Tag Archives: Green Energy Finance Initiative

Energy-Efficient Mortgages and Financing

Energy-Efficient Mortgages and Financing

The following Web sites offer information on energy-efficient financing programs, including mortgages, home improvement loans, refinancing, and home energy ratings. 

  • Financing an Energy-Efficient Home

    This fact sheet from the Department of Energy features an overview of energy-efficient financing programs from mortgages to home improvement loans.

  • U.S. Department of Housing and Urban Development: Energy-Efficient Mortgage Program

    The Energy-Efficient Mortgage Program is one of many Federal Housing Authority programs that insure mortgage loans to encourage lenders to make mortgage credit available to borrowers, such as first-time homebuyers, who would not otherwise qualify for conventional loans on affordable terms.

  • Energy Ratings and Mortgages

    Energy efficient homes may qualify for mortgages that take into account a home’s efficiency. Residential Energy Services Network (RESNET) provides information on home energy rating systems, energy efficient mortgages, and finding certified energy raters and lenders who know how to process energy efficiency mortgages.

  • Refinancing for Energy-Efficiency Improvements

    An overview of refinancing to make energy efficiency improvements, from the Alliance to Save Energy.

Stay Tuned for updates… with all the news on Budget Cuts by out Elected Politicians…Who Knows what will happen with the Green Clean Energy Initiative?

Green Tax Breaks Available Thu 2016

If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit.

Below you will find an overview of the federal tax credits for energy efficiency that are still available.

Some energy efficiency tax credits were also available in 2009 and 2010. These can still be claimed on your 2010 taxes. Learn more about the tax credits that expired at the end of 2010.

NOTE: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included changes to home energy efficiency tax credits, beginning after December 31, 2010. This page will be updated with more information; please check back.

How to Claim Your Tax Credit

  • Note: Tax forms for the 2010 tax year may not yet be available. Visit the IRS Web site to obtain the latest forms.
  • Claim improvements made in 2010 on your 2010 taxes, filed by April 15, 2011.
  • Use the 2010 version of the following forms:
    • For renewable and efficiency credits: IRS Form 5695.
    • For alternative motor vehicle credits: IRS Form 8910. Also download instructions for form 8910.
    • For qualified plug-in electric drive motor vehicle credits: IRS Form 8936
  • Save your receipts and the Manufacturer Certification Statement for your records.
  • For 2009 taxes, visit the IRS Web site to obtain the 2009 version of these forms.

Products Eligible for Tax Credits Through 2016

Tax credits for these products are available at 30% of the cost, with no upper limit, through 2016 (Select “See Details” for more information on each product, or see the printable version).

Geothermal Heat Pump

Photo of two geothermal heat pump—two tall rectangular boxes with pipes and tubes coming out the top of each.

Credit: Bruce Green

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes

Solar Energy Systems

Photo of solar panels on the roof of a home.

Credit: Cheryl Unger

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes
  • See details

    Product Requirements More Information
    Solar Water Heating Property At least half of the energy generated by the “qualifying property” must come from the sun.

    The system must be certified by the Solar Rating and Certification Corporation (SRCC).

    Credit includes installation costs.

    Learn more about solar water heaters.

    All ENERGY STAR solar water heaters qualify.

    The water must be used in the dwelling. The credit is not available for expenses for swimming pools or hot tubs.

    Tax credits are only available for the solar water heating system property, not the entire water heating system of the household.

    Photovoltaic Systems (Solar Electric Property) Photovoltaic systems must provide electricity for the residence and must meet applicable fire and electrical code requirement. Learn more about:

Wind Energy Systems

Photo of a home with a small wind turbine behind the garage.

Credit: Bergey WindPower

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes
  • See details

    Product Requirements More Information
    Residential Small Wind Turbines Nameplate capacity of not more than 100 kilowatts.

    Credit includes installation costs.

    Learn more about:

Fuel Cells

Photo of a man examining one of three fuel cells. The fuel cells are tall boxes, roughly six feet tall and three feet wide, with a round panel on the front.

Credit: Capstone Turbine Corporation

Credit: 30% of cost, up to $500 per .5 kW of power capacity

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Primary residence
  • New and existing homes
  • See details

    Product Requirements More Information
    Residential Fuel Cell Systems Efficiency of at least 30% and must have a capacity of at least 0.5 kW.

    Credit includes installation costs.

Vehicle Tax Credits

Tax credits are also available for some vehicles (Select “See Details” for more information on each product, or see the printable version).

Vehicles

Photo of a hybrid electric vehicle.

Credit: ©iStockphoto.com

Credit: Varies, see below.

