For active reservations, guidelines often reduce rebate with system additions below current rebate level
Example: System additions are treated by recalculating the entire system capacity at current (lower) rebate and given the higher of this or the original amount - this often gives no additional rebate for a system addition
Applying current rebate level for incremental portions (simplifies calculation; removes penalty)
Adding language wind size limit is also less than 30kW.
Remove R5 section in the R1 form
Asking for payment assignment on the R1 application form is not necessary. In addition, the same information is asked at payment claim time which is more appropriate. Causes confusion and inconvenience.
New federal tax credits provided through the Energy Policy Act of 2005 can provide substantial benefit for commercial and small residential program participants
Kema, our contractor, analyzed various scenarios to consider rebate implications and is summarized here
This will be available at a later date for release and discussion, but we are limiting our discussion today
PV Rebate, Modeling Assumptions 7% Nominal Disc. Rate 25 years Project Life 15-year term, 7% interest rate Loan Details 34% federal, 8.84% state Corporate Tax Rates 28% federal, 9.3% state Residential Tax Rates $0.15/kWh, with nominal escalation of 3%/yr Avoided Electr. Cost 1500 kWh/kW (17.1% capacity factor) System Performance 1 kW: $10,000 ($10/W); 2 kW: $18,000 ($9/W) 6 kW: $51,000 ($8.5/W); 30 kW: $240,000 ($8/W) System Cost Res.: 30% ($2000 cap) Corp.: 30% (no cap) Res.: 0% Corp.: 10% (no cap) Federal Tax Credit 0% 7.5% for all State Tax Credit solved for $2.60/W CBI Amount EPAct 2005 Case Baseline Case
CBI Results (Cash-Financed, Taxable) A. Federal ITC reduces basis for both the state ITC and state depreciation B. Federal ITC reduces basis for the state ITC, but not for state depreciation C. F ederal ITC doesn’t reduce basis for state ITC, but does reduce basis for state depreciation D. Federal ITC doesn’t reduce basis for either the state ITC or state depreciation 0.99 0.90 D 1.09 1.00 C 0.94 0.85 B 2.60 2.60 1.03 0.95 2.58 1.77 0.57 A $/W CBI that creates after-tax parity with Baseline all sizes all sizes 30 kW 6 kW 6 kW 2 kW 1 kW Syst. Size Subject to AMT Tax- Exempt Corporate Residential Customer Type Capacity-Based Incentive (CBI) Incentive Type