Rodrigo Romo recently wrote up an analysis of how a solar hot water heater installation works.

After the amount it saves you covers the installation cost, the sun makes electricity for you “free.” This is the same principle utilized in the alternative energy Farm Loan Bill that we are submitting to the Legislature this year.

The current High Tech Business Investment Tax Credit, Act 221, gives a 100 percent state income tax credit for alternate energy projects. So farmers can have their projects built free through income tax savings—just like Rodrigo’s solar water heater example.

Rodrigo writes: We just installed a solar water heater in our house this week because there is a pretty good deal going on. We were told that it should cut back the utility bill by about $20 per person, or about $80 dollars a month. The prices listed here include everything (installation too; it is a turn-key price).

The total cost of the system was $6,656, tax included, but the deal is as follows:

Solar System $6,400
Tax $256
Total $6,656

HELCO Rebate ($1,000)
Federal Credit ($1,697) ($5,656 x 30%)
State Credit ($1,980) ($5,656 x 35%)

Balance to pay $1,980

Right now they have a 12 month, zero down and no interest plan. And if you get it done before the end of the year, you get the federal and state credits on this year’s tax return. The state and federal amounts are not an income deduction, but an actual credit.

The guy that sold it to us is Jonathan Ahn (Solar Engineering and Contracting). His number is 966-9066 and his cell is 255-1824. We got an 80 gallon active system which includes the two solar panels and an 80 gallon tank. If you call him, tell him that Rodrigo Romo gave you the information!