption only applies to taxes levied by the State, and not sales and use taxes levied by local governments. Further, the exemption does not apply to the taxes imposed or administered pursuant to sections 6051.2 and 6201.2 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use Tax Law, the Transactions and Use Tax Law, or section 35 of article XIII of the California Constitution. The California State Board of Equalization issued a Special Notice in November 2012, clarifying that photovoltaic (PV) systems that are used to provide electricity to farm equipment and machinery may qualify for the partial exemption. For any farm equipment or machinery to qualify for the partial exemption, it must be used primarily in producing and harvesting agricultural products. "Primarily" means 50% or more of the time. In the case of PV, according to the Special Notice, 50% or more of the electricity produced by the system must be used to provide power to farm equipment and machinery. The system does not need to be directly connected to the equipment to qualify. The system can be connected to the local electrical grid and used to offset the farm's electrical use through a net metering arrangement with the local utility. Applicants will need to demonstrate, however, that the farm equipment annually consumes at least half of the amount of electricity annually produced by the PV system. Leased equipment also qualifies for the partial exemption. For more information, including a sample Partial Exemption Certificate, can be found on the web site above.
| |||||||||||||||||||||||||||||||||||||||||||||||||
California Enterprise Development Authority (Figtree PACE) - Statewide PACE Program | FIGTREE Energy Financing | 01/13/16 | 03/07/21 | 5378 | FIGTREE Energy Financing is administering a Property Assessed Clean Energy (PACE) financing program in a number of California cities and counties through a partnership with the Pacific Housing & Finance Agency (PHFA) and the California Enterprise Development Authority (CEDA). PACE programs allow property owners to borrow money for energy improvement projects which are repaid through their property taxes. A number of energy efficiency and renewable energy technologies can be financed through FIGTREE's PACE program. Residential and commercial properties which meet the program's criteria, and are located in one of the participating cities or counties are eligible. Full details of the program and a list of the participating cities and counties are available at the web site above. | |||||||||||||||||||||||||||||||||||||||||||||||||
FHA PowerSaver Loan Program | 03/07/16 | 03/07/21 | 5631 | Federal Housing Administration (FHA) through its PowerSaver loan program offers three financing options for homeowners to make energy efficiency and renewable energy upgrades in their residences. For all three PowerSaver products, borrowers must select from a list of approved PowerSaver lenders. Please check the HUD website to find a list of participating FHA approved lender for the program. PowerSaver products are not currently offered in all states, so all potential applicants are encouraged to first check the program website to ensure product availability in their location. Eligibility Homeowners must have following requirements to be eligible for the program:
Eligible Measures Eligible home energy upgrades include, but are not necessarily limited to, the following:
PowerSaver Home Energy Upgrade—Up to $7,500 This unsecured consumer loan is intended for smaller projects (e.g., insulation, air and duct sealing, water heating, replacing heating and cooling equipment, etc.). It does not require a home appraisal or lien on the property. Single-family homeowners may qualify for the loan if they have manageable debt and a credit score of 660 or higher. Interest rates vary, but typically range from 4.99% to 7.75%. PowerSaver participating lenders, markets, and contact information is available here. PowerSaver Second Mortgage (Title I)—Up to $25,000 This Title I loan is intended for financing larger retrofit projects, including energy efficiency, PV, solar hot water, geothermal, or other renewable energy projects. A home appraisal or equity is generally not required, but PowerSaver lenders may request it if required by their investor. Borrowers cannot currently have an existing home equity loan, a second lien, or second mortgage to qualify for this product. Interest rates vary but typically range from 4.99% to 9.99%, and the maximum loan term is 20 years. PowerSaver Title I participating lenders, markets, and contact information is available here. PowerSaver Energy Rehab (203(k))—First mortgage up to FHA loan limits This 203(k) loan is for home purchase or refinance, targeting either home buyers wishing to combine home improvements with a home purchases or to homeowners wishing to include home improvements when refinancing an existing mortgage. It is FHA-insured up to 100% for a home purchase or refinance, plus the cost of a home improvement project. Current