Rebates, Credits, Incentives, Tax Breaks and Financing
PASSIVE SOLAR TAX CREDITS:
OREGON
The Oregon Department of Energy (ODOE) provides a $0.60 per kWh saved (up to $1,500 tax credit) for the use of passive solar design. ODOE has established design criteria (sort of a prescriptive path) to qualify designs or you may choose to show energy saving benefits of the designs through energy modeling with approved software. You can learn more at ODOE website:
http://www.oregon.gov/ENERGY/RENEW/Solar/docs/SolarSpaceHeatingSunChart.pdf
To qualify for Oregon's passive solar tax credit the passive solar features must be capable of reducing space heating needs by at least 20 percent and not increase the need for cooling.
UTAH
Residential: The State of Utah has enacted an individual incomes tax credit for residential passive solar systems up to a maximum credit of $2000 per residential unit. The revised tax credit is applicable to systems placed in service on or after January 1, 2007. Taxpayers wishing to use this tax credit must first apply through the Utah State Energy Program before claiming the tax credit against their Utah state taxes. The residential credit is nonrefundable, but unused credit may be carried over up to four years. A non-business entity that leases a residential system is eligible for the credit and may use the credit for no more than seven years from the initiation of the lease.
Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.
A builder can take a tax credit for the installation of a renewable energy system on a residential unit.
Commercial:
The individual income tax credit for commercial systems, which is structured as a refundable credit, is 10% of the reasonable installed costs up to $50,000. Eligible commercial systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and geothermal electricity; and biomass systems. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible. Additional information can be had at http://geology.utah.gov/sep/incentives/rincentives.htm#retaxcred
ARIZONA
Arizona's Solar Energy Credit is available to individual taxpayers who install a solar or wind energy device at the taxpayer's Arizona residence. The credit is allowed against the taxpayer's personal income tax in the amount of 25% of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed. The credit is claimed in the year of installation. If the amount of the credit exceeds a taxpayer’s liability in a certain year, the unused portion of the credit may be carried forward for up to five years.
Qualifying technologies include solar domestic water heating systems, solar swimming pool and spa heating systems, photovoltaic systems, photovoltaic phones and street lights, passive solar building systems (trombe walls, thermal mass, etc.), solar daylighting systems (excluding conventional skylights), wind turbines, and wind-powered pumps. More information can be had at: http://www.rc.state.az.us/
NEW JERSEY
New Jersey offers a full exemption from the state's sales tax (currently 7%) for all solar energy equipment. This exemption is available to all taxpayers. All major types solar energy equipment, including equipment for passive solar design, are considered eligible for the exemption. More information can be had at : http://www.bpu.state.nj.us
KENTUCKY
In April 2008, Kentucky enacted legislation (H.B. 2) establishing a 30% state income tax credit for certain solar, wind and geothermal installations on single or multi-family residences and on commercial property. Kentucky corporate taxpayers may take the 30% credit on any of the following equipment installed on commercial property:
- Active or passive solar space-heating systems
- Combined active solar space-heating and water-heating systems
- Solar hot water systems. More information can be had at: http://revenue.ky.gov/
SOLAR ACCESS LAWS FOR PASSIVE SOLAR:
CALIFORNIA
The State of California does not have a rebate for passive solar, but it is providing an incentive in the form of a solar access law. California’s Civil Code (801.5) ensures that neighbors may voluntarily sign solar easements to ensure that proper sunlight is available to those who operate solar energy systems. California’s Government Code (65850.5) provides that subdivisions may include solar easements applicable to all plots within the subdivision in their plans. California’s Public Resources Code (25980) contains the Solar Shade Control Act, which encourages the use of trees and other natural shading except in cases where the shading may interfere with the use of active and passive solar systems on adjacent properties. Specifically, the law provides that a tree or shrub cannot cast a shadow which covers more than 10 percent of a solar collector's absorption area at any one time between the hours of 10 a.m. and 2 p.m. if the tree or shrub is planted after the installation of the solar collector.
SB 1399 of 2008 amended the Public Resources Code to exempt trees and shrubs planted prior to the installation of a solar system. Also exempted are trees and shrubs that are subject to a local ordinance, or the replacement of trees or shrubs that had been growing prior to the installation of the solar device.
INDIANA
The State of Indiana does not have a rebate for passive solar, but is providing both covenant restrictions and solar-easement provisions. The state's covenant restrictions prevent planning and zoning authorities from prohibiting or unreasonably restricting the use of solar energy. Indiana's solar-easement provisions are similar to those in many other states. Although they do not create an automatic right to sunlight, they allow parties to voluntarily enter into solar-easement contracts which are enforceable by law. Passive-solar structures are explicitly included in the type of solar-collection equipment that may be protected by solar easements.
MARYLAND
Maryland has a long-standing law protecting the rights of solar energy system owners. The original law prohibited restrictive land use covenants that imposed unreasonable limitations on the installation of solar collection panels on the roof or exterior walls of improvements and which became effective after July 1, 1980 (grandfathering date removed in 2008). This statute and its 2008 amendments do not apply to a restrictive covenant on historic property that is listed by the Maryland Inventory of Historic Properties or by the Maryland Register of Historic Properties. Maryland also provides for the creation of easement agreements for a variety of purposes, including the "preservation of exposure of solar energy devices". While similar provisions exist as stand alone laws in some states, in Maryland they are included under the more general heading of conservation easements.