When:

  • See below; credits phased-out after certain number of vehicles are sold.
  • See details

    Product Requirements More Information
    Hybrids, battery-powered, plug-in electric, advanced lean burn, fuel cell, or alternative fuel vehicles Credit is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. See Fueleconomy.gov to find out which vehicles are still eligible.

    Use IRS Form 8910 (PDF 86 KBPDF) for vehicles purchased for personal use. Use IRS Form 3800 (PDF 144 KBPDF) for vehicles purchased for business. The 2009 forms will be available late 2009 or early 2010.

    Also see credits for alternative fuel vehicle refueling property.

    Plug-in Electric Vehicles Credit: $2,500-$7,500, based on capacity of the battery system. The first 200,000 vehicles sold get the full tax credit before the credit begins phasing out. Use IRS Form 8936 (PDF 78 KBPDF).

    See the IRS information on the Plug-in Electric Vehicle Credit.

You May Be Eligible for Additional Incentives

The tax credits listed here are federal tax credits.

These can be combined with other state, local, and utility incentives.

Related Links

Note: This summary is for informational purposes only and should not be considered official tax information. Please see the IRS web site for official tax guidance.

 

 

 

 

DOE_Weatherization_Recovery_Act_Saves $1,200,000,000

  • weatherized more than 300,000 homes
  • reduce home energy bills
  • reduces energy consumption- average 35 percent
  • $400 saved bills 1st YR
  • 300,000 homes x $400 Saved = $1,200,000,000

 

email Scotts Contracting to schedule a Home Weatherization Inspection.   Scotty, will Analyze your Buildings Components and Supply a Proposal that will meet or exceed suggested Green Building Code– scottscontracting@gmail.com

  1. Computer Generated Reports
  2. Green Proposal will supply a ROI
  3. Cost Saving Analysis

Weatherization Doesn’t Cost it Saves


Secretary Chu Announces Major New Recovery Act Milestone: 300,000 Homes Weatherized

U.S. Department of Energy Secretary Steven Chu today announced that states and territories across the country have now weatherized more than 300,000 low-income homes under the Recovery Act, a major milestone in the Department’s efforts to reduce home energy bills for families. This means that states are now more than 50 percent of the way toward meeting President Obama’s goal of weatherizing approximately 600,000 homes under the Recovery Act. The weatherization program is helping families save money on their energy bills by improving home energy efficiency with upgrades like insulation, air-sealing, and more efficient heating and cooling systems. The program has also trained a new generation of clean energy workers and is employing more than 15,000 workers nationwide.

“Today marks a major milestone for the weatherization program and shows once again that we are on pace to meet the goals of the Recovery Act. This program has already benefitted 300,000 low-income families and put thousands of people to work,” said Secretary Chu. “Through the weatherization program, we are laying the groundwork for a broader efficiency industry in the U.S. that will help grow our economy while saving money for American families.”

Through November, the network of state offices, local agencies, and weatherization providers has completed 300,000 homes. Of the total, more than 100,000 have been completed in just the last four months, showing the dramatically accelerated pace of weatherization under the program. A state-by-state breakdown of the homes weatherized through November is available at http://www.energy.gov/recovery/energyefficiency.htm.

Weatherization assistance reduces energy consumption for low-income families on average 35 percent, saving families on average more than $400 on their heating and cool bills in the first year alone. Nationwide, the weatherization of 300,000 homes is estimated to save $161 million in energy costs in just the first year.

DOE has worked closely with state and local governments to ensure the program is well-managed, responsive, and flexible. Nearly all of the states and territories involved in the program have met the milestone of weatherizing more than 30 percent of their targeted number of homes and many have completed more than half of their goals to date.

 

__________

Homes Weatherized by State

The Department of Energy is collecting monthly data from the states on the number of homes weatherized under the Recovery Act. The below spreadsheets shows figures for homes weatherized (1) in April 2010, and (2) in the first quarter of 2010 (January-March). In March, the weatherization network nationally reached their target run-rate and weatherized more than 25,000 homes across the country. Since the Recovery Act began, states have used their Recovery Act funding and annual program funds to weatherize more than 193,000 homes.

This is an end-of-the-year report on the number of homes weatherized by state as part of the Weatherization Assistance Program during calendar year 2009. This data was reported by states and may be updated as states finalize figures for homes weatherized through December 31st. By the end of 2009, states weatherized more than 125,000 homes with Recovery Act and non-Recovery Act annual federal funding. Since the Recovery Act funding allowed states to accelerate their existing programs with Fiscal Year 2009 funding, the combined total is the best indicator of progress in the program. Nevertheless, the pace of Recovery Act-funded weatherization tripled in the last three months of the year.

