We were more than a little pleased when Proposition C  - the Clean Energy Initiative - passed last year. The Energy Savings Store and Susan Brown had been actively working to get this legislation passed for years. It is such good news for all of us!

We are going to see the first ever utility rebates for solar photovoltaic (PV) installations on Missouri homes and businesses starting January 1st, 2010.

These new rebates, in combination with the federal tax credit, can reduce the cost of a system by over 50%.  Instead of a 20 year payback, many Missourians can now see a 10 year payoff of their initial investment using conservative assumptions! Wow.

It's not always an easy process to identify what rebates and credits you might be eligible for, and then wade through the paperwork needed to file for them. Rest assured that we want our clients to every financial incentive possible. Our staff have become experts on this and we'll walk you through every step of the process.

Here is a summary of the incentives available for solar PV in Missouri:

• $2.00 per watt solar rebate (capped at $50,000) for KCP&L and Ameren customers in Missouri only starting January 1, 2010
• 30% federal tax credit
• Net metering – you can "store" excess solar energy on the grid at any time during the billing cycle, and receive a credit for any net excess at the end of the month.

These incentives apply to both residential and commercial customers.  Businesses can take advantage of even more perks:

• The 30% federal tax credit can be applied for as a grant in 2010
• The 5-year accelerated depreciation is expected to be extended into 2010

Here is an example of how incentives can lower the cost of a residential solar PV system. Let’s assume you are buying a small 1kW solar array (about 6 panels):

Proposition C is designed to require that a certain percent (15% by 2021) of our utility power come from renewable sources, like wind and solar.  This is called a Renewable Portfolio Standard (RPS).   Investor owned utilities (KCP&L and Ameren) can choose to build wind and solar farms or they can purchase Renewable Energy Credits (RECs) from individuals that install solar and wind systems on their homes or businesses.  The utility companies can then use those credits toward compliance with the RPS.

The will create a market that will drive pricing for RECs in Missouri.  Your utility may pay an up-front lump sum for RECs from smaller systems, or may buy the RECs as the energy is produced over the life of the equipment for larger systems.  This market will be established once the Missouri Public Service Commission (PSC) finishes the rulemaking process.  The PSC will be finalizing the draft rule within the next few weeks.  After a 30 day comment period and a public hearing, the Commissioners will produce a final rule.

So what do you do if you want to install solar on your home or business and take advantage of the new programs? Talk to us. We make this process as easy as possible and we make sure our customers get every financial incentive possible.  You may also want to check the Missouri Solar Energy Industry Association (MOSEIA) website. MOSEIA members report on the rulemaking process, monitor the industry, and train installers. Bob Solger is a founding member and a key member of the board. You may also consult a tax professional to understand how the tax implications will affect you.

Find  listings of all federal, state, local and utility rebates, credits, grants and loans at the Database of State Incentives for Renewables & Efficiency (www.dsireusa.org).

Susan Brown has worked diligently to bring clean energy to Missourians. She now wants to make sure you get every available financial incentive for installing a TESS solar or wind energy system.  Stop by our showroom, call 816-877-6760, or email SusanB@TheEnergySavingsStore.com.