Grants and Other Financial Resources
There are many options for tax-credits, grants, financing and promotions delivered by both state and federal level governments. DSIRE SOLAR has compounded a list of incentives for residents and businesses to view and study before (or after) installing a solar energy system. Aside from being used to promote the use of cleaner and more efficient energy sources, these incentives can greatly increase your returns on investment by reducing your overall costs!
These incentive programs can assist individuals, businesses and local governments with investment opportunities in both Solar PV systems and Solar Hot Water systems that RES can provide for you. We can assist you in the process of searching and applying for grants to help ease the process. View the DSIRE List here.
Examples of Programs
NIPSCO's Feed-In-Tariff Program
The NIPSCO Feed-In-Tarrif allows customers in northern Indiana that own or are planning to own a renewable energy source to connect to the NIPSCO grid and use a net-metering system. What this does is it allows a customer to draw energy if/when needed from NIPSCO as well as gain credit for extra energy they produce back to the grid, which can then be used later to help balance energy needs.
In simpler terms, if you produce extra energy that you do not use during a sunny day, you gain credit on your NIPSCO account to use on your rainy days. In the long term, you may gain credit throughout the summer, which can then be used to offset your need for NIPSCO's energy during winter times when there is less sunlight. *Some customers, depending on their application, can balance-out over the year, owing virtually nothing on their energy bill.
*Every customer's energy needs and renewable energy applications differ, so not all results will end in a zero-balance. This example is plausible, but not exact and is used for educational purposes only.
Solar Renewable Energy Certificates, also known as SRECs work for you as it allows for you to sell energy. When you produce 1 SREC, or 1 Mwh of electricity, you can sell it to the market through a trade program. A 10kW system can produce about 12 SRECs per year. When you sell your SREC, you can get market value or even lock in a price for a term up to 5 years for guaranteed returns on each SREC.
Keep in mind, not all states have an SREC trading program through SRECTrade. However, many states can trade through an adjacent state's program. ie.: Indiana can trade through Ohio's office. ALL applicants must apply and be approved to get set up for the program.
Here is essentially why you get paid at market value:
"In SREC state markets, the Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar generators. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created.
The SREC is sold separately from the electricity and represents the "solar" aspect of the electricity that was produced. The value of an SREC is determined by the market subject to supply and demand constraints. SRECs can be sold to electricity suppliers needing to meet their solar RPS requirement. The market is typically capped by a fine or solar alternative compliance payment (SACP) paid by any electricity suppliers for every SREC they fall short of the requirement." - SRECTrade.com