Flexible Loans for Solar Hot Water Heaters
Other Financial Incentives for Renewable Energy Systems
Federal Tax Credits for Solar, Wind, & Energy Efficiency
Flexible Loans for Solar Hot Water Heaters
The Kentucky Solar Partnership (KSP) and the Mountain Association for Community Economic Development (MACED) are partnering to offer flexible loans for the installation of solar water heaters. Loans cover the full equipment and installation cost. Contact MACED to learn what rates and terms are currently available.Who can apply?
Residents and businesses in Eastern Kentucky
are
eligible to apply. A credit check is required
before
final loan approval. Click
here to see a map and list
of the 51 counties in
MACED's service area.
What
does a solar water heater cost?
Installing a residential solar
water heater in Kentucky will typically cost $4,000 to $6,500 and will
save a family about $150 to $400 or more per year on their utility
bills. The price range for installing a system depends on the amount of
hot water used each day, whether a new water storage tank is required,
the size of the home, whether the system is installed by the homeowner
or a professional contractor, and other factors.
Click here for an illustration of how much money a typical family spends just to heat water, and how much can be saved by using a solar water heater. Actual financial savings will depend upon the type of fuel used by the conventional water heater, the cost of fuel or electricity, the amount of hot water used in the home, and other factors. As energy costs rise, financial savings will increase as well.
Higher loans
for larger solar water heating systems (such as those used for radiant
home heating or commercial uses), will be evaluated on a case by case
basis."
How
can I apply?
Download a copy of
the loan application and follow
the
instructions. The process begins with a solar site
assessment
to determine if your home is suitable
for a solar water heater
- most homes are, but it's
important to make sure before you
buy a system.
Contact a solar water heater installer and ask
them
to conduct a site assessment (to find a
qualified
installer in your area, refer to our list of
SWH
installers). If your loan application is
accepted, the
cost of the assessment can be included in the
loan.
If the loan is declined, KSP will reimburse you
for
the cost of the assessment (up to $50).
Solar Water Heater Loan Program Documents
Loan Application (PDF)
Site Assessment Form (PDF)
Installation Checklist
(PDF)
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Other Financial Incentives for Renewable Energy Systems
MACED Loans for Commercial
Renewable Energy Investments
and
MACED also offers loans to
businesses for the installation of renewable energy
systems,
(859-986-2373), www.maced.org).
Commercial Tax Credits for Solar Energy
A Federal business energy tax credit of 30% is
available to businesses that purchase
Other Incentives Available in Kentucky
Read Chapter Thirteen of The
The Database of State Incentives for Renewable Energy (DSIRE)
DSIRE's website provides a comprehensive source of information on state, local, utility,Back to top
Federal Tax Credits for Solar, Wind, & Energy Efficiency
The Energy Policy Act of 2005 (EPAct 2005) established tax incentives for a number of renewable energy and energy efficiency measures. Subsequent legislation has extended and modified these incentives, which include:
- Tax credits for small wind and geothermal systems
What are Tax Credits and Tax Deductions?
There is an important difference between a tax deduction and a tax credit. A tax deduction is subtracted from income before total tax liability is computed. On the other hand, a tax credit is subtracted directly from the total tax liability. This means that a deduction and a credit have very different values, with a credit being 3 or more times more advantageous to the taxpayer than a deduction. For example, a tax credit of $1,000 for someone in the 28% tax bracket is equivalent to a tax deduction of $3,571.
Tax Credits for Solar Photovoltaics and Solar Water Heating Systems
The Federal Tax Credits for solar energy were modified and extended in 2008. Now, Federal tax credits are available for residential and commercial solar energy systems placed in service between January 1, 2006 and December 31, 2016.
Residential Tax Credits – For solar water heaters and solar electric (PV) systems placed in service before January 1, 2009, the tax credit is 30% of the equipment and installation cost, with a maximum tax credit of $2,000. For residential PV systems placed in service on or after January 1, 2009, there is no cap on the value of the tax credit. The cap remains in effect for solar hot water systems.
Commercial Tax Credits – For solar water heaters, solar electric (PV) systems, and solar hybrid lighting, the tax credit is 30% of the equipment and installation cost, with no maximum limit.
To be eligible for the solar hot water system tax credit, the system must be certified by the Solar Rating and Certification Corporation (SRCC) and produce 50% or more of the hot water needed by the residence. There is no qualification provided for PV systems. Individuals may claim tax credits for either or both types of solar systems.
Energy Efficiency Improvements for Existing Homes and Fuel-Efficient Passenger and Commercial Vehicles
To learn about the various other incentives available, visit the following websites.
Tax Incentives Assistance Project – www.energytaxincentives.org
Database of State Incentives for Renewable Energy - www.dsireusa.org
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