Interconnection Agreements

Many electrical companies, especially cooperatives, require interconnection agreements prior to installing solar or wind energy systems. These agreements are only necessary when solar or wind systems are interconnected to the utility grid. An interconnection agreement is simply a contract between the solar or wind system’s owner and their utility company. These agreements specify the terms and conditions of connecting an outside system to the utility grid. It’s best to involve the utility company as early as possible. Being as there are no national standards, each utility company has its own conditions. Some agreements require special meters, inspections throughout the installation, liability insurance, fees, etc. Earth, Wind, and Solar Systems can help you obtain and adhere to all the conditions of an interconnection agreement.

Federal Energy Efficiency Tax Credits Simplified

Wouldn’t it be great if the federal government rewarded you for doing the “right” thing? The American Recovery and Reinvestment Act is doing just that. Federal tax payers are allowed sizable tax credits for becoming more energy efficient and/or installing alternative energy systems. These tax credits actually reduce your income taxes dollar-for-dollar; whereas tax deductions only reduce a percentage of the tax owed.

Prior to Congress changing the law, tax credits were limited to 10% of expenses up to $500 for energy efficient home modifications, and some products had individual prices caps. (Example: $200 for energy efficient windows). Now the caps are gone and the tax credit has tripled! Under the new law, you are allowed a tax credit of 30% of your energy efficiency expenses up to $1500 incurred in 2009 and 2010 combined.

The $1500 tax credit can only be used for energy efficient improvements on your primary residence. Energy efficient windows, skylights, central air conditioners, water heaters, exterior doors, insulation, and pigmented metal roofs are all examples of qualifying improvements. A product’s manufacturer should be able to tell you if their product is eligible for the tax credit.

Here is how the credit works. If you spend $4000 on energy efficient windows in your home, you claim a $1200 tax credit on your 2009 tax return ($4000 x 30% = $1200). Being as you have not met the $1500, you can deduct $300 more in 2010 as long as you make more improvements. Let’s say you spend $5000 on a new air conditioner in 2010, you can only deduct $300 and NOT the entire 30%. You cannot deduct the 30% for the air conditioner because it will exceed the $1500 cap for expenses in 2009 and 2010.

In addition to the energy efficient tax credit, there is a tax credit for those who install residential renewable energy systems like solar water heaters, wind turbines, and solar electric systems. There is NOT a cap on the amount you can receive. You are allowed a tax credit of 30% of your total costs. (Example: $20,000 for a solar electric system x 30% = $6,000 tax credit). There is a catch. With many utility companies offering incentives for customers to install solar electric system, you have to deduct the incentive/rebate from your  cost. (Example: $20,000 system – $5000 utility rebate = $15,000 total system cost.  $15,000 x 30% = $4,500 tax credit NOT $6,000.)

PLEASE NOTE: The information in this article is intended to be current as of June 2009. NO warranty or guarantee of any kind that it is correct, complete, or wholly up to date. This article is to provide general guidance. You should not rely on this article as legal advice and should not act based on its information. Please consult a tax professional.

No Cost Energy Efficiency

Everyone is looking for ways to reduce their budget. We’ve all downgraded our cell phone plans. We’ve subscribed to a less expensive television package. We’re even using coupons and purchasing store brands. It seems like the more we try to cut our budget; the more our utility bill rises. Earth, Wind and Solar Systems is offering a few energy efficient suggestions that will only cost you a little time and elbow grease. These suggestions will not only lower your utility bill, but they will make your home a little “greener”.

1. Turn off EVERYTHING that is not in use. Sounds simple, but most people don’t. If you are not in the room, turn off the lights. One 75 watt bulb left on for two hours for a week will use a little over 1kilowatt per week. A 50” ceiling fan left on high for 6 hours a day for a week uses about 4 kilowatts per week. This rule applies to computers and monitors as well. A laptop computer left on continuously for one month will use 7.5 kilowatts.

 2. Let the sun shine in-sometimes. When it’s warm, block the sun’s heat by keeping blinds and curtains closed on the south, east, and west windows. This will reduce the temperature and give your air conditioner a much needed break.

The opposite applies for cooler times of the year. You’ll want to open all window coverings to let the sun shine in to warm up the room. It’s also important to make sure your windows are clean to allow as much sun light in as possible.

