Broken down, that's a maximum $2,000 from federal stimulus money (which was raised from $750) plus a maximum $900 available from New Hampshire's renewable energy program. And another piece of good news: folks getting the maximum $2,900 rebate can also get a 30 percent federal tax credit.
Not everybody gets the maximum, though.
The amount of your rebate depends on the power potential of your solar system.
Kate Epsen of the PUC explained that if you purchase a $10,000 system that produces 6 to 19.9 MBTU (million British Thermal Units), the mixed state and federal incentive, plus the IRS federal tax credit, can be as much as $5,000.
For systems that are 20 to 29.9 MMBTU, the number goes to $5,150 available and for systems of 30 MMBTU or higher, the incentive climbs to $5,300, assuming the same purchase price. Larger systems however cost more money upfront, she said, which increases the federal tax credit in turn.
Companies like Revision Energy have set out to explain to potential customers what the rebates can mean for them. In one scenario, the company says a typical residential project involving 2 flat plate collectors that produce around 18.25MMBTU and cost $10,500 can mean an incentive package that adds up to $5,750.
There is, however, a flip side to New Hampshire's move to increase the amount of the individual rebate: it lowered the number of slots to about 248, meaning that folks wanting to take advantage should hurry in order to get the $2,000 federal chunk. The state portion of the rebate will likely continue even when the federal money runs out.
Epsen says that the PUC's new rebate structure has increased interest. The commission has processed 133 applications out of which 112 qualified for the $2,000 federal rebate.
In order to receive the requisite $2000 federal rebate, Epsen said, applications must be processed and invoices issued before February of 2012.
More on federal credit
The 30 percent federal tax credit — established by Congress in 2005 and labeled the Residential Renewable Energy Tax Credit — was capped at $2,000 for sun-powered energy systems. But that cap has been removed. So, when calculating the costs at tax time, you can include the not only your new system's equipment costs but also labor. And you can carry the credit forward into other tax years too.
Jim Gamble, owner of GreenSource Energy Solutions Solar Store in Concord, argues that customers should hurry because the funding history of the Renewable Energy Fund is inconsistent largely because it depends on utility payments under New Hampshire's Renewable Portfolio standard.
"We saw how quickly the funds dried up for the residential solar electric rebate last year," said Gamble.
Sarah Brown, president of Green Alliance, an organization that promotes environmentally responsible businesses, agrees.
"Everyone is very concerned about what the new Republican state leadership will do in terms of axing state incentives," she said. "They have made it clear that they are looking to do that."
Brown said several New Hampshire and Maine solar companies are beginning to offer unique financing options to spread initial costs of getting a solar system up and running.
Her group works with Dover-based Seacoast Energy Alternatives (SEA) Revolution Energy, as well as Concord-based Green Source Energy Solutions, companies she said are working to take the "initial financial pain out of what is a long-term cost saver."
She said that some area companies, for example, are teaming with mortgage and loan companies to make it so that a new solar system is seen as a home equity investment by a lender.
"The major hurdle for most businesses or residences considering solar is the initial up-front cost," said Brown. "So of course rebates help reduce this risk and the financing is like the icing on the cake.
"Combining rebates, tax credits and financing is the magic triangle that is really going to put solar on the map for the entire Northeast."
SOURCE: http://www.seacoastonline.com/apps/pbcs.dll/article?AID=/20110131/BIZ/101310306/-1/NEWSMAP
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