Property Tax Exemption
Many consumers are confused at to whether their new solar system is subject to Property Taxes. The below paragraphs are from the State Legislature's California Revenue and Taxation Code, Section 73 which exempts homeowners property taxes from being increased due to the value to their homes increasing after solar is installed.
Property Tax Exemption Jan.08, 2009
California Law provides a property tax exemption for qualified solar energy systems.
California Revenue and Taxation Code, section 73.
73. (a) Pursuant to the authority granted to the Legislature pursuant to paragraph (1) of subdivision (c) of Section 2 of Article XIII A of the California Constitution, the term “newly constructed,” as used in subdivision (a) of Section 2 of Article XIIIA of the California Constitution, does not include the construction or addition of any active solar energy system, as defined in subdivision (b). (b) (1) “Active solar energy system” means a system that uses solar devices, which are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy. (2) “Active solar energy system” does not include solar swimming pool heaters or hot tub heaters. (3) Active solar energy systems may be used for any of the following: (A) Domestic, recreational, therapeutic, or service water heating. (B) Space conditioning. (C) Production of electricity. (D) Process heat. (E) Solar mechanical energy. (c) For purposes of this section, “occupy or use” has the same meaning as defined in Section 75.12. (d) (1) (A) The Legislature finds and declares that the definition of spare parts in this paragraph is declarative of the intent of the Legislature, in prior statutory enactments of this section thatexcluded active solar energy systems from the term “newly constructed,” as used in the California Constitution, thereby creating a tax appraisal exclusion. (B) An active solar energy system that uses solar energy in the production of electricity includes storage devices, power conditioning equipment, transfer equipment, and parts related to the functioning of those items. In general, the use of solar energy in the production of electricity involves the transformation of sunlight into electricity through the use of devices such as solar cells or other solar collecting equipment. However, an active solar energysystem used in the production of electricity includes only equipment used up to, but not including, the stage of conveyance or use of the electricity. For the purpose of this paragraph, the term “parts” includes spare parts that are owned by the owner of, or the maintenance contractor for, an active solar energy system that uses solar energy in the production of electricity and which spare parts were specifically purchased, designed, or fabricated by or for that owner or maintenance contractor for installation in an active solar energy system that uses solar energy in the production of electricity, thereby including those parts in the tax appraisalexclusion created by this section. (2) An active solar energy system that uses solar energy in the production of electricity also includes pipes and ducts that are used exclusively to carry energy derived from solar energy. Pipes and ducts that are used to carry both energy derived from solar energy and from energy derived from other sources are active solar energy system property only to the extent of 75 percent of their full cash value. (3) An active solar energy system that uses solar energy in the production of electricity does not include auxiliary equipment, such as furnaces and hot water heaters, that use a source of power other than solar energy to provide usable energy. An active solar energy system that uses solar energy in the production of electricity does include equipment, such as ducts and hot water tanks, that is utilized by both auxiliary equipment and solar energy equipment, that is, dual use equipment. That equipment is active solar energy system property only to the extent of 75 percent of its full cash value. (e) (1) Notwithstanding any other law, for purposes of this section, “the construction or addition of any active solar energy system” includes the construction of an active solar energy system incorporated by the owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. The exclusion from “newly constructed” provided by this subdivision applies to the initial purchaser who purchased the new building from the owner-builder, but only if the owner-builder did not receive an exclusion under this section for the same active solar energy system and only if the initial purchaser purchased the new building prior to that building becoming subject to reassessment to the owner-builder,as described in subdivision (d) of Section 75.12. The assessor shall administer this subdivision in the following manner: (A) The initial purchaser of the building shall file a claim with the assessor and provide to the assessor any documents necessary to identify the value attributable to the active solar energy system included in the purchase price of the new building. The claim shall also identify the amount of any rebate for the active solar energy system provided to either the owner-builder or the initial purchaser by the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, an electrical corporation, a local publicly owned electric utility, or any other agency of the State of California. (B) The assessor shall evaluate the claim and determine theportion of the purchase price that is attributable to the active solar energy system. The assessor shall then reduce the new base year value established as a result of the change in ownership of the new building by an amount equal to the difference between the following two amounts: (i) That portion of the value of the new building attributable to the active solar energy system. (ii) The total amount of all rebates, if any, described in subparagraph (A) that were provided to either the owner-builder or the initial purchaser. (C) The extension of the new construction exclusion to the initial purchaser of a newly constructed new building shall remain in effect only until there is a subsequent change in ownership of the new building. (2) The State Board of Equalization, in consultation with the California Assessors’ Association, shall prescribe the manner, documentation, and form for claiming the new construction exclusion required by this subdivision. (f) This section applies to property tax lien dates for the 1999 -2000 fiscal year to the 2015-16 fiscal year, inclusive. (g) The amendments made to this section by the act that added this subdivision apply beginning with the lien date for the 2008-09 fiscal year. (h) This section shall remain in effect only until January 1, 2017, and as of that date is repealed.
