Billions in Lending Authority for Renewable Energy Projects

News Media Contact(s): (202) 586-4940 For Immediate Release July 29, 2009 Obama Administration Announces Billions in Lending Authority for Renewable Energy Projects and to Modernize the Grid Loan Guarantees Will Help Create New Jobs while Fostering Clean Energy Innovation Washington, DC – U.S. Energy Secretary Steven Chu announced today that the Department of Energy will provide up to $30 billion in loan guarantees, depending on the applications and market conditions, for renewable energy projects. Another $750 million will support several billion dollars more in loan guarantees for projects that increase the reliability, efficiency and security of the nation’s transmission system. The two new loan guarantee solicitations announced today are being funded partly through the Recovery Act and partly through 2009 appropriations. “These investments will be used to create jobs, spur the development of innovative clean energy technologies, and help ensure a smart, strong and secure grid that will deliver renewable power more effectively and reliably,” said Secretary Chu. “This administration has set a goal of doubling renewable electricity generation over the next three years. To achieve that goal, we need to accelerate renewable project development by ensuring access to capital for advanced technology projects. We also need a grid that can move clean energy from the places it can be produced to the places where it can be used and that can integrate variable sources of power, like wind and solar.” The lending authority includes:  Up to $8.5 billion in lending authority supported by 2009 annual appropriations for renewable energy.  Up to $2 billion in subsidy costs, provided by the Recovery Act, to support billions in loans for renewable energy and electric power transmission projects.  Up to $500 million in subsidy costs to support loans for cutting edge biofuel projects funded by the Recovery Act.  Up to $750 million in subsidy costs, provided by the Recovery Act, to support loans for large transmission infrastructure projects in the U.S. that use commercial technologies and begin construction by September 30, 2011. The two solicitations issued today mark the sixth and seventh rounds of solicitations by the Department’s Loan Guarantee Program, which encourages the commercial use of new or improved energy technologies to help foster clean energy projects. Applications will be accepted over the next 45 days. The Department has streamlined its processes to accelerate these new loan solicitations. By investing in both renewable energy technology for generating electricity and technologies to modernize the country's transmission system, the Recovery Act targets the full integration of renewable energy sources onto the electric grid. Read more information on this solicitation and the Department’s Loan Guarantee Program. Additional loan guarantee solicitations funded by the Recovery Act will be announced soon. U.S. Department of Energy, Office of Public Affairs, Washington, D.C.

How To Get Renewable Energy Grant Money from the U.S. Government

September 23, 2009 How To Get Renewable Energy Grant Money from the U.S. Government by J. Peter Lynch, Financial Anaylst How does one go about applying for the new government program that allows a solar, wind project or other specified energy property to receive a cash grant from the U.S. Treasury in lieu of a 30% tax credit? -- Michael W., Hartford, CT. Michael, I’m glad you asked. As someone who recently completed this process, I can tell that there are multiple steps but the process works. The entire application is online. First, you go to the United States Department of the Treasury's Application Submission Page for payments in lieu of tax credits for specified energy property. These payments are authorized by Section 1603 of The American Recovery and Reinvestment Act's tax title signed into law on February 17, 2009. Once you are on the site, you need to check out the guidance section by clicking the link under the first two paragraphs. For the guidance document, Terms and Conditions, and sample application form, go here.(Link Provided by Scotty:http://www.lgprogram.energy.gov) Here in the guidance section, you will find a complete example of a submission and all of the other material you will need to go ahead. It is especially important to make sure to then scroll to the bottom of the page to the Important Reminder section. Here you will need to apply for a CCR – a Central Contractor Registration. You must get a CCR number there before you will be allowed to proceed with your application. To apply, you’ll need your DUNS number, your Tax Identification Number (TIN) and various other pieces of information about your business. Once you have been assigned your CCR, you return to the original submission page, here. At this point you can pick a username and password from the submission page and proceed to fill in the submission document. You will need: * Complete details of the project, * Full accounting as to all expenses and * A number of other items, which are described in the document Bear in mind that there is a lot of requested information to fill in, but it is well worth it. If you take it one step at a time you will be fine. The Obama administration and the U.S. Treasury have, in my opinion, made the government proud. They actually came up with an excellent idea – Cash instead of tax credits – and implemented it quickly and ahead of schedule! In fact, they promise that after the application has been accepted as complete that they will review the document and pay the grant within 60 days. Sounds fast, doesn’t it? But I am here to tell you the good news. We applied for such a grant for our building, a 550-kW PV system at 60 Shelter Rock in Danbury CT on the first day that the government was accepting applications and we received our grant in the first round of grants via wire transfer in approximately 10 days from start to finish! I think that my project is a good real world example of the type of new ideas and leadership that the new administration is encouraging to help the renewable energy industry prosper and grow. If you have a renewable energy project and you’d like some help applying for a grant, feel free to contact me. Good luck! Mr. Lynch has worked, for 32 years as a Wall Street security analyst, an independent security analyst and private investor in small emerging technology companies. He has been actively involved in following developments in the renewable energy sector since 1977 and is regarded as an expert in this field. He was the contributing editor for 17 years to the Photovoltaic Insider Report, the leading publication in PV that was directed at industrial subscribers, such as major energy companies, utilities and governments around the world. He is currently a private investor and has from time to time been a financial/technology consultant to a number of companies. He can be reached via e-mail at: SOLARJPL@aol.com. Please visit his website for the promotion of solar energy – www.sunseries.net or his new solar powered building at www.60shelterrock.com