loan limits for a single-unit property vary by area from $217,500 to $625,000 (higher amounts are permitted for two-, three- and four-unit properties); specific loan limits for an area can be found at this website. In order to qualify as a 203(k) PowerSaver loan, at least $3,500 of the home improvements must consist of eligible PowerSaver measures. PowerSaver 203(k) participating lenders, markets, and contact information is available here. The two types of PowerSaver 203(k) loans are Standard and Streamlined. Standard 203(k) loans are for major improvements, where a home improvement project costs at least $5,000 and includes $3,500 in energy upgrades. The Streamlined 203(k) loans are for minor home improvements, where the home improvement project cost must not exceed $35,000. A HUD consultant is only required for oversight of home improvements for Standard 203(k) loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Market Adjusting Tariff (ReMAT) | 03/16/18 | 03/07/21 | 5665 | Note: In a December 2017 letter to the IOUs the Executive Director of the CPUC declared that the U.S. District Court had declared that the Re-MAT program violated the Supremacy Clause of the U.S. Constitution by placing numerical limits on utility obligations to purchase power from QFs, and establishing a purchase price different than the utility's avoided cost. The letter instructed the IOUs to not accept or approve new Re-MAT contracts pending further CPUC action. All investor-owned utilities and publicly-owned utilities with 75,000 or more customers must make a standard Renewable Market Adjusting Tariff (ReMAT) available to their customers. As the ReMAT is meant to help the utilities meet California's renewable portfolio standard (RPS), all green attributes associated with the energy, including renewable energy credits (RECs), transfer to the utility with the sale. Any customer-generator who sells power to the utility under this tariff may not participate in other state incentive programs. The tariffs will be available until the combined statewide cumulative capacity of eligible generation installed equals 750 megawatts (MW) for the general ReMAT program, and 250 MW for the bioenergy ReMAT program. Each utility will be responsible for a portion of those cumulative totals based on their proportionate sales. The CPUC has regulatory authority over the investor-owned utilities, but not publicly-owned utilities. Therefore, the rules adopted by the CPUC do not apply to the publicly-owned utilities. Instead, the governing board of each publicly-owned utility is wholly responsible for developing their tariffs within the parameters established by the legislature in CA Public Utilities Code § 399.32 (formerly CA Public Utilities Code § 387.6). The collective share of the 750 MW program capacity established by the legislature for which the investor-owned utilities are responsible is 493.6 MW. The remaining 256.4 MW is to be divided between the publicly-owned utilities. Investor-owned utilities are solely responsible for the 250 MW bioenergy program. Investor-Owned Utilities (General ReMAT program) The California ReMAT allows eligible customer-generators to enter into 10-, 15- or 20-year standard contracts with their utilities to sell the electricity produced by small renewable energy systems (up to 3 megawatts (MW)). The CPUC has separated the technologies eligible to participate in the feed-in tariff into three project type categories: Baseload (bioenergy and geothermal), As-Available Peaking (solar), and As-Available Non-Peaking (wind and hydro). The ReMAT starting price is based on the weighted average of the three investor-owned utilities highest executed contract resulting from the Renewable Auction Mechanism (RAM) auction held in November 2011. Based on the results of that auction the starting price was $89.23 per megawatt-hour (MWh). As of July 2016, the current price for Baseload and As-Available Non-Peaking resources remains $89.23 per MWh; the current price for As-Available Peaking resources is $61.23 per MWh. The CPUC built in price adjustment mechanisms to allow the program to adapt to changing market conditions. Interested generators must start by submitting a program participation request with the utility. The utility will establish a queue on a first-come first-served basis for each product type and will extend a ReMAT price offer to the applicants. The applicant can either accept or reject the contract. The price adjustments are only triggered if at least five projects with different developers for a certain product type apply. If no projects accept the Re-MAT, or less than 50% of the initial starting capacity for that project type accept the Re-MAT after its first two months, then the price will be escalated by $4 per MWh for the third and fourth months. The price will continue to escalate in subsequent two-month blocks until the subscription capacity is equal to 50% or more of the initial starting capacity for that project type. Similarly, if the program demonstrates excessive interest, the Re-MAT will be adjusted downward every two months. Investor-Owned Utilities (Bioenergy ReMAT program) SB 1122 of 2012 requires the investor-owned utilities to operate a separate ReMAT program for a cumulative total of 250 MW of bioenergy projects, separate from the wider 750 MW program. The legislation subdivided the 250 MW limit across different bioenergy sources:
The CPUC, in consultation with the California Energy Commission (CEC), the State Air Resources Board, the Department of Forestry and Fire Protection, the Department of Food and Agriculture, and the Department of Resources Recycling and Recovery, may reallocate the 250 MW requirement among the categories if they determine the allocations referenced above are not appropriate. Publicly-Owned Utilities All publicly-owned utilities with 75,000 or more customers are required to develop feed-in tariffs by July 1, 2013. In determining the rate to pay under the tariffs, publicly-owned utilities must consider:
CA Public Utilities Code § 399.32 provides more guidance for publicly-owned utilities in developing their tariffs, including conditions in which the utility may limit the program. Customers of publicly-owned utilities with 75,000 or more customers should contact their utility for more information. Customers of one of the investor-owned utilities can contact the appropriate program administrator for more information: | ||||||||||||||||||||||||||||||||||||||||||||||||||
LADWP - Feed-in Tariff (FiT) Program | 100 MW of Projects | 02/02/17 | 03/07/21 | 5685 | Note: LADWP accepted applications for the fifth allocation of the 100 MW FiT Set Pricing Program in March 2015. This program is the first component of a 150 megawatt (MW) FiT Program, and is designed to support 100 MW. The full 100 MW of contracts will be offered in five allocations occurring every six months. A plan for the additional 50 MW program is still in development. See the website above for more information. LADWP is providing a Feed-in Tariff (FiT) program to support the development of solar photovoltaic (PV) in its territory. Project must be registered as RPS-compliant with the California Energy Commission to be participate. The full 100 MW of contracts awarded through this program will be offered in five allocations occurring every six months. For each allocation, 4 MW of capacity will be reserved for small projects between 30 kW and 150 kW. If the small projects reach their reserved capacity limit before the total reserved capacity is met for a Tier, the remaining small projects will qualify under the total reserved capacity allocation until that category is exhausted. During the first five business days of each application period, all submitted applications will be prioritized on the FiT Reservation List by lottery. Applications received after the first five business days will prioritized in the order they are received. The amount LADWP will pay for each kilowatt-hour (kWh) produced will be a product of the Base Price of Energy (BPE) multiplied by the appropriate Time-of-Delivery (TOD) Multiplier. The BPE is scheduled to decline as each 20 MW allocation is subscribed. The TOD multiplier varies by time of day and time of year with the highest multiplier being available between 1:00 PM and 5:00 PM during June through September. The full schedule for BPE prices and TOD multipliers can be seen in the tables below. Base Price of Energy
Time of Delivery Multiplier
Program participants must pay application fees, interconnection study fees, development security deposits, and interconnection fees. These fees and additional program requirements can be found at the web site above.
| |||||||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae Green Financing – Loan Program | 05/08/20 | 03/07/21 | 5780 | NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender: https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing. Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250. Please visit the Fannie Mae Green Financing website for more information and detailed program requirements. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment | California Department of Tax and Fee Administration | 07/27/20 | 07/01/30 | 22048 | AB 389 of 2017 created an exemption from the sales and use tax for "qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, or storage and distribution, of electric power." The exemption also applies to contractors who purchase the equipment in the service of a contract with a qualified person. "Qualified person" is defined in the statutes. The exemption does not apply to the generation or production of electricity from nuclear energy, large hydro, or fossil fuels, except when used in cogeneration. However, the exemption does apply to the storage and distribution of electric power from any source. The exemption also applies to "special purpose buildings and foundations used as an integral part of the generation or production or storage and distribution of electric power." |