The Maryland Real Property Code was amended in April 2008 by H.B. 117 to provide much more detailed protections for solar energy systems and to expand upon the required content of solar easement agreements. Under the new law (effective October 1, 2008) restrictions on use that act to significantly increase the cost of a solar collector system or significantly decrease its efficiency are prohibited. The definition of "restrictions on use" includes any covenant, restriction, or condition contained in a deed; declaration; contract; bylaws of a homeowners or condominium association; security instrument; and any other instrument affecting the transfer or sale of real property or interest in real property. The only condition for this protection is that the owner own or have rights for the exclusive use of the roof or exterior walls of a structure.
In addition to the added detail, other notable changes to the law are: (1) the removal of the July 1, 1980 grandfathering date for existing restrictive covenants; and (2) the replacement of the term "solar collection panels" with "solar collector systems". Solar collection systems are defined to include solar devices primarily used to collect, store, and distribute solar energy for electricity generation, space heating, space cooling, and water heating. This definition appears to include technologies such as passive solar space heating and solar pool heating.
Under H.B. 117 the right of property owners to enter into solar easement agreements is affirmed. Written instruments for this purpose are required to contain a description of the dimensions of the easement (e.g., vertical and horizontal angles), restrictions on potential impairments (e.g., vegetation, structures, etc.), and terms for revision or termination. More information can be had at: http://www.energy.state.md.us/
NEW MEXICO
New Mexico's Solar Rights and Solar Recordation Acts (both contained in NMSA § 47-3) allow property owners to create solar easements for the purpose of protecting and maintaining proper access to sunlight. The Solar Rights Act established the right to use solar energy as a property right. The solar right prevents neighboring property owners from constructing new buildings or planting new trees which would block their access to the sun.
FINANCING
county of sonoma (ca)
The County of Sonoma (CA) Energy Independence Program is allowing home owners to finance passive solar projects through a voluntary assessment. These assessments are attached to the property, not the owner, and will be paid back through the property tax system over time, making the program not only energy efficient but also affordable.
The program allows you to finance up to 10% of the value of the property and improvements. They are charging a 7% interest rate.
The advantage to the home owner is its ease, simplicity and non-personal nature of the loan:
- A credit check is not done and unlike bank loans, assessment financing is not restricted by a rigid formula related to value
- Approval is not based on your annual income
- Assessments do not appear on your credit report
- Assessments are paid semi-annually along with your property taxes
- Assessments are passed to subsequent property owners, so you don’t have to pay them off if you sell.
- The only requirements are that you be up to date on your mortgage loan payments and that the property is not in foreclosure.
The program originally started with a $100 million seed money grant of which $60 million is still available. Program employees are hopeful that the program will be self-perpetuating and will be able to make new loans based on the cash flow from old loan payments.
For more information, contact: http://www.sonomacountyenergy.orgFHA Energy Efficient Mortgages
FHA Energy Efficient Mortgages (EEMs) allow lenders to add 100 percent of the additional cost of cost-effective energy efficiency improvements to an already approved mortgage loan (as long as the additional costs do not exceed $4000 or 5 percent of the value of the home, up to a maximum of $8000, whichever is greater). No additional down payment is required, and the FHA loan limits won’t interfere with the process of obtaining the EEM. Applications for an FHA EEM may be submitted to the local HUD Field Office through an FHA-approved lending institution. HUD has a searchable list of approved lenders 
. Information about the FHA EEM can be found on FHA’s web site 
. Additional information is available from HUD’s Office of Single Family Housing by calling (800) 569-4287. There is also a fact sheet about FHA's EEM 
(70KB).
PROPERTY TAX EXEMPTION
CONNECTICUT
Connecticut provides a property tax exemption for "Class I" renewable energy systems and hydropower facilities that generate electricity for private residential use. The exemption is available for systems installed on or after October 1, 2007, that serve single-family homes or multi-family dwellings limited to four units. In addition, "any passive or active solar water or space heating system or geothermal energy resource" is exempt from property taxes, regardless of the type of facility the system serves.
Connecticut municipalities are also authorized, but not required, to offer a property tax exemption for (1) the amount by which the assessed valuation of an active solar energy heating or cooling system installed after October 1, 1976, and before October 1, 2006, exceeds the assessed value of a conventional heating or cooling system, and (2) the amount by which the assessed valuation of a passive or hybrid solar energy heating or cooling system installed on or after April 20, 1977, exceeds the valuation at which such real property would be assessed if built using conventional construction techniques. Such assessments are in effect for the first 15 years following construction or addition to a building. More information can be had at: http://www.opm.state.ct.us
OTHER (NON-PASSIVE SOLAR) ENERGY SAVING INCENTIVES:
Passive solar design has been left out of the incentive programs of other jurisdictions, but many of the energy saving features usually built along side passive solar are being supported. The following information is localized for Marin County, California, but similar incentives may be available in your area and that information can be accessed by CLICKING ON THIS LINK::
FEDERAL INCENTIVES:
Tax credits for photovoltaics
& solar hot water: Up to $3000
Tax credits for other energy
efficient measures: Up to $1500
STATE INCENTIVES:
Solar hot water - $1500
Installing a whole house fan - $100
Installing variable speed fan in heating system - $50
Energy-efficient furnace - $300
Duct sealing - $400
Energy-efficient dishwasher - $50
Cool roof - $200 per 1000 SF
Attic and wall insulation - $150 per 1000 SF
Refrigerator, freezer - $35
Solar energy systems are not included in property tax appraisals and will not increase your property taxes, under California Taxation and Revenue Code Section 73 (legislation may sunset in 2006).
MARIN COUNTY, CA INCENTIVES:
Fast-track building permit processing & waiver of T-24 energy review fee when your energy budget is exceeded by 20%
Photovoltaic systems - $500
Solar domestic hot water heater - $300
Solar pool heater - $200
Installation of a clean burning EPA-rated wood burning appliance or removal of a non-EPA-rated appliance - $75
CITY OF MILL VALLEY
Some permit fees waived.
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