The Race for New Energy-Related Federal Cash Grants

The Race for New Energy-Related Federal Cash Grants by Gregory C. Burkart & Jerome M. Schwartzman Not even Franklin Delano Roosevelt could have imagined the scope and breadth of the current federal programs to stimulate the economy. Some of the new federal programs require standing in a different kind of line -- a line to obtain grants set aside for energy-related projects and, unlike the FDR programs, it appears to be the race goes to the swift. The U.S. Department of Treasury recently released its long-anticipated guidance on payments for specified energy property in lieu of tax credits (Section 1603 Grants). Since August 1, when the application became available online, this program has been a hit with the energy and investment communities. In the first 45 days of the program, the Treasury Department has issued checks totaling $1.05 billion on 40 projects. While the program does not expire until October 1, 2011, projects must generally be commenced during 2009 or 2010, and the projects must be placed in service by various dates, as further explained below. The Section 1603 Grant is received within 60 days of filing a completed application or placing the property in service, whichever is later. If you have current or potential projects that may benefit from these grants, you should review the application as well as consider the following information about the program. The Section 1603 grants under the American Recovery and Reinvestment Act of 2009 (ARRA) provides for cash grants equaling 30% of the basis of “specified energy property” (10% for certain property). For this purpose, “specified energy property” generally includes two broad categories of property, IRC Section 45 (renewable-based electricity production property) and Section 48 (qualifying alternative energy credit property). Expansions of existing Section 45 and 48 properties are also eligible for the grants. The government is offering cash grants rather than credits based on the “diminished investor demand for income tax credits” in the current economic climate. We note that the Section 1603 Grant is not subject to federal income tax (there is an exception for certain leases), but may be subject to state income/franchise or gross receipts tax. Instead, the basis of the “specified energy property” is reduced by an amount that is equal to 50% of the cash grant. To determine basis of the property, the guidance adopts the general rules of determining basis for federal income tax purposes. Generally, the basis is the cost of the property placed in service after 2008, “unreduced by any other adjustments to basis, such as that for depreciation, and includes all items properly included by the taxpayer in the depreciable basis.” To be eligible for the Section 1603 Grant, the specified energy property must be originally placed in service by the owner or lessee. “Specified property” is depreciable (or amortizable in lieu of depreciation) “tangible personal property” and other tangible property (excluding buildings) as defined in the Income Tax Regulations. The tangible personal property must be an integral part of the facility and must be located at the facility. “Placing the property in service” means that the specified energy property is ready and available for its specific use. Where a project contains used parts, the property still qualifies for “original use” if the cost of the used parts is not more than 20% of the total cost of the facility. There are four categories of persons who are not eligible for the Section 1603 Grant: 1. Any federal, state or local government 2. Any organization described in IRC Section 501(c) and exempt from tax under IRC Section 501(a) 3. A clean renewable energy bond dealer or a cooperative electric company 4. Any partnership or pass-thru entity, any direct or indirect partner of which is an organization or entity described in categories one to three above, unless the person only owns an indirect interest in the applicant through a blocker sub (e.g., a taxable C corporation). The property must be placed in service by a date known as the “Credit Termination Date,” which varies with the type of project. The applications are due, even for projects that have started construction in 2009 or 2010 but have not been placed in service during those years, by the statutory deadline of October 1, 2011. The Treasury Department promises payment of the Section 1603 Grant within 60 days of either placing the property in service or receiving a completed application, whichever is later. For those projects under construction, the Treasury Department proposes to review the application materials and notify the applicants whether the eligibility requirements, through the date of application, have been met. Once the applicant completes construction, the company has 90 days after placing the property in service to submit supplemental information to the Treasury Department for it to make a final determination on eligibility. For applications that require supplemental information, the Treasury Department will provide notification, and the applicant has 21 days to provide such information to the Treasury Department. Structuring Section 1603 Grant Investments The investment can be made through a partnership or limited liability company, but each partner/member must be eligible for the credit. However, an ineligible investor can invest through a taxable C corporation. While non-U.S. investors are generally not eligible, certain exceptions may apply. Though the grant is generally available to owners of property, it is also available to lessees in certain circumstances. For example, it is available to the lessee in a sale/leaseback transaction if three conditions are satisfied: 1. The lessee must be the person who originally placed the property in service; 2. The lessee must have sold and leased the property within three months after the date the property was originally placed in service; and 3. The lessee and the lessor must not make an election to preclude application of the “sale-leaseback” rules. If a Section 1603 Grant is received for property and the property is disposed of within five years of placing the property in service or the property no longer qualifies as “specified energy property,” the grant must be repaid to the Treasury Department on a declining, pro-rata basis over five years. That is, recapture is 100% in the first year, 80% in the second year and so forth. The Treasury Department has also issued guidance (Notice 2009-52) on electing an investment tax credit based on the cost of a facility (similar to those for solar and fuel cells) rather than based on the production of electricity. As noted by the government, cash grants may be a more attractive option these days than a tax credit. Gregory Burkart is a managing director in the Detroit office of independent financial advisory and investment banking firm Duff & Phelps. His 13 years of experience includes specialization in the structuring and negotiating of government-sponsored economic development incentive packages. Having previously served as former Michigan Governor Engler’s Environmental Ombudsman, Gregory is an expert on domestic and international site selection; economic incentives negotiation; decision analysis; and demonstrating development projects' economic and fiscal impact to state and local governments. Jerome Schwartzman is a managing director in the New York office of independent financial advisory and investment banking firm Duff & Phelps. Jerome has more than 18 years of experience as a tax specialist and attorney, primarily in the areas of mergers and acquisitions, transaction consulting and bankruptcy. He has vast expertise in tax issues related to domestic and international transactions and has served private equity funds, public and private companies and numerous investment banking firms. Jerry has also served as an expert witness in a number of litigation and arbitration matters. Next Post:[Editor’s note: To read about a project that went through the process and received funding, check out Peter Lynch’s Ask the Experts article: How to Get Renewable Energy Grant Money from the U.S. Government. ] Image Gallery (1)