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email Scotts Contracting to schedule a Home Weatherization Inspection.   Scotty, will Analyze your Buildings Components and Supply a Proposal that will meet or exceed suggested Green Building Code– scottscontracting@gmail.com

  1. Computer Generated Reports
  2. Green Proposal will supply a ROI
  3. Cost Saving Analysis

Weatherization Doesn’t Cost it Saves

scottscontracting@gmail.com

Energy Efficiency Home Statistics

If you are considering building a ‘New Energy Efficient Home’ in Missouri Check out these Energy statistics- Energy Cost Saving Analysis that I guarantee will please your Bank Account with the Money You will Save on Utility Bills.

A New Home Built using the International Energy Conservation Code- IECC. provides a cost effective payback on Energy Efficiency, with the average pay back time of 3 ½ years (3.5) Not bad for an initial investment of $818.72. The Missouri Pay Back is even faster! BCAP used a baseline for energy efficiency consisting of:

  1. Efficient Lighting and Windows,
  2. a Higher Grade of Insulation and
  3. HVAC Duct Sealing and Testing

The Missouri Statistics are:

  • $875.28 Initial Investment Returns
  • $459.00 per year with a
  • Payback under 2 years (1.91 years)
  • $459 x 20 years = $9,180.00
x 25 years = $11,475.00 
x 30 years = $13,770.00 
  • These Figures are based on: $267,451 for a 2,400-square foot home and a 4.14 percent mortgage interest rate
For the Future St Louis Area New Home Builders I have additional cost Saving Measures that will give you additional areas to save money without sacrificing your Comfort Levels.
Email:scottscontracting@gmail.com to find out how.
  • With Savings like this consider adding a Renewable Energy System designed especially for your Future Property and you could possibly eliminate all the Utility Bills for your Home by Generating your Own Clean Energy!
  • Note: When a Home or Business is operating efficiently- Renewable Energy Systems costs are decreased! Making a RE System much more affordable.

_____________________

Note: The Statistics used in this post were provided by: 1-http://bcap-ocean.org/incremental-cost-analysis and 2-http://www.altenergymag.com/news/2010/11/18/new-homes-can-be-energy-efficient-and-affordable-reveals-study-by-building-codes-assistance-project/18310

Renewable Energy Rebates-Ameren UE-Federal Tax Incentive


Ameren UE Renewable Energy Rebate Program

Recently I was asked:

  • “Why does Ameren UE buy back the electricity created by Renewable Energy System on my House?”

When I directed the question to Ms L.Cosgrove[i] who handles the Local Ameren UE Renewable Energy Department.  She replied:

  • AmerenUE provides the MO Solar Rebate in response to Missourian’s passing Proposition C back in November, 2008[ii],[iii]”

In a nutshell it seems to me that Ameren UE will either have to build Renewable Energy Producing Systems or Purchase the Electricity that is made from Residents and Businesses to comply with the Law.
Which means that Ameren has a Stake in any Renewable Energy Sytem that produces Electricity and is Interconnected utilizing Net Metering to our / their Electircal Grid here in the St Louis Area.
Good News for all those who would like additional Monetary Incentives for Installing RE (Renewable Energy) Systems.
The Ameren Rebate and the Federal Tax Incentive can add up to as much as 2/3 of the cost of the RE System.
Click Here to Contact Scotty if any additional information is needed.

Posted by Scotty  Labels: , , , , , , , ,



[i] Lisa M. Cosgrove | Renewables Specialist  | 1901 Chouteau Avenue, MC 611 | St. Louis, MO 63103
314-554-2649 | fax 314-206-1387 | lcosgrove@ameren.com [ii] See http://www.sos.mo.gov/elections/2008petitions/2008-031.asp for more details.

[iii] 2008 Initiative Petitions
Approved for Circulation in Missouri

Amendment to Chapter 393 of the Revised Statutes of Missouri, Relating to Renewable Energy, version 4, 2008-031