Sunday, April 24, 2011
Should You Get Solar Power Now, or Wait
Buy Now or Wait and See
It’s the eternal question: Buy now or wait? Assuming you want to install solar panels on your roof, should you go for it or hold off for better technology or lower prices? Some consumers are concerned that solar pricing and higher efficiencies are just around the corner. Why then, would consumer's want solar now?
The first reason is pricing has dropped from over $4.00 per DC watt to under $2.00 per DC watt in just the last two years. This is due to mass production and the ability of asian labor markets to help make solar more affordable. Most people in the industry are not expecting lower prices. We have been put on notice that there will be shortages later on this year and to anticipate higher prices until certain orders are fulfilled.
The second reason is the rebates. The California Solar Initiative started at $2.50 per watt rebate. This rebate has decreased in time and is now only $.65 per watt. By waiting, there may not even be a rebate available!
The third reason is the added appreciation to your home"s value. This may not sound exciting today, but if circumstances dictated a move in this market, the solar would be a great selling point and an option to help you realize a higher sales price. Keep in mind that the total system is only costing you $.60 on the dollar once you account for both the tax credits and rebate.
The fourth reason is inflation. With record spending and printing of money, it is not out of the realm of reason to see higher inflation. Inflation raises the cost of every thing we purchase. This not only includes solar but electricity costs as well. It is always best if you can purchase a big ticket item today and lock in your costs for tomorrow. Similar to purchasing a home. With high utility rates, most consumers see a pay back on their investment of between five and seven years. This is in the 30% internal rate of return on your money! It is hard to get that elsewhere. It also insures your current lifestyle down the road regardless of what energy costs.
Why wait to start saving money and securing your future lifestyle?
Financing is getting better in the current market and if you can lease to own, you may find that it is easier replacing a utility electric payment with a lower lease payment. Especially if the lease allows you to inexpensively buy the system after a few short years.
It’s the eternal question: Buy now or wait? Assuming you want to install solar panels on your roof, should you go for it or hold off for better technology or lower prices? Some consumers are concerned that solar pricing and higher efficiencies are just around the corner. Why then, would consumer's want solar now?
The first reason is pricing has dropped from over $4.00 per DC watt to under $2.00 per DC watt in just the last two years. This is due to mass production and the ability of asian labor markets to help make solar more affordable. Most people in the industry are not expecting lower prices. We have been put on notice that there will be shortages later on this year and to anticipate higher prices until certain orders are fulfilled.
The second reason is the rebates. The California Solar Initiative started at $2.50 per watt rebate. This rebate has decreased in time and is now only $.65 per watt. By waiting, there may not even be a rebate available!
The third reason is the added appreciation to your home"s value. This may not sound exciting today, but if circumstances dictated a move in this market, the solar would be a great selling point and an option to help you realize a higher sales price. Keep in mind that the total system is only costing you $.60 on the dollar once you account for both the tax credits and rebate.
The fourth reason is inflation. With record spending and printing of money, it is not out of the realm of reason to see higher inflation. Inflation raises the cost of every thing we purchase. This not only includes solar but electricity costs as well. It is always best if you can purchase a big ticket item today and lock in your costs for tomorrow. Similar to purchasing a home. With high utility rates, most consumers see a pay back on their investment of between five and seven years. This is in the 30% internal rate of return on your money! It is hard to get that elsewhere. It also insures your current lifestyle down the road regardless of what energy costs.
Why wait to start saving money and securing your future lifestyle?
