Cherrytree Group LLC Blog

An interesting transactional focus for year-end which could create some much needed impetus in the renewable energy arena is the expiration of the 1603 Treasury Grant, and the solar depreciation acceleration for 2011, which expire on December 31, 2011. The possible expiration of these valuable incentives should spur, in particular, increased activity in solar installations in order to meet the spending parameters of the grant by the end of December 2011.

An experienced consultant can assist in the 1603 grant process and in tax incentive deals generally. Consultants are also able to piece together financing sources and partners in the solar development marketplace that can be strategically helpful to clients needing to take advantage of tax credit for solar installations.
 
Cherrytree is an innovative real estate and business consulting company that advises business and real estate owners, developers, property managers, and landlords.  

Our services include the representation of clients in the renewable energy area, particularly solar installations and tax credits as well as providing sophisticated value added services to green development projects, i.e. developments that utilize energy efficient development incentives.

For information, assistance or questions regarding the 1603 Tax Credit, Solar Energy Credits, Brownfields Tax Credits or other Commercial Real Estate transactions, contact the Cherrytree Group.

“Sophistication, Value and Follow-Through”

...by Warren Kirshenbaum

The pilot program of Solarize Massachusetts will come to Scituate this month, as part of the statewide initiative to bring solar energy into the lives, homes, and businesses of South Shore residents.

Chosen as one of four communities throughout Massachusetts to participate, Scituate will host numerous presentations on the solar initiatives available to residents with the hopes that the coastal community will become greener than ever.

“We first started The Commonwealth Solar Rebate Program a number of years ago, and we’ve seen impressive numbers in terms of the number of solar systems installed in Massachusetts homes and businesses since then,” said Kate Plourd, the press representative for Mass CEC.

Scituate opted into the program early this year and was chosen at random to be the pilot town for this region.
Plourd hopes that the program’s success will dictate how else to deploy solar initiatives in other communities throughout Massachusetts, bringing more and more residents and businesses on board with the cleaner, greener, energy.

There has been significant growth of solar power in Massachusetts. This program is intended to educate homeowners and business owners about the ease of installing a solar system and the  financial benefits, both in utility bills and tax credits.

As part of the program, Scituate hosted a “Solar 101” meeting to discuss solar rebates, installation, and renewable energy tax credits.

There are three basic kinds of rebates available to locals – the Commonwealth Solar Rebate Program, the state tax credit, and the federal tax credit.

“Solarize Scituate” isn’t the only clean-energy initiative the town has its hands on right now.

With the soon-to-be-implemented Stretch Code mandates, which require more stringent, energy-efficient guidelines for new construction; a wind turbine to be installed in the fall; and with a large solar array being placed on the town’s capped landfill, Scituate will be relying on clean energy in no time.

“Between [all] those things … things are looking very green around Scituate,” she said.

Original article By Jessica Bartlett-Boston.com

...by Warren Kirshenbaum

The top state energy official in Massachusetts marked Earth Day this week by announcing a new solar power initiative. The pilot program is aimed at bringing the power of the sun to the masses.

A grassroots marketing effort will attempt to sell solar power house by house and business by business and through volume discount pricing attempting to overcome a chief drawback, the high cost of installing solar power systems. Richard Sullivan, Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs says the program called “Solarize Massachusetts” introduces a new business model for small scale solar projects for homes and businesses.

It is a way to aggregate and drive down the cost of installation.

Proponents of the program hope it will take solar energy in Massachusetts beyond the early adopters and reduce the need for substantial government rebates for solar. Sullivan says Massachusetts has one of the most ambitious clean energy programs in the country, but 80 percent of the roughly 22 billion dollars spent on energy annually in Massachusetts goes out of the state, most of it out of the country.

Since 2006, incentive programs have helped increase solar power by 20 fold in Massachusetts. The state has 45 megawatts of solar power installed and another 40 megawatts under contract for installation. By statute, 250 megawatts of solar power is to be installed by 2017.

The effort to increase adoption of solar power will begin this year in four pilot communities Hatfield, Harvard, Scituate and Winchester. These were selected at random from geographic regions and each meets certain criteria under the state's Green Communities Program.

The Massachusetts Clean Energy Center, partnering with the state to run the pilot program, is seeking bids from companies willing to provide homeowners and businesses with a turnkey solar power system on a tiered price schedule that lowers the costs for multiple installations. Existing state and federal renewable energy credits would also be available for purchasing the solar power systems.

The director for the Massachusetts Clean Energy Center says funding is available for up to 400 projects.

Funding for the solarization pilot project comes from a clean energy surcharge on Massachusetts utility bills and from the sale of renewable energy credits.

Original news story can be seen and heard WAMC Northeast Public Radio - Paul Tuthill

...by Warren Kirshenbaum

California Governor signs 33% renewable energy standard into law; Iowa approves solar, wind tax credits; CO passes hydro bill; NY announces fuel cell incentives; Oregon mandates 5% biodiesel.

California Governor Jerry Brown today signed into law a bill that raises the bar on the state's renewable energy standard (RES).