THE PROPOSED AMENDMENT

Be it enacted by the people of the state of Missouri:Chapter 393, RSMo, is amended by repealing sections 393.1020, 393.1025, 393.1030, and 393.1035, and substituting therefor three new sections to be known as sections 393.1020, 393.1025 and 393.1030, to read as follows:393.1020. Sections 393.1025 to 393.1030 shall be known as the Renewable Energy Standard.393.1025. As used in sections 393.1020 to 393.1030, the following terms mean: 1. “Commission”, the public service commission; 2. “Department”, the department of natural resources; 3. “Electric utility”, any electrical corporation as defined by section 386.020; 4. “Renewable energy resources”, electric energy produced from wind, solar thermal sources, photovoltaic cells and panels, dedicated crops grown for energy production, cellulosic agricultural residues, plant residues, methane from landfills or from wastewater treatment, clean and untreated wood such as pallets, hydropower (not including pumped storage) that does not require a new diversion or impoundment of water and that has a nameplate rating of 10 megawatts or less, fuel cells using hydrogen produced by one of the above-named renewable energy sources, and other sources of energy not including nuclear that become available after the effective date of this section and are certified as renewable by rule by the department; and 5. “Renewable energy credit” or “REC”, a tradable certificate of proof that one megawatt-hour of electricity has been generated from renewable energy sources. 393.1030.1. The commission shall, in consultation with the department, prescribe by rule a portfolio requirement for all electric utilities to generate or purchase electricity generated from renewable energy resources. Such portfolio requirement shall provide that electricity from renewable energy resources shall constitute the following portions of each electric utility’s sales: (a) No less than two percent for calendar years 2011 through 2013; (b) No less than five percent for calendar years 2014 through 2017; (c) No less than ten percent for calendar years 2018 through 2020; and (d) No less than fifteen percent in each calendar year beginning in 2021.

At least two percent of each portfolio requirement shall be derived from solar energy. The portfolio requirements shall apply to all power sold to Missouri consumers whether such power is self-generated or purchased from another source in or outside of this state. A utility may comply with the standard in whole or in part by purchasing RECs. Each kilowatt-hour of eligible energy generated in Missouri shall count as 1.25 kilowatt-hours for purposes of compliance. 2. The commission, in consultation with the department and within one year of the effective date of sections 393.1020 to 393.1030, shall select a program for tracking and verifying the trading of renewable energy credits. An unused credit may exist for up to three years from the date of its creation. A credit may be used only once to comply with this act and may not also be used to satisfy any similar non-federal requirement. An electric utility may not use a credit derived from a green pricing program. Certificates from net-metered sources shall initially be owned by the customer-generator.  The… continues on web site


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Illinois’ Green Energy Finance Initiative

March 2, 2010

Illinois’ Green Energy Finance Initiative

A recent initiative from Illinois may serve as a model for other states that hope to attract green energy projects and stimulate economic development.

by Marnin Lebovits, Illinois Finance Authority

There are plenty of reasons to encourage and support the development of renewable energy projects. But in this down economy, the credit markets are typically discouraging. Here in Illinois, we’ve found a way to open new doors to financing renewable energy projects because we know they’re good business–and good for our state.

Like other states, Illinois recognizes the climate and environmental benefits from generating power from renewable energy sources. We know that developing these projects will reduce our region’s dependence on foreign oil.

Renewable energy will also help to meet state renewable portfolio standard (RPS) targets. Illinois established its targets in August 2009 and requires that by 2025 one-quarter of all of the power used annually in Illinois must be generated from renewable energy sources. Of this amount, 75 percent of the renewable power used must be generated from wind projects. This requirement has created a significant interest in renewable energy projects, especially wind projects. Also, like other states our state wants, to the extent possible, to provide incentives to help reduce the cost of power generation from these projects so that savings can be passed on to ratepayers.

Finally, renewable energy projects will spur economic development and provide a secure revenue stream for many farmers and other property owners struggling during this recession. The projects will create jobs–many in depressed, rural regions of the U.S., where municipalities will also benefit from the increased tax revenue sparked by such development.

Challenges for Project Finance

Despite these benefits, developers typically face serious obstacles when they attempt to finance renewable energy projects. Capital markets continue to face severe challenges, and the ability for developers to obtain traditional project financing is much more limited than in the past. Only a handful of financial institutions will provide loans for renewable energy projects, including wind farms. Even then, the terms and conditions for the loans are quite arduous.

Most recent transactions include loan terms of only 5 or 7 years, with a 20-year amortization period, generating significant refinance risk in most cases. Developers with the ability to raise capital in other forms, either on a portfolio basis or through a rated parent entity, are forced to prioritize projects in different stages of development across the U.S. market and even around the world.

To better compete, the Illinois legislature created new financing tools to aggressively attract renewable energy projects to our state. The state’s approach might serve as a model for others hoping to attract similar types of development

The Illinois Solution

The Illinois legislature recently passed a bill adding renewable energy projects to the portfolio of developments eligible for assistance through the Illinois Finance Authority (IFA), which provides expert, hands-on support to help businesses get the capital they need for growth.

