Watching Your Pot of Cash Boil

Are you considering a new water heater? Maybe you want to replace your existing water heater with a gas or electrical water heater. There are several options you can have; the standard water heaters or a tankless system. Another option is a solar water heating system. Not only is it the most efficient of the options available to you but solar water heaters are cost-effective and are an environmentally responsible alternative to conventional methods of producing domestic hot water. If you made energy saving improvements to your home located in the United States in 2007 or are making them in 2008 you may qualify for the residential energy efficient property credit.

In 2005, the United States government enacted the Energy Policy Act of 2005 (EPACT) which gave homeowners a 30% Federal tax credit on all solar systems installed between January 1, 2006 to December 31, 2007. Initially scheduled to expire at the end of 2007, the tax credits have been extended to December, 31 2008. For residential installations, there is a $2,000 cap.

A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. If you purchase a solar water heater, you can itemize the purchase on your federal income tax form, which will lower the total amount of tax you owe the government.

Per the IRS, qualified solar water heating property costs are costs for property to heat water for use in a home located in the United States and used as your home if at least half of the energy used by the solar water heating property for such purpose is derived from the sun. This includes costs relating to a solar panel or other property installed as a roof or a portion of a roof. To qualify for the credit, the property must be certified by the nonprofit Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed. The home does not have to be your main home.

To be eligible for the credit, a system must be "placed in service" or activated on or after January 1, 2006, and on or before December 31, 2008. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner.

The federal tax credit will pay as much as one-third of the cost upfront, but in many states such as California and New Jersey, there are other incentives available that pay as much as 60%. For example, in Southern California, the maximum incentive is a $1,500 rebate.

Excess credit may be carried forward to succeeding taxable year and added to the credit allowable for the succeeding taxable year. Be aware: any system producing hot water for a pool, spa or hot tub does not qualify for the 2007-2008 federal tax credit.

To learn more about tax information related to solar power, visit www.real-estate-owner.com/solar-tax-information.html

To learn more about tax information related to solar power, visit www.real-estate-owner.com/solar-tax-information.html

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Solar Sail-- Earth Version

The Solar Sailer is a solar hybrid ferry working the Melborne Harbour. Very cool.
From their corporate bumf:

This document describes safe and efficient hybrid marine power (HMP) technology that is applicable today.
It features examples of vessels that can utilise such technology. The designs can be tailored to your specific needs. All are hybrid electric and add solar and in some cases wind to aide in propulsion.
All vessels are safe, efficient and capable of zero emissions at the wharf. They are ideal for the use of alternative fuels and as platforms for new technology such as energy storage and fuel cells.
Solar Sailor vessels are the “greenest’ vessels in the world commercially available and would
be a perfect fit with any modern, sophisticated organisation.

Houses Are Expensive. I'll Live Outside

Stupid arguments do not change reality.

I've watched housing move from costing five years of gross annual income to eight years of an annual income in just a few short years. That dramatic rise hasn't stopped people from considering life indoors-- they just realize the neccessity and commit to the expense. One reason is the amortization.

The argument against alternative energy is the expense. While traditional generation has a carbon hit, the upfront dollar costs are cheap. People don't want to spend the upfront costs. But I think the ice is thawing. I was at Costco, and they are selling portable solar arrays for $300. The massive power outtages have given people reason to doubt the constancy of their power supply. Like it or not, people are going off the grid-- either they are choosing energy alternatives or they're getting punted off of the grid when their power supplier fails them. What if there were a way to amortize your alternative energy?

Enter Citizenre. This company is going to home owners with an offer: let Citizenre install a solar array capable of supplying the home with power and let Citizenre charge you for the power coming down from the roof. The homeowner pays a small amount upfront as a deposit. Within 15 years, the cost of the equipment should have been paid off by the homeowner's payments to Citizenre. The equipment has a likely lifespan of 25 years so Citizenre can use those 10 years as their profit margin. In effect, Citizenre becomes a power supplier-- instead of threading 1000 miles of cable that bleed EM into our cells, their power runs 20 feet to a power inverter.

The people behind Citizenre, namely Rob Styler bailed out of California company, Equinox, three years before the Federal Trade Commission shut it down. So, is this like Hill-Murray and Associates for a consumer model of delivering alternative energy? Or could this be the real deal? The good side: regardless how well Citizenre does this, other players can come into the marketplace: without the need for infrastructure, there could be 50 amortized energy players in a market without threat of a market glut. Even if there is a glut, these suppliers can go overseas to Asia and Africa and electrify them one hut at a time.