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3318RE: [hreg] Assistance RESPONSE

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  • Andrew McCalla
    Sep 10, 2005
    • 0 Attachment
      Richard,

      Not much, but at least it doesn't hurt.

      Tax code specialists please weigh in to correct if need be, but I've long
      understood this to simply mean that the appraisal valuation is not allowed
      to increase because of the installation of one of the described
      systems......... and not that there is some sort of deduction or other tax
      benefit to that installation.


      Andrew H. McCalla
      Meridian Energy Systems
      2300 S. Lamar, Ste. 107
      Austin, TX 78704

      Voice: (512) 448-0055
      Fax: (512) 448-0045
      www.meridiansolar.com


      _____________________________________________
      From: hreg@yahoogroups.com [mailto:hreg@yahoogroups.com] On
      Behalf Of Richard D. Kelley
      Sent: Friday, September 09, 2005 6:10 PM
      To: 'hreg@yahoogroups.com'
      Subject: RE: [hreg] Assistance RESPONSE

      Perhaps this will help!

      Solar and Wind-Powered Energy Systems Exemption
      Last DSIRE Review: 08/12/2004
      Incentive Type: Property Tax Exemption
      Eligible Renewable/Other Technologies: Passive Solar Space
      Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass,
      Anaerobic Digestion
      Applicable Sectors: Residential
      Amount: 100%
      Max. Limit: None
      Authority 1: Texas Statutes § 11.27
      <http://www.dsireusa.org/documents/Incentives/TX03F.htm>

      Date Enacted: 1981



      Summary:
      The Texas property tax code allows an exemption of
      the amount of the appraised property value that arises from the installation
      or construction of a solar or wind-powered energy device that is primarily
      for the production and distribution of energy for on-site use.

      "Solar energy device" means an apparatus designed or adapted
      to convert the radiant energy from the sun, including energy imparted to
      plants through photosynthesis employing the bioconversion processes of
      anaerobic digestion, gasification, pyrolysis, or fermentation, but not
      including direct combustion, into thermal, mechanical, or electrical energy;
      to store the converted energy, either in the form to which originally
      converted or another form; or to distribute radiant solar energy or the
      energy to which the radiant solar energy is converted.

      "Wind-powered energy device" means an apparatus designed or
      adapted to convert the energy available in the wind into thermal,
      mechanical, or electrical energy; to store the converted energy, either in
      the form to which originally converted or another form; or to distribute the
      converted energy.


      Contact:
      Pam Groce
      Comptroller of Public Accounts
      State Energy Conservation Office
      111 East 17th Street, Room 1114
      Austin, TX 78774
      Phone: (512) 463-1889
      Fax: (512) 475-2569
      E-Mail: pam.groce@...
      Web site: http://www.seco.cpa.state.tx.us


      TEXAS STATUTES
      TITLE 1. PROPERTY TAX CODE
      SUBTITLE C. TAXABLE PROPERTY AND EXEMPTIONS
      CHAPTER 11. TAXABLE PROPERTY AND EXEMPTIONS
      SUBCHAPTER A. TAXABLE PROPERTY
      § 11.27. Solar and Wind-Powered Energy Devices.
      (a) A person is entitled to an exemption from taxation of the amount of
      appraised value of his property that arises from the installation or
      construction of a solar or wind-powered energy device that is primarily for
      production and distribution of energy for on-site use.
      (b) The comptroller, with the assistance of the Texas Energy and Natural
      Resources Advisory Council, or its successor, shall develop guidelines to
      assist local officials in the administration of this section.
      (c) In this section:
      (1) "Solar energy device" means an apparatus designed or adapted to convert
      the radiant energy from the sun, including energy imparted to plants through
      photosynthesis employing the
      bioconversion processes of anaerobic digestion, gasification, pyrolysis, or
      fermentation, but not including direct combustion, into thermal, mechanical,
      or electrical energy; to store the converted energy, either in the form to
      which originally converted or another form; or to distribute radiant solar
      energy or the
      energy to which the radiant solar energy is converted.
      (2) "Wind-powered energy device" means an apparatus designed or adapted to
      convert the energy available in the wind into thermal, mechanical, or
      electrical energy; to store the converted
      energy, either in the form to which originally converted or another form; or
      to distribute the converted energy.



      Thank you,

      Richard D. Kelley, PMP
      Certified Project Manger
      Rdkelley@...
      (281) 933 - 3958





      -----Original Message-----
      From: John Miggins [SMTP:jmiggins@...]
      Sent: Saturday, September 03, 2005 12:10
      PM
      To: hreg@yahoogroups.com
      Subject: Re: [hreg] Assistance
      RESPONSE

      << File: ATT00012.htm >> Thanks for the
      help Bashir, your calculations helped me clarify the calcuation process and
      thanks for the clarification Andrew. I appreciate this thread as it goes to
      the heart of what we often encounter in the solar business. People want to
      know how long it will take to pay for their system and it often shows a
      long time, over 20 years. I have struggled with this and asked Bashir for
      his method thinking that I had missed something. What is true payback
      period and what is true cost of line power are legitimate questions.

