Connecticut Business Owners Find $3MM available for Solar Energy - CCEF accepting applications

CCEF will reopen its Commercial Solar PV Program for applications to deploy the $3.0 million dollars of ARRA money allocated for solar PV. We expect to announce the start of this program shortly. Applications for public, not for profit and for profit installations will be accepted. ARRA requirements will apply.

A countless number of small and mid-size businesses have gone solar, too. This growing commercial demand may in part explain why the solar sector has seen such phenomenal growth in recent years. In 2007, the global market for photovoltaics (PV) grew over 60 percent. With Connecticut’s electric rates second only to Hawaii – business should learn more now.

In addition, Treasury grants are now available for commercial solar installations. Instead of taking the 30-percent tax credit, your business can instead opt to receive a cash grant equal to 30 percent of installed costs of a solar PV system. This grant option has been made possible by the federal stimulus package that was passed in February 2009. See the Treasury Department website for full details on the American Recovery and Reinvestment Act. Sundoor Solar on Research Parkway in Meriden Ct can help with the paperwork.

We raced through the final version of The American Recovery and Reinvestment Act of 2009 (ARRA) hoping for dramatic changes that will accelerate the solar electric market and create jobs in the U.S. near term. And while there are certainly a number of provisions that will get the industry back on track, we are left wondering what the real impact will be.

Potential Commercial Solar Customers

For business, the attractiveness of the 30% ITC incentive, passed in the October 2008 stimulus package, has changed radically as profit expectations have moved downward over the past few months. Without profits, tax credits are irrelevant. ARRAcreates a new 30% Renewable Energy Grant program, which is like a rebate, to be administered by the Department of Treasury. The expectation is that the grant, which can be taken by any for-profit business, will help restart and expand the market.

ARRA grants will not be included in the federal gross income of the taxable entity, but it is unclear whether the federal grant will be treated as taxable income in the states. All of us should be working to understand the facts in our state as this will potentially have an unintended negative impact on system cost and payback. Businesses may be able to recognize the federal grant as capital and lessen any immediate state tax impact if they do not use the grant proceeds for current business activities.



A benefit provided by the stimulus package is the ability for system owners to receive the full federal grant even if they receive a state rebate or other preferred treatment like below market loans or tax preferred bonds.

More study is needed to understand the interplay between the grant and the basis for depreciation, but it appears only 85% of the cost of a project that receives a grant can be depreciated. Lessors who receive the grant should be able to depreciate 100% of the project cost, but will have to report one half of the grant as income over the period the project is depreciated.

Traditional system owners will still need to have substantial tax liability, usually created by making a profit, to utilize the full benefit of depreciation and create reasonable payback.

Interested businesses should contact Sundoor Solar on Research Parkway in Meriden or other approved solar contractors in CT. Consider letting the SUN pay your electric bill. You can visit them on the web at sundoorsolar.com or call at 203.630.7077.

About Sundoor
Sundoor Solar is a Connecticut based solar power installation company that designs, installs and services photovoltaic (PV) power systems. Sundoor is the brainchild of its two partners, David Luft and Ernie DeCosta.

David founded his electrical contracting company, Dalco Electric, known for its commitment to a long term relationship with its customers, for over 23 years. He is a Connecticut Master Electrician, license #E1-125263. Sundoor Solar is an approved Connecticut Clean Energy Fund Installer in part, due to David's electrical experience and reputation.

Ernie as been in the home improvement and sunroom business since 1983 starting HomeTech Sunrooms 13 years ago. He estimates that he has built over 500 sunrooms over that period of time. His initiation into the solar industry began as an installer of passive solar collectors in sunrooms that he built for his sunroom customers.

They share a passion for the use of alternative energy resources as a means of creating a sustainable, environmental solutions to our power needs. In 2009 they decided to make their passion a reality and combine their experience and skills and started Sundoor Solar.

Currently, Sundoor Solar is a professional solar design and installation company that is building its reputation on its core conviction of honest, conservative estimates of how homeowners and businesses can reap the benefits of solar energy.

125 Research Parkway
Meriden, CT 06450

This release was published on openPR.