Financing is getting better in the current market and if you can lease to own, you may find that it is easier replacing a utility electric payment with a lower lease payment. Especially if the lease allows you to inexpensively buy the system after a few short years.
Saturday, April 23, 2011
Study Finds Solar Panels Increase Home Value
Building Equity With Solar
All of the homeowners who have been installing residential solar panels over the last decade may find it was a more practical decision than they thought. The electricity generated has cost less than that coming from the local power company (especially when utility rebates and federal tax credits were accounted for) But if they choose to sell their homes, the price premium they will get for the solar system should let them recoup most if not all of their original capital investment.
That is the conclusion of three researchers at the Lawrence Berkeley National Laboratory, who looked at home sales — both homes with photovoltaic systems and homes without — in California over an eight-and-a-half-year period ending in mid-2009. The abstract of their study states, “the analysis finds strong evidence that California homes with PV systems have sold for a premium over comparable homes without PV systems.”
The premium ranged from $3.90 to $6.40 per watt of capacity, but tended most often to be about $5.50 per watt. This, the study said, “corresponds to a home sales price premium of approximately $17,000 for a relatively new 3,100-watt PV system (the average size of PV systems in the study).”
And the bottom line: “These average sales price premiums appear to be comparable to the investment that homeowners have made to install PV systems in California, which from 2001 through 2009 averaged approximately $5/watt.”
In the Central Valley of California, we experience higher utility bills due to the hot summers. At Nova West Solar, our average size system is over double the 3100 watt PV system. This would boost the resale value to over $35,000!
With current inflation taking off at a record rate, large utility increases are a very real possibility. Whether you purchase a system and receive rebates and tax credits, or choose the 120 mo "lease to own" program, locking in your electric costs is even more important in today's economic environment.
All of the homeowners who have been installing residential solar panels over the last decade may find it was a more practical decision than they thought. The electricity generated has cost less than that coming from the local power company (especially when utility rebates and federal tax credits were accounted for) But if they choose to sell their homes, the price premium they will get for the solar system should let them recoup most if not all of their original capital investment.
That is the conclusion of three researchers at the Lawrence Berkeley National Laboratory, who looked at home sales — both homes with photovoltaic systems and homes without — in California over an eight-and-a-half-year period ending in mid-2009. The abstract of their study states, “the analysis finds strong evidence that California homes with PV systems have sold for a premium over comparable homes without PV systems.”
The premium ranged from $3.90 to $6.40 per watt of capacity, but tended most often to be about $5.50 per watt. This, the study said, “corresponds to a home sales price premium of approximately $17,000 for a relatively new 3,100-watt PV system (the average size of PV systems in the study).”
And the bottom line: “These average sales price premiums appear to be comparable to the investment that homeowners have made to install PV systems in California, which from 2001 through 2009 averaged approximately $5/watt.”
In the Central Valley of California, we experience higher utility bills due to the hot summers. At Nova West Solar, our average size system is over double the 3100 watt PV system. This would boost the resale value to over $35,000!
With current inflation taking off at a record rate, large utility increases are a very real possibility. Whether you purchase a system and receive rebates and tax credits, or choose the 120 mo "lease to own" program, locking in your electric costs is even more important in today's economic environment.
Saturday, April 16, 2011
New Schuco Solar Panels
New Solar Panels from Schuco
Schuco is pleased to announced the arrival of their new Black frame and Black glass panels just a few months ago. These new panels have an amazing 0%-5% tolerance rating. This means they preform very well in in hot climate zones like Fresno. They are also announced the arrival of yet another solar panel. This new solar panel also carries the impressive 0%-5% tolerance rating and also boasts a frame that will support a load of 110 lbs psi! Most solar panels are rated at 35 to 50 lbs per sq inch. Schuco will have the 220watt-235watt panels MADE IN THE USA shortly!
What makes these panels an exceptional value is that they are less expensive (installed) than Chinese made panels. This is due to the additional labor savings utilizing Schuco's alluminum railing and mechanical fastening system. With less time on the job, and more installs per month per crew, costs as well as pricing to consumers goes down! Lower prices, superior warranties and efficiencies all equate into a better system at highly competitive pricing. At Nova West Solar, we believe Pricing Service & Value equals happy customers.