3. Air-dry dishes. Turn off your dishwasher’s heat drying cycle and allow the dishes to air dry. If there is no air dry setting, turn your dishwasher off after the final rinse and open the door. Air drying dishes reduces your dishwasher’s electrical usage by 50%.

4. Unplug cell phone chargers. There are approximately 190 million cell phones in the United States. One of those chargers alone only uses 1 watt, but collectively they could generate 190 megawatts a day-enough to power 100,000 homes.

5. Keep your air conditioner maintained. Not only do you need to replace the filter monthly, but you need to keep the coils clean. For the inside unit, simply remove the grill, remove the filter, and vacuum the dust and dirt from the coils. For the outside unit, remove the back grill and vacuum the coils. You should also clean your refrigerator’s and freezer’s coils at least once a year.

6. Don’t heat/cool vacant rooms. Close vents to rooms that are rarely ever used. There is no need to heat and cool the spare bed room if no one is using it. When the room needs to be used, just open the vent.

 7. Adjust your thermostat. In the summer, your thermostat should be set on 78 or higher while you are home, and set to 82 or higher while you are away. In the winter, adjust your thermostat to 70 or below while you are home, and set at 62 or below while you are away.

8. Wash in cold water. There are detergents formulated for cold water washing. One load of laundry washed in warm waters uses approximately 4 kilowatt hours. 4 kilowatt hours x 5 loads of laundry per week x 4 weeks = 80kilowatt hours saved in one month just by washing in cold water.

 9. Adjust your water heater’s temperature. Approximately 12% of your utility bill is from hot water usage. Turn your water heater down to the warm (120^o) setting. Not only will you save energy, but you’ll avoid burning your hands.

We hope you find these suggestions easy, practical, and doable. After all, just talking about energy efficiency doesn’t make you energy efficient. We hope that you are on your way to a reduced electrical bill and a “greener” home.

 

 

Solar….What’s all the “buzz” about?

The environment has moved to the forefront of the county’s priority list and everyone is jumping on the bandwagon. There are so many options; we don’t know where to start. Everyone wants to do something, but it’s so overwhelming many throw their hands up in defeat. Does doing the right thing have to be so hard?
According to John Allen, of Earth, Wind and Solar Systems in Hamilton, TX, “solar is an option that everyone is currently using whether they realize it or not.” Solar energy is used to power calculators, traffic signals, weather stations, and even satellites in space. Solar panels, as small as a computer microchip or as large as an elephant, simply turn the sun’s rays into energy we can actually use.
When asked why solar is so great, Mr. Allen began ringing its praises. “Solar is the cleanest power generating option we have today. Solar power produces absolutely NO pollution, greenhouse gases (CO2) or noise.” Mr. Allen went on to state that solar is dependable and virtually maintenance free. Solar panels are made to withstand 125 mph winds, 1 inch hail, and temperatures ranging from -13 to 122 degrees Fahrenheit.
Solar power can actually eliminate power surges, black outs and brown outs. By generating a portion of your own power with a solar system, you reduce the amount of power that the power company needs to generate. During peak usage, some power companies are forced to reduce the load on their systems. This is achieved through black outs and brown outs. Many only last a few short minutes but are inconvenient to say the least. Solar powered systems allow you to generate your own power that can be used immediately therefore preventing your power supply from ever being interrupted.
John Allen, of Earth, Wind and Solar Systems, continued to explain that solar power does not require a customer to drop their utility company although the option is available. Most of Earth, Wind, and Solar Systems’ customers continue to stay “tied into the grid” and only generate a portion of their power, called partial loading. A partial system allows someone to generate a certain amount of power each day. The customer then decides what to do with that power. It can be saved with battery storage or sent back to the power company. Mr. Allen went on to say that “partial loading is great because is allows a customer to customize their own system and expand it in the future as technology progresses.”
Cost seems to be the biggest obstacle to solar power, but the federal government and local electrical providers are helping to ease the pain. The federal government is offering a 30% personal income tax deduction for anyone who installs a solar powered system. Many electrical providers are offering rebates and other incentives for their customers as well.
Solar may not be the answer to our environmental crisis, but it’s certainly a step in the right direction. If everyone were to take just one step towards a cleaner Earth, think what an impact that would have on future generations. We don’t have the ability to turn back the hands of time, but we do have complete control over our future. Don’t just think about getting green: do something to become green.