Incentives and Tax CreditsIncentives and Tax Credits

• Federal, state, and private incentives and Federal, state, and private incentives and tax credits exist to encourage the use of tax credits exist to encourage the use of renewable energies.renewable energies.

• California is the leading state for incentivesCalifornia is the leading state for incentives

• Incentives and tax credits are based on: Incentives and tax credits are based on:

– Type of renewable energy technologyType of renewable energy technology– The amount of electricity produced The amount of electricity produced – Size of the system Size of the system

www.DSIREUSA.orgwww.DSIREUSA.org

Incentives in VermontIncentives in Vermont

• Mainstay Energy is a private company, in Mainstay Energy is a private company, in New England, offering renewable energy New England, offering renewable energy system owners financial incentives. system owners financial incentives.

• Eligible technologies:Eligible technologies:– solar PVsolar PV– windwind– biomass biomass – geothermal electricgeothermal electric– hydroelectric  hydroelectric 

Pricing Example: 2kW Pricing Example: 2kW SystemSystem

A 2 kW system can produce up to 3,000 kWh per A 2 kW system can produce up to 3,000 kWh per year:year:

• Cost before incentives $16,000Cost before incentives $16,000

• Incentives ($9,450)Incentives ($9,450)

• Net cost $6,550Net cost $6,550

• Annual utility bill savings $214Annual utility bill savings $214

• Decrease in loan payments $456/yr.Decrease in loan payments $456/yr.

• Annual savings $658Annual savings $658

Surplus Energy can be fed back to the Surplus Energy can be fed back to the grid in two main ways:grid in two main ways:

Usually occurs with large scale energy Usually occurs with large scale energy producers. producers.

Eg. commercial, institutional, and Eg. commercial, institutional, and industrial buildingsindustrial buildings

• Wholesale priceWholesale price

• Net meteringNet metering

The Big ThreeThe Big ThreeUSA, Japan & GermanyUSA, Japan & Germany

Japan and the USA are the two biggest exporters of PV cells and Japan and the USA are the two biggest exporters of PV cells and modules.modules.

Around 1.2 million solar thermal systems have been installed in the United States. 80% residential users.

Germany is the leading PV market in 2003. About 20,000 solar Germany is the leading PV market in 2003. About 20,000 solar electricity systems were installed, which yielded almost twice the electricity systems were installed, which yielded almost twice the volume installed in the previous yearvolume installed in the previous year

Over 90% of solar PV installations are in grid-tied applications in Over 90% of solar PV installations are in grid-tied applications in GermanyGermany

(www.solarbuzz.com)

Japanese PV industry is the worlds Japanese PV industry is the worlds largest and is growing rapidlylargest and is growing rapidly

Around 50% of the world's solar cell Around 50% of the world's solar cell production is manufactured in Japan.production is manufactured in Japan.

For those Who Need For those Who Need ConvincingConvincing

• Roof tile technology modules Roof tile technology modules

• Rolls (Thin Film)Rolls (Thin Film)

• Hazardous wastes are not a large Hazardous wastes are not a large threatthreat

• Silicon not intrinsically harmfulSilicon not intrinsically harmful

• With anticipated With anticipated technology:technology:– Multicrystalline 2-4 Multicrystalline 2-4

yearsyears– Thin Film 1-3 yearsThin Film 1-3 years

• 87%-97% of the 87%-97% of the energy input and energy input and output in solar output in solar energy is non-energy is non-pollutingpolluting– Production and Production and

transportation transportation taken into accounttaken into account

• If PV modules of 10% average efficiency If PV modules of 10% average efficiency on .1% of the Earth’s surface they would on .1% of the Earth’s surface they would supply enough electricity for the world’s supply enough electricity for the world’s total energy loadtotal energy load

• Start up cost high but running cost is low Start up cost high but running cost is low in comparison to other energy systems in comparison to other energy systems

• After installation PV arrays require no fuel After installation PV arrays require no fuel

• PV arrays have little or no moving partsPV arrays have little or no moving parts

• Require far less maintenance than other Require far less maintenance than other renewable energy systemsrenewable energy systems