Solar PV Archives - Green Econome

Inflation Reduction Act: A Cheat Sheet

October 13, 2022 Karalyn Shima Honea

Sunworks Solar Power: Surge of new solar projects predicted, following the passage of the Inflation Reduction Act

The energy sector, among many others, has been preparing for the transition to clean energy for a while now. While strides have been made, the roadmap has been less than straight. The passage of the Inflation Reduction Act (IRA) steadies the wheel and gives consumers clear direction. So, how do we get to cleaner energy? The following blog from our friends at Sunworks Solar Power succinctly explains what the IRA includes, and how organizations of all shapes and sizes can access new incentives and choices to achieve the highest return from solar, storage, and electrification projects.

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Sunworks Solar Power (2022, September 23). Surge of new solar projects predicted, following the passage of the IRA – Sunworks. Sunworksusa. https://sunworksusa.com/surge-of-new-solar-projects-predicted-following-the-passage-of-the-ira/

6 Ways For Building Owners To Save Money

April 2, 2020 admin

If you own and/or operate an older building, existing inefficient equipment or a lack of new-age, sustainable solutions may be unnecessarily driving up operational costs. Here are the 6 ways to make sure you’re saving money and not throwing it out the window.

1. Get Rid Of Those Fluorescent Lights

Replace all fluorescent lights with LEDs, including all parking lot lighting. Installing LEDssave up to 20% – 30% on annual operating costs.

Lighting Retrofit Case Study

2. Install Solar Already

In addition to providing a long term energy cost reduction, you’ll also utilize the available tax benefits:

26% Federal Business Energy ITC (dropping to 22% in 2021 and 10% thereafter),
The State of CA (MACRS) accelerated depreciation, and
Recently added, the 100% bonus Federal tax depreciation allows eligible entities to deduct the entire allowable tax basis of the system in the first year of operation.

Taking advantage of these tax incentives reduce the owner’s tax liability and will significantly offset the cost of a Solar PV system. These incentives can also be applied to a roof replacement if combined into one project.

Solar PVs Case Study

3. Stop Cooling An Empty Room

Replace pneumatic thermostats with digital for higher-level control and visibility. Digital thermostats allow building owners to reduce peak demand by creating schedules around when spaces are unoccupied (holidays, non-peak hours, etc.).

Thermostat Retrofit Case Study

4. Be Smarter Than The Building

An energy management system (EMS) provides real-time monitoring, energy analytics, and wireless building control. The ability to measure a building’s energy usage on a granular level allows for better management of energy consumption and “peak demand.” An EMS provides extensive energy data history, peak load notifications, detailed usage reports, and more.

Energy Management System Case Study

5. Shield Your Internal Environment

Solar window film is applied to the interior of a window in order to control solar heat absorption. The film rejects up to 79% of solar energy and 99% of harmful UV rays. Further, the film helps reduce glare, adding to a more comfortable office environment.

Solar Window Films Case Study

6. Protect Your Expensive Equipment

EvaporCool is a dual patented technology that pre-cools outdoor air prior to flowing through the condenser coils of an HVAC system. The pre-cooled air helps reduce the amount of work that the compressor must do to cool the air flowing inside a building. By minimizing the amount of work the compressor must do, the EvaporCool system prolongs the life of HVAC units, reduces energy usage up to 30%, and saves a significant amount in energy-related costs.

Evaporcool Case Study

Before getting started with any of these cost-saving options, we suggest having your building Benchmarked.

If you’d like to learn more about any of these cost-saving options, reach out to us at [email protected] or (818) 681-5750.

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Financing Insights

Tax Credits Remain For Efficiency Projects In 2018

January 12, 2020 admin

Did you implement Energy Efficiency measures in your building during 2018 or prior? You may be eligible for a tax deduction and/or credit.

As of December 19, 2019 the Senate has approved the 2019 Tax Extender Bill, which extends the 179D deduction and the 45L tax credit. This allows for the adjustment of 2018 tax returns to include qualified energy-efficiency projects from that year.

The deadline to amend 2018 tax returns is December 31, 2020. Projects from earlier than 2018 may still qualify if you have not taken advantage of available incentives. Ask Green EconoMe how you can maximize this benefit.

What is Section 179D Tax Deduction

179D was created in 2005 under the Energy Policy Act (EPACT), allowing a tax deduction from $0.30 to $1.80 per square foot for the installation of energy efficiency systems in the commercial space.

Building owners are not the only beneficiaries of this tax deduction. Tenants may also be eligible if they take on construction spending. However, deductions can only be recognized for the year that efficiency measures are up and running.

What is Section 45L Tax Credit

45L was created in 2005, providing $2,000 per dwelling unit that consumes less energy than national standards. This credit is meant for low-rise apartment developers with buildings 3 stories or fewer. Buildings 4 stories or more may qualify for the 179D deduction detailed above. The 45L credit can be applied to new construction or the refurbishment of existing units. Like with 179D, in order to be recognized for the tax credit, the new or refurbished unit must be leased or sold within the year that tax return is filed.

Does my Building Qualify for Tax Deduction or Tax Credit?

Green EconoME is a woman-owned, multi-disciplinary energy consulting and construction firm providing full-scale energy efficiency services to diverse public and private sector clients. Not only are we led by a former CFO who seeks all incentives available for each project, our ROI data is also 98% accurate. Contact us to see if any of your projects are eligible for these extensions!

[email protected] or (818) 681-5750

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Financing Insights

Solar PV Savings With 30% Tax Credit

November 12, 2019 admin

Solar PV reduces operating costs & increases building’s valuation!

Why should building owners consider Solar PV installations?

Solar Energy is truly renewable. The amount of energy generated by a PV system reduces both the kWh used by a building and the building’s peak KW.
The cost of solar-generated energy is much lower than the cost of energy purchased from a utility.
Thanks to the longevity of solar systems (appx. 25 years), a solar PV investment will allow owners to reap financial benefits for years to come.
The minute the system starts operating, Net Operating Income (NOI) increases.
Stop relying on others for energy by creating your own on-site energy independence.
Get Net Energy Metering (NEM) credit when excess energy gets sent back to the grid.
Solar Projects are eligible for the 30% Federal Investment Tax Credit (ITC). Installation of a new roof at the same time as the solar project, allows for 30% ITC on both projects. This Tax credit is dropping to 26% on January 1, 2020.
Demonstrate to your employees, neighbors, and customers that you’re serious about “Going Green”.

Case Study on Solar PV Savings

A hotel client invested $1.4 million into Solar PV systems to provide 27% of the hotel’s energy usage. With current tax credits and accelerated bonus depreciation, the project cost was reduced by 54%. Incredible.

Consult us today and see why a Solar PV system makes sense for all the above reasons and more!!

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