Monday, December 16, 2013

Commercial Solar Hot Water Rebates & Tax Credits - Yields Profits for Apartment Owners in SoCal

By Ted Bavin. December 16th, 2013. For the first time in history, commercial solar hot water systems will pay for themselves in 1-3 years, yielding huge cost savings over gas. This is due to simultaneous incentives (cash rebate and tax credit) now being offered by the state of California and the Federal government. Ted Bavin, owner of All Valley Solar in Los Angeles, a true solar expert with over 30 years in the business, states, “this perfect storm of incentives has aligned to make this the most profitable time for businesses and apartment owners to invest in solar hot water systems. By the end of 2013, All Valley Solar will have secured over $940,000 in CSI rebates for SoCalGas customers; and this will continue to be a very popular program into 2014.” Eligibility for the commercial solar rebate includes: owners of multi-family apartment buildings and condos, schools, government buildings, military barracks, restaurants, Laundromats, food processors and other commercial hot water users. All Valley Solar are the solar experts, we are listed on google search under the keywords: solar Los Angeles, solar North Hollywood, solar hot water Los Angeles, solar thermal los angeles, solar companies los angeles, los angeles solar installer, los angeles solar panels.

So let’s take a look at how the economics of this “perfect storm” of incentives works. First, the Gas Company, through the California Solar Initiative, pays an average of 50% to 60% of the total cost (received within 30 days of completion). Then the IRS pays you back another 30% as a tax credit, even toward AMT (Alternative Minimum Tax). Finally, bonus depreciation lets you write half of it off in 2013, with the other half depreciated over the next five years.  But in order to reap these benefits, the first step is to find a competent solar thermal contractor. Nine out of ten Internet search results will yield solar electric contractors who know little to nothing about solar thermal… but they may be hungry for business, so beware!  The CSI Thermal website (http://www.csithermal.com) has a map showing all the rebated projects in your area and the company that installed each system. Those companies may be looked up on the CA Contractors State License Board website (https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx) to ascertain their experience, specialty and whether there are any active complaints against them.  Bavin says, “look for a company with a C46 license (solar) with at least 15 years of experience, not just a C10 (electrical), C36 (plumbing), C39 (roofing), or B (general). Keep in mind, however, that the C46 (solar) license encompasses both thermal and photovoltaic electric solar disciplines, and most contractors are masters of one or the other...not usually both.” Bavin also suggests that “when hiring a company to install a solar hot water system, ask for a list of at least ten Thermal multi-family installation references and contact at least three.” Additional Tip: the six digit CA State License number is sequential from date of licensing, so the lower the number the longer the experience.
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