Denver, CO – February 15, 2011 The Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“The Act”) signed into law last December represents a major piece of good news for an unlikely constituency: public entities such as municipalities and special districts, and other tax-exempt entities adopting solar. RSB Funds and Martifer Solar have come together to offer these same entities the opportunity to obtain solar through a third party ownership model, where the benefits provide by the Act are shared with the Host in the form of lower power costs.
The Act includes two important provisions that will create strong demand among socially responsible investors to invest in renewable energy projects even more than they are now. The 1603 Treasury Grant program allows for 30% cash repayments from the Department of Treasury (in lieu of a 30% Investment Tax Credit) on renewable energy projects placed in service through end-2011. In addition, the 100% bonus depreciation on all capital expenditures (including renewable energy projects) is also allowed on projects that go on line through the end of 2011. Both make attractive solar energy investments even more attractive this year for both investor and energy consumer.
“Public entities and other tax-exempt organizations are not able to take advantage of the federal incentives that are a major part of financing large renewable projects,” said Greg Bohan, CIO of RSB Funds. “The 1603 Treasury Grant program and accelerated depreciation schedule will motivate a lot of idle capital to go to work in this already attractive space. We look forward to pairing the needs of the investment community with that of our nonprofit and tax–exempt customers to provide both a substantial win-win,” Bohan said.
RSBF provides 100% of the upfront costs of a solar system for its nonprofit and tax-exempt customers. The customer doesn’t have any ownership responsibilities, nor any responsibility for the system other than to purchase the energy. “We will be able to put these assets on-line at a cost that allows us to sell power to our customers for substantially less than they are currently paying to the utility, allowing them to redirect these funds to other vital services,” said Robert Quist, VP of Originations of RSB Funds. Martifer Solar and RSB Funds are currently finishing one of the nation’s largest public school installations for Colorado’s Jefferson County Public School District.
“Solar systems can help to restore public entity budgets,” said CEO of Martifer Solar USA, Raffi Agopian. “RSBF’s low-profit finance model and Martifer’s low installation costs make solar arrays a distinctly profitable mechanism to recover district funds and create opportunities for well deserved causes.”
About Martifer Solar USA
Los Angeles based Martifer Solar USA, (www.MartiferSolarUSA.com) specializes in the design, engineering and installation of residential, commercial and industrial-scale photovoltaic (PV) electric systems and components. Martifer Solar USA has been installing systems within the U.S. since 2001. Martifer Solar is a division of the Martifer Group, (www.Martifer.pt), a publicly traded construction and renewable energy company. To date, Martifer Solar has participated in the implementation of over 100 MW of photovoltaic solar energy worldwide.
About RSB Funds, L3C
Renewable Social Benefit Funds (RSB Funds) is an alternative energy company focused exclusively on bringing solar power to hospitals, schools, low-income housing projects and other governmental and tax-exempt entities. RSB Funds develops solar projects for its clients that require no initial investment, provide the best-in-breed operation and maintenance, and always reduce energy costs so that savings can be used to support mission-critical programs. RSB Funds is an L3C (Low-profit, Limited Liability Company). An L3C is run like a regular business and is profitable, yet unlike a standard LLC, the L3C has primarily charitable goals. For more information on RSB Funds and its programs, visit www.rsbfunds.com.
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Federal tax incentives and state rebates can take up to 50% off the upfront cost of your PV system. As more homeowners install solar, the state rebates are decreasing. To maximize your full financial benefits and to secure a low electricity rate, act now.
