California Solar Initiative Thermal Program Authorizes $350 Million in Incentives
Rebate Program Expected to Ignite Solar Thermal Market in California, where SunWater Solar is an Established Leader
SAN FRANCISCO and RICHMOND, Calif. – January 25, 2010 – The California Public Utilities Commission (CPUC) last week approved the California Solar Initiative (CSI) Thermal Program, which authorizes $350 million in rebates for businesses and individuals that install solar thermal systems. The program will energize the state’s solar thermal market by making it cheaper and easier for businesses and property owners to purchase solar thermal systems.
“These systems can be cost-effective for ratepayers, while helping to displace both electricity and natural gas usage in new and existing homes and businesses,” said Commissioner Dian M. Grueneich of the CPUC. “Thus a focused, cost-effective program to improve the market for this technology can serve as a key step in our path to zero net energy.”
Solar thermal systems use the sun’s energy, rather than fossil fuels, to heat water and other fluids. Professionally installed systems can significantly reduce site-generated greenhouse gas emissions and enable long-term ROI through decreased utility bills. Solar thermal systems are ideal investments for businesses and facilities that require large quantities of hot water or other fluids, such as multifamily dwellings, industrial facilities and swimming pools.
“The solar thermal rebate program is fantastic news for businesses that want to heat water cheaply and go green at the same time,” said Justin Weil, a nationally known expert on solar thermal and president of leading U.S. solar thermal company SunWater Solar. “To maximize a system’s ROI though, businesses need a knowledgeable partner with the experience to know what type of solar thermal system will best meet their requirements.”
With a certified, experienced staff and a solid record of improving the bottom line for commercial clients, SunWater Solar can manage every phase of a solar thermal implementation, from value analysis, to system design, to system installation and maintenance. Because SunWater Solar focuses exclusively on solar thermal technology, the company can provide comprehensive support to businesses implementing solar thermal technology for a wide variety of applications, including domestic hot water, process heating and pool heating.
In addition to the $350 million in rebates authorized by the CSI Thermal Program, there are a variety of other financial incentives and structures in place that encourage solar thermal adoption, both within California and throughout the United States. These rebates, tax benefits and financing options include:
- Power Purchase Agreements (PPA), in which a third party funds the installation of a solar thermal system and the client pays a reduced rate for utilities
- The Investment Tax Credit (ITC), a 30% federal tax credit
- Under the federal Modified Accelerated Cost-Recovery System (MACRS), qualified businesses may recover investments in solar thermal through depreciation deductions
- Property Assessed Clean Energy (PACE) programs, which allow municipalities to offer financing for solar thermal systems through property taxes
- Financing is available from lenders who offer solar loans with no money down and low interest rates
- Rebates offered by many state and local governments
About SunWater Solar
SunWater Solar designs, installs and services solar thermal systems that lower utility bills, reduce greenhouse gas emissions and help clients meet sustainability requirements. From system design to project management, SunWater Solar has implemented solar thermal technology for a variety of applications, including domestic hot water heating, process heating and pool heating. Founded in 2006 and based in Richmond, California, SunWater Solar serves a wide variety of customers and focuses exclusively on solar thermal technology.
Solar hot water is now a better deal than ever thanks to the California Energy Commission (CEC). On July 28 the CEC announced an expansion of the Cash for Appliances rebate program, which offers incentives for solar water heaters. Beginning July 29, consumers who purchase a qualifying solar water heater, apply within 120 days of the purchase and properly recycle their old water heater will be eligible for a $300-$750 rebate. Consumers or contractors can submit the rebate application, with the consumer receiving the check in six to eight weeks. Rebates are awarded on a first-come, first-served basis, and will last until funds are exhausted.
The California Public Utility Commission 