Cash Grant Extension Fuels Local Solar Industry
Earlier this month when President Barack Obama signed a compromise to extend the Bush-era tax cuts, Dan Greenwood, business development manager for Framingham-based SolarFlair Energy Inc. was relieved, to say the least.
In order to push the tax deal through a contentious Congress, the political heavyweights in Washington, D.C. agreed to continue a cash grant program that was set to expire at the end of the year for solar installation projects.
By extending the program, businesses can still take advantage of a lucrative cash grant incentive.
Under the program, run through the U.S. Treasury Department, owners of solar panel projects can get a federal reimbursement for up to 30 percent of the cost of installing a renewable energy system. The incentive was set to expire at the end of the year, but has been extended for another year as part of the tax package.
That means businesses like SolarFlair can expect to see continued red-hot business through 2011 in the solar industry.
"It was a pretty tense week," Greenwood said. "At first it looked like it was going to run out, then the Senate voted on it, then it looked like it might die in the House. Eventually it worked out and they got it done."
Cash or Credit?
While the cash grant was supposed to expire, what was going to stay in place after the New Year was a tax credit worth up to 30 percent of the cost of solar installations. But Greenwood said for many businesses, a tax credit is not as good as a cash grant. Businesses must be profitable and have a tax liability to use the credit against.
Some businesses, Greenwood said, were trying to get projects started before the end of the year so that they would qualify for the cash credit.
Read about businesses getting solar projects
started in time to qualify for the incentive here.
"The solar industry was really picking up in the last six months, and we really weren't sure what was going to happen if the grant came to an end," Greenwood said. "The fact that it's extended will just mean, hopefully, that the industry will continue its hot streak."
SolarFlair's local projects include a 498-kilowatt solar installation on the roofs of some of the Saxonville Mills complex in Framingham.
The mills were constructed in the 1800s for use as textile plants but have been converted into a business park by Creative Development Co., a Newton-based development team specializing in historic revitalization. The buildings now house high tech, retail and studio artist tenants.
A total of 1,780 solar panels will be installed on three of the nine buildings that make up the Saxonville complex. Within 60 days of the project going online, Creative Development officials expect to get a cash grant for 30 percent of the cost of the project. The solar installation is expected to be complete by the spring.
SolarFlair is also putting the final touches on a free-standing solar panel installation in Westborough on Milk Street.
The $2-million project will produce about 240 kilowatts of electricity, or enough power to supply about 50 homes. The installation is nearly complete and is just awaiting a connection to the power grid. It's being funded by Westborough developer and car-wash owner Bruce Forrestall.
Read more about Forrestall's installation here.
Solar Flair also recently completed installation of a 110- kilowatt system at Suburban Athletic Club in Framingham, which went online last month.
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