When President Obama publicly signed the American Recovery and Reinvestment Act (ARRA) on February 17 against a backdrop of the Denver Museum of Nature and Science, which added a 100 KW rooftop solar array in 2008. The man who introduced President Obama was the president and CEO of a Colorado-based solar company that had been getting ready to lay off workers to trim its budget.
Where the global economic downturn was hurting the solar industry, the ARRA is promising transformation. As approved in October of 2008, owners of solar properties could qualify for federal Investment Tax Credits (ITC) to assist help with financing. The problem was, the markets for buying tax credits all but disappeared with the economic downturn.
The Obama administration recognized the frozen investment channels and acted to get cash moving into the system – including up to $20 billion in new and modified tax incentives in the ARRA. Pure Power Distribution, which provides Mobile Solar Power Systems™, now finds itself in an exciting new position — the promise of work and financing, with the immediate and direct support of the federal government.
Here’s how it works: Solar companies can now apply for cash grants in lieu of the ITC, bringing cash upfront to fuel projects. Like the ITC, these Department of Treasury grants can cover up to 30 percent of the cost of qualified renewable energy projects placed in service in 2009-2010, or that begin construction within the next year and are placed in service by 2017. Keeping to the stimulus commitment of quick turnarounds, the Department of Treasury will pay the grant within 60 days of receiving an application.
In a further show of support, the ARRA also eliminates the “double dipping” penalty inflicted by the use of subsidized energy financing, whether the project chooses the ITC or cash grant route.
Pure Power Distribution understands these regulations well and can assist you in choosing the right solar solution and maximizing your benefits under the rules. Email us if you have questions about financing solar projects.