Green X-mas Tree, New York Style

No pang of guilt towards the environment this year in Rockefeller Center as the traditional Christmas tree will be lit with energy-saving bulbs throughout the holidays and then transformed into houses by Habitat for Humanity. The Rockefeller Center Christmas Tree in Manhattan, N. Y. attempts to inspire on more levels than one this year, not only with holiday cheer and goodwill, but also with peaceful thoughts (and actions) towards our environment. New York City Mayor Michael Bloomberg said Tuesday that he hopes the brightly lighted Manhattan trademark display will inspire New Yorkers and tourists alike to make “greener” choices themselves. “Now they will see an example of green leadership which may inspire them to make greener choices in their own lives,” Bloomberg said. The entire process of cutting, transporting, lighting and displaying the tree, as well as reusing it after the holiday season, is environmentally-conscious this year. The 84-foot-tall Norway spruce which is the 75th Tree was cut with a hand saw by two workers, the old-fashioned way, to honor “the heritage of the Tree process,” official website www.thetreenyc.com explains. The tree will be covered with 30,000 multicolored energy efficient light-emitting diodes, or LEDs, strung on five miles of wire. This will reduce the display's electricity consumption from 3,510 to 1,297 kilowatt hours per day, reports the Associated Press. The daily savings is equal to the amount of electricity consumed by a typical 2,000-square-foot house in a month, per the AP. There will also be a 365-panel solar energy array installed on the roof of 45 Rockefeller Plaza to create a 70Kwh generation station, which will remain in place after the holiday season. The official lighting of the tree will occur during a ceremony on Nov. 28; during the following weeks, the tree will be illuminated from 5:30 a.m. to 11:30 p.m. most days, through the first week of January. The tree will be taken down on January 8, only to serve a higher purpose, as Habitat For Humanity will use it to build symbolic doorframes that will be used in select HFH building programs in NYC, the Gulf Coast, India and Brazil. LED LIGHTING:

Tankless Water Heaters, Save Energy & Water

Demand (Tankless or Instantaneous) Water Heaters Financial Benefits * Did you know that a tankless water heater can save you $400 to $700 over its lifetime? A tankless gas water heater saves an average of $400 over thirteen years as compared to a conventional gas storage heater, and an electric tankless water heater saves about $700 over thirteen years as compared to a conventional electric storage heater. * Did you know that you can rely on your tankless water heater for more than 20 years? While most conventional water heaters only last 10 to 15 years, most tankless water heaters will last more than 20 years, and their easily replaceable parts make repairs simple and durable. Environmental Benefits * Did you know that a tankless water heater could save your home up to 86 gallons of water per day? Homes that use a lot of hot water can increase energy efficiency by 8% to 14%, saving about 86 gallons of water per day. Homes with typical hot water usage, 41 gallons or less each day, can increase energy efficiency by 24% to 34% by installing a tankless water heater. Installing a tankless heater at every hot water outlet can result in energy savings of 27% to 50%! Note Added by Scotty, Scott's Contracting: Tankless water heaters need 2/3 less space- can be mounted in, Bath/Kitchen, Cabinets. email:scottscontracting@gmail.com for additional info. Installation Quotes free of charge Demand (tankless or instantaneous) water heaters provide hot water only as it is needed. They don't produce the standby energy losses associated with storage water heaters, which can save you money. Here you'll find basic information about how they work, whether a demand water heater might be right for your home, and what criteria to use when selecting the right model. Illustration of an electric demand water heater. At the top of the image, the heating unit is shown. Cold water flows in one end of a pipe, flows through and around several curved pipes over the heating elements, and out the other end as hot water. Beneath the heating unit, a typical sink setup is shown. The sink has two pipes coming out the bottom, one for the hot water line and one for the cold water line. Both pipes lead to the heating unit, which is installed in close proximity to the area of hot water use, and is connected to a power source (110 or 220 volts). How They Work Demand water heaters heat water directly without the use of a storage tank. Therefore, they avoid the standby heat losses associated with storage water heaters. When a hot water tap is turned on, cold water travels through a pipe into the unit. Either a gas burner or an electric element heats the water. As a result, demand water heaters deliver a constant supply of hot water. You don't need to wait for a storage tank to fill up with enough hot water. However, a demand water heater's output limits the flow rate. Typically, demand water heaters provide hot water at a rate of 2–5 gallons (7.6–15.2 liters) per minute. Gas-fired demand water heaters produce higher flow rates than electric ones. Sometimes, however, even the largest, gas-fired model cannot supply enough hot water for simultaneous, multiple uses in large households. For example, taking a shower and running the dishwasher at the same time can stretch a demand water heater to its limit. To overcome this problem, you can install two or more demand water heaters, connected in parallel for simultaneous demands of hot water. You can also install separate demand water heaters for appliances—such as a clothes washer or dishwater—that use a lot of hot water in your home. Other applications for demand water heaters include the following: * Remote bathrooms or hot tubs * Booster for appliances, such as dishwashers or clothes washers * Booster for a solar water heating system. Although gas-fired demand water heaters tend to have higher flow rates than electric ones, they can waste energy if they have a constantly burning pilot light. This can sometimes offset the elimination of standby energy losses when compared to a storage water heater. In a gas-fired storage water heater, the pilot light heats the water in the tank so the energy isn't