Community resources about solar
Choosing between funding models
Choosing between solar array options
Showing posts with label Resources. Show all posts
Showing posts with label Resources. Show all posts
Community resources about solar
Church Building Energy & Environmental Loan Program This United Church of Christ loan program is designed to provide churches with low cost financing for capital projects that result in increased energy efficiency, the use of renewable energy, and/or reduced environmental impact of the church building. Program provides up to $100K of financing over a 5-7 yr term at below market rates. One can usually get approval within 30 days of receiving completed application forms.
Guidelines for Determining The Tax Credit for Investing in Renewable Energy Property This NC Department of Revenue document describes the tax credits available through December 31, 2015. Or consult the enacted legislation.
NC Clean Energy Technology Center (formerly the NC Solar Center) A great resource for independent information about all kinds of clean energy. Associated with NC State University.
NCIPL's Solar Clearinghouse: Resources for Congregations interested in Solar Panel Projects This site includes information on financing options, a best practices guide, and some successful examples.
NC WARN's Solarize Triad has a great one page fact sheet on using the donation model to fund solar on nonprofits.
Solar Energy Industries Association is the U.S. trade association representing companies which "research, manufacture, distribute, finance, and build solar projects domestically and abroad." Keep up to date with what is new or find answers to your questions here.
Solar Best Practices for Congregations This document was primarily created by members of Temple Emanuel Greensboro and based on their successful solar panel project, completed in 2011. Contributions are also from members of Myers Park Baptist, Charlotte and the Pastor of 1st Congregational United Church of Christ, Asheville.
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| ARCHIVAL NOTE: The NC tax credit has expired. |
Guidelines for Determining The Tax Credit for Investing in Renewable Energy Property This NC Department of Revenue document describes the tax credits available through December 31, 2015. Or consult the enacted legislation.
NC Clean Energy Technology Center (formerly the NC Solar Center) A great resource for independent information about all kinds of clean energy. Associated with NC State University.
NCIPL's Solar Clearinghouse: Resources for Congregations interested in Solar Panel Projects This site includes information on financing options, a best practices guide, and some successful examples.
 |
| ARCHIVAL NOTE: The NC tax credit has expired. |
NC WARN's Solarize Triad has a great one page fact sheet on using the donation model to fund solar on nonprofits.
Solar Energy Industries Association is the U.S. trade association representing companies which "research, manufacture, distribute, finance, and build solar projects domestically and abroad." Keep up to date with what is new or find answers to your questions here.
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| ARCHIVAL NOTE: The guide was created after we completed our array, but we received advice, encouragement, and a seed grant from Temple Emanuel. |
Solar Best Practices for Congregations This document was primarily created by members of Temple Emanuel Greensboro and based on their successful solar panel project, completed in 2011. Contributions are also from members of Myers Park Baptist, Charlotte and the Pastor of 1st Congregational United Church of Christ, Asheville.
Choosing between funding models
Funding by Limited Liability Corporation (LLC) vs. Donations
For us, the bottom line was that we didn't think we had enough potential investors who had passive income (typically income from rental property). Here's the scoop on LLC vs. donations.
LLC:
• Investors get NC and Federal tax credits; pay back from selling the power to Duke Energy Progress, and from equipment depreciation.
• Investors must have “passive income” (typically rental income) to take advantage of the NC and Federal tax credits and the equipment deductions.
• Typically, LLC is maintained for ~ 6 years, and investors recoup ~ 90% of their investment.
• There are costs to establish and run the LLC: CPA to initiate LLC tax credits and deductions, insurance for the system since it is not part of CUCC, annual cost of LLC, annual cost to write up tax deductions.
• Initially the installation would be “buy all, sell all” to get financial return for investors; then we would likely switch to net metering to allow CUCC to take the value. There would be a cost (~$2500) for switching to net metering later.
• CUCC would get energy cost savings after the LLC partners donate the system to CUCC.
Donation:
First, a big thank you to Temple Emanuel and the NC Clean Energy Technology Center, from whom we learned about funding our solar panels through donations.
• Each donor may be eligible to take a 35% NC tax credit, and the standard Federal charitable donation tax deduction (depends on the donor's tax situation- check with your tax advisor).
ARCHIVAL NOTE: The tax credit has expired.
• No costs to run the funding system other than printing the receipt for the donation that the donor can use against their tax return.
• We would likely use net metering from day one.
• CUCC would get energy cost savings from day one.
Other funding options
Third party payer:
The NC General Assembly is currently debating whether to allow third party payers to fund and own solar arrays. At the time of our decision making, this was not an option.
Loan funds:
Our denomination (the United Church of Christ) has a loan program for environmentally friendly improvement projects of congregations and UCC organizations, the Cornerstone Fund EcoLoan program. We considered taking out a loan if we didn't raise quite enough for our array through donations. However in 2014 our congregation purchased some affordable rental housing using a combination of loans, donations, and a mortgage; we were reluctant to ask the congregation to take on additional debt.
For us, the bottom line was that we didn't think we had enough potential investors who had passive income (typically income from rental property). Here's the scoop on LLC vs. donations.
LLC:
• Investors get NC and Federal tax credits; pay back from selling the power to Duke Energy Progress, and from equipment depreciation.
• Investors must have “passive income” (typically rental income) to take advantage of the NC and Federal tax credits and the equipment deductions.
• Typically, LLC is maintained for ~ 6 years, and investors recoup ~ 90% of their investment.
