Property Accessed Clean Energy, or PACE, is a way for homeowners and businesses to finance renewable energy and energy efficiency upgrades through an established bond program at the City, County or State level.  The low-interest loans/bonds are typically easier to obtain and cheaper than going to a bank on your own.  The PACE loans get paid back as a tax assessment.  Most programs allow for building owners to opt for a 20- year assessment on their property taxes.  If the home or business is sold, the new owner continues the payments.
 
Several states including Missouri have jumped on the PACE band wagon.  Governor Nixon signed the PACE legislation on July 12th enabling Cities and Counties to establish special Clean Energy Development Boards with the authority to issue the low-interest bonds.  Twenty three other states as well as several cities and counties have recognized the immediate and long-term benefits of providing for energy upgrades upfront.  By helping to spread out the initial investment communities see reduced energy consumption, economic influx, job creation as well as decreases in carbon and other pollutants.  Building owners are able to improve their property and the occupants in homes and businesses are provided better living spaces.  The program requires that the monthly energy savings must be more than the assessment, which reduces the cost of ownership immediately thereby improving the cash flow of participants.
 
Sounds like a win- win situation all around right? 

Unfortunately the PACE program has hit a snag.  Federally backed mortgage companies Fannie Mae and Freddie Mac have argued that PACE programs put the security interest of mortgage companies at risk as the loans take on a first or senior to the mortgage.  All is not lost however; The Federal Housing Financing Agency, which oversees Fannie May & Freddie Mac, says they are working to resolve the issue and legislation has been introduced by Congressmen Michael Thompson to protect PACE (H.R. 5766).  Many see the issue as a matter of a states right to utilize assessment districts.  You can learn more about the fight for PACE and what you can do to help to ensure that it gets back on track by visiting:  http://pacenow.org  and http://votesolar.org

Business leaders, including The Energy Savings Store and representatives from 17 counties and 15 cities attended a recent training sponsored by Renew Missouri to learn more about how to establish a PACE program in their communities.  Many are moving ahead laying the ground work to establish their Clean Energy Development Boards so they will be ready to once the mortgage issue is resolved.  Contact your local municipality or county government and ask if they are planning to establish a PACE program.

Antonio's New Solar Panels

My good friend, Antonio Cutolo-Ring, finally took the plunge and installed a 3.2 kW solar pv array on his home in Weston, MO.  The array is grid-tied and we (The Energy Savings Store) used 14 - 225 watt Sunpower panels with Enphase micro- inverters (because of shading issues).  Antonio e-mailed me after the first few days: "Yes, everything seems to be working well.  I know the solar panels won't be always be producing as much electricity as they have the last three days, but it looks to me like that if they did and I don't use any more electricity than last year that I'd be producing as much electricity as I use!  Pretty cool." 

Antonio's home is very energy efficient already and we estimate it will produce about 85% of his electricity needs. 

In addition to the 30% federal tax credit, he was able to take advantage of KCP&L's new $2/watt solar rebate - cutting his installation cost in half.  Antonio and I are both on the board of Concerned Citizens of Platte County together - we work on environmental and health issues.  He told me "I'm very pleased to have finally been able to put my money where my mouth has been for so long!" 

A note on the photo: that's Taneasha Bledsoe - our new Staff Engineer looking so cool on the roof.

Solar became the solution for Ray and Kathy Baisch after seeing their electric rates increase by over 30% in the last three years.  Located in Lee’s Summit, Missouri, the Baisch’s had been considering a solar-powered electric system for years.  The couple got serious about making the investment when they learned that KCP&L was offering a new solar rebate.  The new rebate was a result of Proposition C that Missourians overwhelmingly passed in 2008 (read more here). The $2/watt rebate covers about 25% of the price of a solar system.  Combining this incentive with the 30% Federal tax credit - and nearly half of the cost is covered.

After meeting with a Renewable Energy Consultant at The Energy Savings Store, the couple decided to purchase a 4.14 KW system.  The solar energy system will offset nearly 90% of their energy usage.  The system was placed in service the first week of January. “The Baisch’s may be the first rebate recipients in the state,”  said Roland Maliwat, Manager of Sustainability at KCP&L.  “We supported Prop C and are very happy to see it result in solar installations for our customers.”

Net Metering
Not only are Ray and Kathy excited about being the first KCP&L customers to receive the rebate, they are also eagerly awaiting the possibility of watching their electric meter spin backwards when their system is producing more than they need.  In addition to the rebate the utility company will allow the couple to "net meter."  With "net metering" the Baisch’s will be able to accumulate credits for months that their system produces more than they need.  When they have months that they use more electricity than their system produces they will be able to use the accumulated credits from the prior month.

Over the course of the year the Baisch’s will end up paying very little on their electric bills. They are looking forward to a day in the near future where the energy savings will have paid for the cost of the system - after that Ray and Kathy can expect decades of free electricity.

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.