The bill requires the state's pubicly-owned utilities to produce or purchase 33% renewable energy by 2020. Previously, the mandate was 20% by 2010.

This new RES is the most ambitious in the US by far. It was signed into law today at the opening of a new SunPower/Flextronics solar manufacturing facility in California. The facility is expected to create more than 100 renewable energy jobs.  

Iowa Senate Approves Solar, Wind Tax Credits

Solar and wind energy tax credits passed through the Iowa Senate this month. The credits equal 30% of the cost of construction or installation, subject to a maximum credit of $15,000 for commercial or agricultural construction.
If signed into law, the tax credits would be refundable or alternatively applied against tax liabilities for the following tax year. They will also be retroactive to Jan. 1.

According to a recent American Wind Energy Association report, Iowa now leads the US in wind power production. The state produces roughly 15% of its electricity with windpower, up from 7% in 2008. 

Colorado Passes Bipartisan Hydro Bill
 
The Colorado House by a 65-0 vote passed an amended version of a hydroelectric power bill (HB1083), which now moves to Gov. John Hickenlooper's desk awaiting his signature to become law.

It passed unanimously through two committee hearings, two votes in the House and a vote in the Senate - more than 180 votes cast, and not one in opposition. The bill adds hydroelectric and pumped-hydro operations to the list of new energy technologies that the Public Utilities Commission can consider.

The bill is seen as a first step in bringing an $800 million pumped hydro project to Colorado. TransCanada is considering building the project, known as South Slope. 

New York Announces Fuel Cell Incentives

The New York State Energy Research and Development Authority (NYSERDA) announced an incentive program for businesses, hospitals or other large power consumers interested in installing fuel cells.

The technology allows users to generate some of their own power from clean energy, using less energy from the electric grid.

NYSERDA's Customer-Sited Tier Fuel Cell Program will provide up to $21.6 million through 2015. The program provides an incentive toward the cost of fuel cell installation, plus payments over the first three years of operation based on power produced.

Companies can collect a total payment of up to $1 million for fuel cells, based on the size of the project. Funding is awarded to applications received on a first-come, first-serve basis.
 
Oregon Mandates 5% Biodiesel Blend

On April 1, Oregon became the second US state to require that most diesel fuel contain at least 5% biodiesel (B5).
 
The state already had a 2% biodiesel (B2) requirement. Oregon's B5 requirement was scheduled to be triggered when the in-state production capacity reached 15 million gallons annually, which the biodiesel plants recently accomplished. The requirement will generate about 25 million gallons of biodiesel demand annually.

Minnesota was the first state to pass a B2 biodiesel requirement, which has since increased to B5. The state's required volume of biodiesel is scheduled to rise to B10 by 2012, and B20 by 2015.

Washington and Pennsylvania both have a B2 requirement in effect. Connecticut, Louisiana, Massachusetts and New Mexico have all passed similar legislation that hasn't yet taken effect.


Original article can be seen on SustainableBusiness.com News

...by Warren Kirshenbaum

The Emergency Economic Stabilization Act of 2008 is legislation which contains a number of tax incentives designed to encourage businesses to make investments in solar energy, including extensions of the business solar investment tax credit (ITC). The following is a brief summary of the provisions directly and indirectly benefiting the solar industry.

Provisions Directly Benefitting the Solar Industry:

The Business Solar Investment Tax Credit bill extends the 30% Income Tax Credit for solar energy properties for eight years through December 31, 2016. The bill allows the Tax Credit to be used to offset both regular and alternative minimum taxes and permits public utilities to directly invest in solar facilities and claim the Income Tax Credit. The five-year accelerated depreciation allowance for solar property is permanent and unaffected by the passage of the eight-year extension of the solar ITC.

Provisions Indirectly Benefiting the Solar Industry:

Extension of Energy-Efficient Buildings Deduction. Current law allows taxpayers to deduct the cost of energy-efficient property installed in commercial buildings. The amount deductible is up to $1.80 per square foot of building floor area for property installed in commercial buildings as part of:

•   Interior lighting systems,
•   Heating, cooling, ventilation, and hot water systems,
•   The building envelope.

Expenditures must be certified as being installed as part of a plan designed to reduce the total annual energy and power costs with respect to the interior lighting systems, heating, cooling, ventilation, and hot water systems of the building by 50 percent or more in comparison to certain established standards. The bill extends the energy efficient commercial buildings deduction through December 31, 2013. (This is section 179D in the Internal Revenue Code).

Qualified Energy Conservation Bonds. The bill creates a new category of tax credit bonds, "Qualified Energy Conservation Bonds" to finance State and local government initiatives designed to reduce greenhouse emissions. QECBs can be issued to finance capital expenditures incurred for:

•   Reducing energy consumption by at least 20%;
•   Implementing green community programs;
•   Rural development involving the production of electricity from renewable resources.

The bonds can also be used to finance research facilities and provide research grants for, among other things, technologies to reduce peak use of electricity. There is a national limitation of $800 million, allocated to States, local and tribal governments.