      I do know that new panels are hot or produce
      up to 15% more than they are rated to allow for some loss in power over
      time. a 150 watt panel will actually put out over 170 watts. This should
      be figured into the equation but a dissipation of this effect will need to
      be included as well.

      Incentives are what is driving the market,
      california being one instance, as well as remote users who have little other
      choice. For people in urban areas, the payback may be long but seeing what
      has happened in LA/MS it makes sense to have some solar capability for
      back-up to run your refrig, phone, some lights and fans in case power goes
      out. This can be done for $5000 or less and will provide for some security
      and peace of mind.

      Payback goes out the window when the power
      is out.
      solar thermal makes sense right now, payback
      is less than 5 years.





      John Miggins
      Harvest Solar & Wind Power
      "renewable solutions to everyday needs"
      www.harvest-energy.com
      Phone/Fax 918-743-2299
      Cell: 918-521-6223

      ----- Original Message -----
      From: Andrew McCalla
      To: hreg@yahoogroups.com
      Sent: Saturday, September 03, 2005 7:15 AM
      Subject: RE: [hreg] Assistance RESPONSE


      All,



      There are many ways of calculating the
      "payback" of a pv system...some which make it look more appealing, some
      which make it worse, some using very basic calculations, some using complex
      financial analyses and calculated energy projections.



      The method however, that has been
      presented in this thread, is most peculiar.



      First of all, while acceptable to use the
      NREL average for back-of-the envelope calculations, it probably isn't
      acceptable to simply de-rate the STC rating of the array by the inefficiency
      of it as there are many other inefficiencies that come into play by the time
      the power from the system in question gets put to work.



      This pitfall is illuminated in the example
      that a 3 kW array will provide the 450 kWh/month (average) or 5400 kWh/year.
      To be clear: it would not, at least not in Houston.



      Secondly, and regarding the basis for the
      calculations we have seen:

      It will be very hard to install to
      functionality a quality 3 kW system installed for $18K. Furthermore, it
      would seem that the example case is assuming a $.56/kWh rate (5400 kWh/Year
      for $3K). Perhaps this includes environmental costs or other "intangibles",
      which is most appropriate in a big-picture way, but maybe not so much for a
      bare-bones payback analysis.



      I am a pv advocate and I believe that a
      true accounting should incorporate all social and environmental costs, in
      addition to the financial ones. However, or perhaps because of that
      advocacy, I think that a clear representation needs to made as to the
      limitations, as well as the capabilities, of this technology with respect to
      people's energy "needs".



      See below for a more "real world"
      projection for what the 3 kW system in question might actually do in
      Houston:



      Station Identification

      City:
      Houston

      State:
      TX

      Latitude:
      29.98° N

      Longitude:
      95.37° W

      Elevation:
      33 m

      PV System Specifications

      DC Rating:
      3.0 kW

      DC to AC Derate Factor:
      0.770

      AC Rating:
      2.3 kW

      Array Type:
      Fixed Tilt

      Array Tilt:
      30.0°

      Array Azimuth:
      180.0°

      Energy Specifications

      Cost of Electricity:
      9.2 ¢/kWh






      Results


      Month
      Solar Radiation
      (kWh/m2/day)
      AC Energy
      (kWh)
      Energy Value (estimated)
      ($)

      1
      3.68
      252
      23.18

      2
      4.12
      251
      23.09

      3
      4.82
      321
      29.53

      4
      4.98
      315
      28.98

      5
      5.24
      335
      30.82

      6
      5.53
      337
      31.00

      7
      5.43
      338
      31.10

      8
      5.44
      342
      31.46

      9
      5.40
      332
      30.54

      10
      5.19
      334
      30.73

      11
      4.33
      277
      25.48

      12
      3.34
      226
      20.79











      Year
      4.79
      3660
      336.72










      And here for an output projection for the
      system one might need (with correct array orientation) to hit their 5400
      kWh/year consumption mark:





      Station Identification

      City:
      Houston

      State:
      TX

      Latitude:
      29.98° N

      Longitude:
      95.37° W

      Elevation:
      33 m

      PV System Specifications

      DC Rating:
      4.5 kW

      DC to AC Derate Factor:
      0.770

      AC Rating:
      3.5 kW

      Array Type:
      Fixed Tilt

      Array Tilt:
      30.0°

      Array Azimuth:
      180.0°

      Energy Specifications

      Cost of Electricity:
      9.2 ¢/kWh






      Results


      Month
      Solar Radiation
      (kWh/m2/day)
      AC Energy
      (kWh)
      Energy Value (estimated)
      ($)

      1
      3.68
      377
      34.68

      2
      4.12
      376
      34.59

      3
      4.82
      481
      44.25

      4
      4.98
      472
      43.42

      5
      5.24
      502
      46.18

      6
      5.53
      505
      46.46

      7
      5.43
      508
      46.74

      8
      5.44
      514
      47.29

      9
      5.40
      498
      45.82

      10
      5.19
      500
      46.00

      11
      4.33
      416
      38.27

      12
      3.34
      339
      31.19











      Year
      4.79
      5489
      504.99










      Andrew H. McCalla

      Meridian Energy Systems

      2300 S. Lamar, Ste. 107

      Austin, TX 78704



      Voice: (512) 448-0055

      Fax: (512) 448-0045

      www.meridiansolar.com









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