• There are costs to establish and run the LLC: CPA to initiate LLC tax credits and deductions, insurance for the system since it is not part of CUCC, annual cost of LLC, annual cost to write up tax deductions.
• Initially the installation would be “buy all, sell all” to get financial return for investors; then we would likely switch to net metering to allow CUCC to take the value. There would be a cost (~$2500) for switching to net metering later.
• CUCC would get energy cost savings after the LLC partners donate the system to CUCC.
Donation:
 |
| Solar panels on the roof of Temple Emanuel in Greensboro |
• Each donor may be eligible to take a 35% NC tax credit, and the standard Federal charitable donation tax deduction (depends on the donor's tax situation- check with your tax advisor).
ARCHIVAL NOTE: The tax credit has expired.
• No costs to run the funding system other than printing the receipt for the donation that the donor can use against their tax return.
• We would likely use net metering from day one.
• CUCC would get energy cost savings from day one.
Other funding options
Third party payer:
The NC General Assembly is currently debating whether to allow third party payers to fund and own solar arrays. At the time of our decision making, this was not an option.
Loan funds:
Our denomination (the United Church of Christ) has a loan program for environmentally friendly improvement projects of congregations and UCC organizations, the Cornerstone Fund EcoLoan program. We considered taking out a loan if we didn't raise quite enough for our array through donations. However in 2014 our congregation purchased some affordable rental housing using a combination of loans, donations, and a mortgage; we were reluctant to ask the congregation to take on additional debt.
Choosing between solar array options
The following are our informal notes on a variety of options which we considered as we narrowed down which system to install and how to finance the purchase. Please don't take our word for it; do your own research before making any decisions.
Deciding between bids – overall philosophical question
Is the goal to install the most economical panels or are there other goals (ex. maximizing # of kwHs/$ saved by the nonprofit, doing the most for the environment, preventing the most CO2 from the atmosphere)? Are there constraints on your options? (ex. least effort required of the nonprofit, economic justice criteria, aesthetics)
Reliability - the importance of your inverter
Because solar panels are extremely reliable, the inverters become an important variable in the reliability of the system. There is substantial variability in reliability between brands of inverters, though not much difference in how much energy is produced. We were advised by several independent experts and interested lay people to go with a name brand inverter, for example, SMA (the largest producer) and Xantrex. (Note: each website describes warranties on their products)
Deciding between bids – overall philosophical question
Is the goal to install the most economical panels or are there other goals (ex. maximizing # of kwHs/$ saved by the nonprofit, doing the most for the environment, preventing the most CO2 from the atmosphere)? Are there constraints on your options? (ex. least effort required of the nonprofit, economic justice criteria, aesthetics)
Reliability - the importance of your inverter
Because solar panels are extremely reliable, the inverters become an important variable in the reliability of the system. There is substantial variability in reliability between brands of inverters, though not much difference in how much energy is produced. We were advised by several independent experts and interested lay people to go with a name brand inverter, for example, SMA (the largest producer) and Xantrex. (Note: each website describes warranties on their products)
All inverters fail and need to be replaced in about 10 years.
Current replacement cost: String inverters are about 20-25c/watt of the installation cost. Microinverters are about 40-50c/watt of the installation cost.
Microinverters vs. string inverters
Microinverters are better if there will be any shade on any of the panels. When panels are in series (one inverter per array or array row), shade on one panel decreases the production of the entire array/array row. If there is no shade on the array, then the advantage of microinverters is less significant.
Microinverters are better if there will be any shade on any of the panels. When panels are in series (one inverter per array or array row), shade on one panel decreases the production of the entire array/array row. If there is no shade on the array, then the advantage of microinverters is less significant.
Microinverters are better if
one goal of the installation is to maximize generation.
Microinverters are better if
there is a failure. For a single
string, the failure of one panel brings down the array. However, we would need to keep an eye
on production to look for decreases in power generation which would signify the
failure of one panel/microinvertor.
Such failures are less dramatic and therefore easier to miss than the
failure of the entire array.
A string inverter has the
advantage that one replaces it without having to worry about compatibility with
other inverters in the system.
With changes in the technology, there could be a problem replacing one
microinverter with a new, compatible unit because the original technology could
become obsolete. They don’t
anticipate this would be a problem, but it is theoretically possible.
Maintenance and warranty
The primary maintenance expense is the replacement of the inverter(s) at 10-15 years. There are unlikely to be other expenses.
The primary maintenance expense is the replacement of the inverter(s) at 10-15 years. There are unlikely to be other expenses.
On a small array, there is no need to wash each panel quarterly. Do blow off leaves and pine straw if they clump anywhere on the array, this is most likely to happen at the edge where sliding debris may cluster. With a large array, quarterly maintenance and measurement makes sense.
Do a visual inspection from time to time to see if anything looks odd – for instance, bees nesting in the inverter box.
Some people install screens around the perimeter of the array to keep squirrels from going underneath and chewing wires. The need for this is determined by how high the panels are above the roof. Ask the installer.
A 2-5 year warranty on installation will cover the initial period. If equipment is going to fail, it is likely to be in the first 2 years. If thermal expansion is going to cause wires to break because they were strung too tight, this will happen after 2 summers.
Solar hot water solar panels have a spotty history of reliability. When people say they have had trouble with solar, they usually mean solar hot water. Solar photovoltaic panels have a great track record.
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