The IFA’s assistance for renewable energy will come in the form of up to $3 billion of loan guarantees for project debt. This project finance can contain long-term tenors to fully repay the project debt, thereby eliminating the risk of refinancing. The loan guarantees will be secured by the state’s moral obligation. While moral obligation is not a full faith and credit guarantee, it is a model that has been used extensively in the municipal finance markets, and it’s used often in Illinois. As of September 2009, the State has outstanding debt (unrelated to this renewable energy finance initiative) of over $100 million using this model. Eight state agencies have the ability to issue moral obligation-supported debt totaling around $1.5 billion for local governments and economic development purposes. Clearly, this is an important funding tool.

These incentives will reduce a project’s financing costs by an estimated 100 to 175 basis points. Combined with other incentives offered by the state, such as grant funding available from the Department of Commerce and Economic Opportunity for renewable energy projects, Illinois’ incentive package is drawing attention from developers. In fact, the IFA late in 2009 was already reviewing a number of renewable energy projects for inclusion in this program in anticipation of the legislation’s effective date, January 1, 2010.

Private Sector Debt Loan Guarantees

Under the first of three IFA funding models, a developer can work with its traditional project finance lenders and add the IFA as a partner, providing a “loan guarantee” to private sector lenders. The private sector lender would also have the support of Illinois’ moral obligation pledge.

Lenders will need to first look to the renewable energy project revenues to cover the debt service. If the project doesn’t generate enough revenue, the lender (or lead arranger bank for a syndicated loan transaction) may call in the IFA. The addition of the state’s moral obligation may allow the private sector lenders to extend the term of their project debt, possibly even to fully amortize the debt (based upon the tenor of the power purchase agreement) and should help to reduce the cost of the private sector financing.

In a second financing model, the IFA would issue bonds secured by both project revenues and the state’s moral obligation support. The IFA would then loan the bond proceeds to the project developer to pay for project construction. Again, the first repayment source for the debt service on the bonds is project revenues. Illinois will be called upon by the Bond Trustee to fund any debt service deficiency on a moral obligation basis. In this instance, the tenor of the bonds could be set to correspond to a final term that will be near the PPA maturity, fully amortizing the project debt. The bond investors will assume the project risk. However, investors will also benefit from the security of the guarantee of the State of Illinois on a moral obligation basis. This additional security will reduce the project’s interest rate.

A Third Option

These two models can be combined with the private sector providing a loan for a shorter-term piece and bonds issued for a longer-term piece of the debt financing. For example, the IFA can provide a loan guarantee to private sector lenders on their shorter-term financing (also known as “Series A”) and the IFA can be the lender, on a pari-passu basis (in other words, without partiality) for a “Series B” financing that will represent the debt’s longer-term portion. The combination of the proceeds from the Series A and Series B financings will provide the total debt funding for the project, thereby reducing total debt service costs and eliminating the refinance risk of traditional private sector funding.

The U.S. Department of Energy (DOE) loan guarantee program for renewable energy projects requires a participating lender (either a financial institution or an economic development authority) to share risk with the DOE. Although the IFA intends to work with projects participating in the DOE program, it is not required.

To back its push for renewable energy projects the state created the Illinois Energy Team (IET) to help review environmental and technical aspects of renewable energy projects and help expedite project development. The IET includes specialists from the state university system, Argonne National Laboratory and state agencies such as the Illinois Finance Authority, the Illinois Power Agency, the Illinois EPA and the state Department of Commerce and Economic Opportunity. This panel reviews feasibility studies and reports, evaluates technology, and considers project siting, grid interconnection and environmental impact issues. The IET will also provide a forum for developers to work with various state agencies to help projects come to fruition.

The box presents a sample of the expected terms and conditions for the moral obligation support from the State of Illinois. These terms and conditions — subject to change — represent traditional project finance criteria.

The IFA has accepted program applications for three wind projects. Inquiries have come in from developers involved in virtually all renewable energy sectors, including wind, solar, clean coal, geothermal, biodiesel and biomass.

Marnin Lebovits joined the Illinois Finance Authority as a senior funding manager in August 2009 and helped create program guidelines and credit criteria. For the last 20 years prior to joining the IFA, he has been active in municipal and project finance, managing and actively participating in the municipal and project finance groups for both Sumitomo Bank and DEPFA BANK. Mr. Lebovits received his MBA from the Wharton School of the University of Pennsylvania and is a CPA.
For more information on this Illinois financing initiative, contact Mr. Lebovits at 312-651-1344 or mlebovits@il-fa.com.