Holy Cross Energy explains tax credits
Recently a story in the Aspen Daily News about the Woody Creek Caucus caused a little confusion about credits related to the Pitkin County solar array and I would like to clear up that confusion if possible.
There are two different types of credits that can be associated with solar arrays. The first are investment tax credits the federal government allows for those that install solar arrays to deduct a portion of the installation cost from federal taxes. These tax credits are a form of federal support for renewable projects that in effect reduce the purchase price of renewable energy.
Holy Cross Energy (HCE) is a not-for-profit electric cooperative and therefore is unable to receive tax credits. By asking a third party to develop this site for our members, the third party can take advantage of the tax credits and use those savings to reduce the cost of the power we purchase on behalf of our members.
Both Pitkin County and Aspen Consolidated Sanitation District are not-for-profit organizations, so although they are involved in the project as well, they would not be eligible for the tax credits either.
The second type of credit discussed in association with solar-array projects are renewable energy credits, which are proof that electricity was generated from an eligible renewable energy resource. HCE is issued all of the RECs from the Pitkin County solar Aaray and uses these RECs to account for green power supplied to the HCE membership.
Therefore, HCE members are reaping the benefits of both of these “credits” with a lower cost of power and the green attributes of that power assigned to HCE’s power supply.
Both systems are complicated, so if you have any remaining questions or would like to discuss this project further, please give me a call at 970-947-5470.
Vice president, Member & Community Relations
Holy Cross Energy
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