How Does It Work?
If your business uses 250 gallons (or more) of daytime hot water and is located in a community of under 50,000 population, then you may qualify for a new solar hot water system using both REAP grants and Federal cash back tax credits.
The USDA Renewable Energy for America Program (REAP) grant, in combination with Federal cash back rebates and SHEM financial support enable you to realize the cash value of multiple programs and long-term benefits of free hot water.
That's the good news. The bad news is this program combination is limited in it's availability. REAP funds area available on a first come first served basis. Federal cash incentive program is available only until the end of 2011. The REAP commercial grant deadline is considerably shorter, ending April 1, 2011.
Allocation of Expenses
This program involves a 20% downpayment by the purchaser, payable incrementally as follows:
5% of estimated cost of your system will serve as an initial deposit to begin the grant application. There is a significant amount of work involved in the development of the grant for every individual system. This deposit ensures the dedication of participating parties.
Another 5% payment is due upon the award of the grant. If the grant is not awarded, the initial 5% deposit is returned.
The final 10% downpayment would be due upon completion of the installation. These three payments (5%, 5%, 10%) represent the total cash investment. The balance of system cost is financed through grants (25%), rebates (30%) and cash flow from reduced utility expense (25%).
The REAP grant will cover 25% of the system cost. This 25% payment will be due from the purchaser after it is received from REAP, some 75 days after completion.
Federal rebates of 30% are payable in a similar fashion. These amounts are payable after the purchaser receives their federal rebate, estimated at 150 days after completion.
SHEM will provide a maintenance agreement and financing for the 25% balance of your system's total cost. The cash flow for these payments is guaranteed to come from the utility savings. Twice per year, your solar dealer will check your system to assure peak performance, and to communiate savings. In other words, future payments cover both system cost and on-going maintenance and supervision, and are paid for by savings.
The net result: Your total out-of-pocket expense will be 20%. The system's savings are guaranteed, with performance measured with data loggers and supervised by bi-annual site inspections.
Please call (785) 597-2333 or email us to contact our REAP Program Director to begin the application process.
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