wasted. The cost of operating a pilot light in a demand water heater varies from model to model. Ask the manufacturer how much gas the pilot light uses for the model you're considering. If you purchase a model that uses a standing pilot light, you can always turn it off when it's not in use to save energy. Also consider models that have an intermittent ignition device (IID) instead of a standing pilot light. This device resembles the spark ignition device on some gas kitchen ranges and ovens. For homes that use 41 gallons or less of hot water daily, demand water heaters can be 24%–34% more energy efficient than conventional storage tank water heaters. They can be 8%–14% more energy efficient for homes that use a lot of hot water—around 86 gallons per day. You can achieve even greater energy savings of 27%–50% if you install a demand water heater at each hot water outlet. Selecting a Demand Water Heater Demand water heaters cost more than conventional storage water heaters. However, you may find that a demand water heater may have lower operating and energy costs, which could offset its higher purchase price. Before buying a demand water heater, you also need to consider the following: * Size * Fuel type and availability. * Energy efficiency (energy factor) * Estimate costs. For information about specific demand water heater models, see the Product Information resources listed on the right side of this page (or below if you've printed out this page). Installation and Maintenance Proper installation and maintenance of your demand water heater can optimize its energy efficiency. Proper installation depends on many factors. These factors include fuel type, climate, local building code requirements, and safety issues, especially concerning the combustion of gas-fired water heaters. Therefore, it's best to have a qualified plumbing and heating contractor install your demand water heater. Do the following when selecting a contractor: * Request cost estimates in writing * Ask for references * Check the company with your local Better Business Bureau * See if the company will obtain a local permit if necessary and understands local building codes, etc. If you're determined to install your water heater yourself, first consult the manufacturer. Manufacturers usually have the necessary installation and instruction manuals. Also, contact your city or town for information about obtaining a permit, if necessary, and about local water heater installation codes. Most tankless water heaters have a life expectancy of more than 20 years. They also have easily replaceable parts that extend their life by many more years. In contrast, storage water heaters last 10–15 years. Periodic water heater maintenance can significantly extend your water heater's life and minimize loss of efficiency. Read your owner's manual for specific maintenance recommendations.

Andalay Solar Power " Details "

Designed for Maximum Reliability and Systematic Installation Solar systems must last decades in the harsh environment of your roof. To ensure these systems last, meticulous engineering design was applied to build the next generation in solar systems that eliminates exposure of weather sensitive components. Andalay is designed for primary assembly at our factory, not at your home like ordinary solar systems. The result is an integrated solar system that will provide decades of reliable solar power performance. With “Good Looks” to Match Andalay’s Meticulous Design In addition to Andalay providing a more reliable system that delivers decades of solar power performance, it also delivers a cleaner and more attractive look. With its slimmer panels, invisible electrical cabling and hidden mounting system, Andalay takes less room while blending into your roof like a skylight. A Whole New Look to Solar Power ST175-1 Andalay Mechanical Specifications - System Racking hardware Integrated External Grounding wires Integrated External Wiring connections Factory-assembled Installer-assembled Module-module connections Integrated External (Threaded) (Friction Clips) Space between modules 1/8” Up to 3” Roofing penetrations 25% Fewer Standard Scott's Contracting@gmail.com A whole new look to solar power © March