Financial Savings Questions

CAN A NEW ROOF COST BE INCLUDED IN THE TAX CREDIT CALCULATION?

Yes, potentially. There are two IRS rules that can be used to include roof cost in solar projects. The first is weatherization (where roofing and repairs are needed to make the roof suitable for solar) and the second is reflectivity (where the roof is at least 74% reflective in order to increase the efficiency of the solar system).

Solar Faithful will provide assistance, guidance and help with converting the tax credits to rebate, but expect each organization to secure the assistance of their accountant for the final determination on these matters.

WHAT IF THE ORGANIZATION REQUIRES A NEW ROOF, WHERE THE EXPECTED LIFE OF THE CURRENT ROOF IS SUBSTANTIALLY LESS THAN THE 25+YEAR EQUIPMENT LIFE?

To qualify for the Solar Faithful Program the roof needs to have sufficient life and structural strength to support solar for the life of ESSA.

A. If the roof life is insufficient, Solar Faithful will work with the organization to determine replacement options.

CAN THE COST OF A NEW ROOF BE INCLUDED IN THE SOLAR PROJECT?

Generally, no. The host organization is expected to have a roof that will be usable. However, roof inclusion for the tax credits can greatly improve project economics after roof cost.

HOW IS EXCESS ENERGY GENERATED FROM THE SOLAR INSTALLATION COMPENSATED?

It will show up as a credit on the next month’s utility bill.

WHY DOES THE ORGANIZATION NEED TO PROVIDE FINANCIAL INFORMATION?

In the case of a ESSA, the equipment is owned by an impact investment group with whom Solar Faithful has partnered. They require evidence that the organization has been in existence for at least 5 years and has a stable financial status shown by 2 years of returns/P&L and a balance sheet.