Many thanks to Buff Grace for coming to our Sunday forum and answering many questions. For those of you who missed his presentation, here is a link to the recording and the slides he used. https://stjohns-mpls.org/sermon/september-28-community-forum/
One point that we need to keep in mind. In the utility world, St John’s is considered a commercial facility. The solar credit deadlines are a little different than those for a residential facility. Commercial facilities do not need to have the system installed by the end of the year. We only need to have a contract signed and a deposit in place.
For those of you who want to install solar on your homes and take advantage of the tax credit, it needs to be up and running by the end of the year. Buff has provided this link to an organization who can help with residential systems. Solar Help Desk – Solar United Neighbors
We want to answer your questions! Here are questions from this week:
- How can we trust that the federal (state?) incentives will stay around long enough to pay for whatever we think they will pay for? The feds have been less than trustworthy lately in their commitments.
- The federal incentive is a 30% direct payment if we have a 10% deposit in place by the end of the year. Congress included this provision in the “Big Beautiful Bill” signed in July after sunsetting the IRA. Other incentives are from the city and Xcel.
- What is the financial commitment that St. John’s is making to these panels?
- There are 2 models on the table. One model is where we own the system and get all the incentives. The other option is where a third party owns the system, and they get the incentives. With that model, we would get a reduced electricity rate for 15 years and then buy the system in 15 years at a low cost.
- The cost of the cash model is $172K less $51.6K in federal tax incentives and less another $62.7K in utility incentives and grants. The net cost would be $57.7K. There could be another $13K from the city that we could apply for. This system would yield an estimated 30-year revenue of $329K based on projected utility savings.
- The cost of the 3rd party option is $0 now with a buyout of 30K in 15 years. Our 30-year savings revenue would be $210K based on a discounted electric rate for 15 years and then full electric utility savings after that.
- There are 2 models on the table. One model is where we own the system and get all the incentives. The other option is where a third party owns the system, and they get the incentives. With that model, we would get a reduced electricity rate for 15 years and then buy the system in 15 years at a low cost.
- With technology moving so quickly, are we buying solar panels at the right time, or will things get much better soon?
- Buff mentioned that technological advances in this area are minimal, and it is unlikely that there will be significant changes to drop the costs or improve the efficiency of a system. With tariffs, the cost is more likely to go up.
- What is the financial/environmental commitment we are making – and is it feasible?
- The financial costs are stated above. Environmental savings are in terms of our carbon footprint with a reduction of greenhouse gases that would otherwise be produced by the utility for our electricity. It can be viewed several ways. (See bulletin board for examples) Based on the size of our system, it would be equivalent of planting 22,000 trees to sequester the amount of carbon that we would produce in 30 years if we do not install solar.
We want to know your questions and concerns. Talk to us or email us.
Sarah, Doug, Allen
