Behind-the-Meter Wind Keeps Spinning with New Solutions,

Financial Incentives

GBA Provides Organizations with Turnkey Project Management

Lenexa, Kan. (Feb. 10, 2011) – Financial incentives have the potential to put “distributed wind,” also called “behind-the-meter wind,” on the map, but individual businesses, industry, and agribusiness must act now to take advantage of a 100% first-year bonus depreciation available this year only. GBA Architects and Engineers’ Energy Studio helps guide organizations from start-up through installation of their wind project – and helps them negotiate the complexities of financial incentives to take full advantage of these unique tools that can provide much quicker return on investment.

“Harnessing wind power for the private sector has never been more attractive because, with these incentives, project payback can be achieved more quickly than ever before,” explained Jennifer Gunby, P.E., LEED AP, who heads up GBA’s Energy Studio. “‘Distributed wind’” differs from the large wind farms owned by utilities in that it is located behind-the-meter where it directly serves its owners. Owners may be cities, counties, state agencies, school districts, colleges and universities, business and industry, and agribusinesses – even individuals.”

The Riley County Public Works facility in Manhattan, Kansas, an award-winning model for sustainable design, recently partnered with GBA to install the latest behind-the-meter wind technology. GBA worked with Riley County through each step of the process, from securing funding to providing guidance through all phases of installation, from permitting and environmental studies to utility and regulatory coordination, engineering design, and construction management.

Distributed wind projects may consist of a single turbine or multiple turbines ranging from 100kW to 1,000 kW. However, only taxpaying entities would benefit from the incentives provided from recent changes in the Tax Relief Act of 2010.

Financial incentives now available to private sector organizations include:

• The Federal Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010: This provision has given “distributed wind” and other renewable energy sources a significant boost by providing 100% depreciation for “eligible renewable energy systems placed in service before January 1, 2012.” After that, the bonus depreciation will revert to 50% of the eligible cost basis.

• The American Recovery and Reinvestment Act of 2009 (ARRA): This renewable energy grant program, which will expire at the end of 2011, is available to eligible properties, including small wind turbines, and is equal to 30% of the cost basis of the property. The cash grant program, which is administered by the U.S. Treasury Department, offers the grant in lieu of the federal business energy investment tax credit (ITC). Only tax-paying entities are eligible for this grant.

• State grants: Kansas, for example, provides the Kansas Corporation Tax Credit, an investment tax credit for certain renewable energy facilities constructed by December 31, 2011. Eligible renewable technologies, including wind, must be owned by a commercial, industrial, or agricultural business and must be located on the property of that business. The electricity produced by the renewable energy facility must remain in service for ten years and must be used either on-site or must displace current or future electric load. The credit is equal to 10% of the dollars invested in the project and must be claimed in 10 equal annual installments.

“Navigating the course of these incentive programs is very complex and requires specialists who understand the specific qualifications for each, including eligible technologies,” said GBA’s Gunby. She noted that Federal and state incentives must be carefully reviewed and their implications understood, both in and of themselves and in the context of other incentives available. The Database of State Incentives for Renewables & Efficiency (DSIRETM) www.dsireusa.org gives a good overview of Federal and state incentives available; more specific information is available from the IRS. Entities must work closely with their tax advisors to determine how these incentives will impact their unique tax positions.

Gunby said it’s important that dairy farmers, feedlot operators, and other industries with high energy requirements act now, during the first quarter of 2011, to get the best return on their renewable energy investment dollars. “We understand the funding sources and incentives available for these projects and conduct the pre-feasibility studies and feasibility studies required to make a decision to move forward,” Gunby explained. “But to take advantage of the 100% first-year bonus depreciation, the equipment must be acquired and ‘placed in service’ by the end of the year. If there was ever a reason to act and act now, this is it.”

More information about GBA:
GBA Architects and Engineers provides innovative, sustainable engineering, architectural, and construction management solutions for high-profile projects throughout the region. GBA’s Energy Studio provides complete turnkey services, from renewable energy feasibility studies, payback analysis, and grant assistance, to permitting and environmental studies, utility and regulatory coordination, electrical, structural, and civil engineering design, and construction management of installation. To learn more about GBA and GBA’s Energy Studio, visit our website at www.gbateam.com.

About the Riley County Public Works project:
Riley County Public Works, teamed with GBA Architects and Engineers and Kansas State University, received a $3 million DOE Energy Efficiency and Conservation Block Grant (EECBG) to fund “Resourceful Kansas.” The program is designed to engage communities throughout the state of Kansas in making a fundamental shift toward a less energy intensive, more efficient economy by reducing energy consumption, increasing efficient energy practices, harvesting the state’s abundant non-polluting wind and solar resources, and cultivating new economic opportunities throughout Kansas. Information about and applications for the program are available at www.ResourcefulKansas.org.