Schuco is pleased to announced the arrival of their new Black frame and Black glass panels just a few months ago. These new panels have an amazing 0%-5% tolerance rating. This means they preform very well in in hot climate zones like Fresno. They are also announced the arrival of yet another solar panel. This new solar panel also carries the impressive 0%-5% tolerance rating and also boasts a frame that will support a load of 110 lbs psi! Most solar panels are rated at 35 to 50 lbs per sq inch. Schuco will have the 220watt-235watt panels MADE IN THE USA shortly!
What makes these panels an exceptional value is that they are less expensive (installed) than Chinese made panels. This is due to the additional labor savings utilizing Schuco's alluminum railing and mechanical fastening system. With less time on the job, and more installs per month per crew, costs as well as pricing to consumers goes down! Lower prices, superior warranties and efficiencies all equate into a better system at highly competitive pricing. At Nova West Solar, we believe Pricing Service & Value equals happy customers.
Monday, April 4, 2011
Nuclear Energy
Nuclear Energy, Solar, and Tsunamis
So much for the “nuclear renaissance,” said Eugene Robinson in The Washington Post. Until last month's earthquake-triggered disaster at Japan’s Fukushima Daiichi nuclear complex, even some prominent environmentalists had begun championing nuclear power, portraying it as a means to end our dependence on foreign oil and “significantly mitigate global warming, all at the same time.” President Obama has promoted the addition of nuclear plants in his new energy policy, and the U.S. Nuclear Regulatory Commission was poised to approve the construction of 20 new reactors. The fact is that “every energy source has risks.” Oil rigs sometimes blow up and cause giant spills; coal mines sometimes collapse, killing miners. Adding more solar and wind power, meanwhile, would require claiming vast tracts of land and seascape for giant windmills and vast arrays of solar panels—and overcoming the fierce resistance of the “not in my backyard” crowd.
But let’s also realistically “weigh the risks of every alternative,” said the Chicago Tribune. Air pollution from burning fossil fuels, scientists say, kills 2 million people a year—far more than “all the nuclear incidents worldwide,” including Chernobyl. The possibility of a nuclear accident will always be with us, and it will always be scary, “but not as scary as a world starved for electricity.” Future nuclear power plants in the United States may never be built.
As one of the cheapest sources of electricity, it's loss will be felt by all rate payers across the country. We should all keep in mind that it wasn't the earthquake that caused the problem, it was the devastation of nuclear reactors as well as the collapse of entire communities (up to five miles inward) that resulted from the earthquake created tsunami. With no back up plan to restore power from an offsite source, the outcome was inevitable.
With State and Federal incentives for solar, now may be an excellent time to compare powering your home with solar versus utilizing PG&E and all of their future increases.
So much for the “nuclear renaissance,” said Eugene Robinson in The Washington Post. Until last month's earthquake-triggered disaster at Japan’s Fukushima Daiichi nuclear complex, even some prominent environmentalists had begun championing nuclear power, portraying it as a means to end our dependence on foreign oil and “significantly mitigate global warming, all at the same time.” President Obama has promoted the addition of nuclear plants in his new energy policy, and the U.S. Nuclear Regulatory Commission was poised to approve the construction of 20 new reactors. The fact is that “every energy source has risks.” Oil rigs sometimes blow up and cause giant spills; coal mines sometimes collapse, killing miners. Adding more solar and wind power, meanwhile, would require claiming vast tracts of land and seascape for giant windmills and vast arrays of solar panels—and overcoming the fierce resistance of the “not in my backyard” crowd.
But let’s also realistically “weigh the risks of every alternative,” said the Chicago Tribune. Air pollution from burning fossil fuels, scientists say, kills 2 million people a year—far more than “all the nuclear incidents worldwide,” including Chernobyl. The possibility of a nuclear accident will always be with us, and it will always be scary, “but not as scary as a world starved for electricity.” Future nuclear power plants in the United States may never be built.
As one of the cheapest sources of electricity, it's loss will be felt by all rate payers across the country. We should all keep in mind that it wasn't the earthquake that caused the problem, it was the devastation of nuclear reactors as well as the collapse of entire communities (up to five miles inward) that resulted from the earthquake created tsunami. With no back up plan to restore power from an offsite source, the outcome was inevitable.
With State and Federal incentives for solar, now may be an excellent time to compare powering your home with solar versus utilizing PG&E and all of their future increases.
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