As architects and developers, your work has a direct impact on the environment, and it’s important to consider how your projects can contribute to a sustainable future. By incorporating energy-efficient features into your new construction projects, you not only reduce your environmental impact but also save money on energy costs. And with California’s energy rebate programs, you can get even more benefits for your energy-efficient building designs.
Let’s take a quick look at some of California’s most popular energy incentives:
California Multi-Family New Homes
If you’re working on a new multifamily residential construction project, you might want to consider the California Multi-Family New Homes (CNFMH) Program. This program provides energy incentives for incorporating measures such as high-efficiency HVAC systems, insulation, and water heating systems. To qualify, your project must be located in California, and your building “… must be new construction consisting of three or more attached units and must exceed the current Title 24 Building Energy Efficiency Standards by at least 20 percent.” (PGE)
Commercial Property Assessed Clean Energy
CPACE, or Commercial Property Assessed Clean Energy, is a financing program that enables commercial property owners to obtain long-term, low-cost loans for energy efficiency, renewable energy, and water conservation improvements to their buildings. The program is designed to help property owners reduce their energy consumption, lower their operating costs, and increase the value of their buildings while promoting sustainability and job creation. CPACE loans are repaid over the course of many years through a special assessment on the property’s tax bill, which can stay with the property if it is sold, and are structured to be cash-flow positive from day one.
Deduction of the Cost of Energy-Efficient Property Installed in Commercial Buildings
Commercial buildings that meet the energy-saving criteria set by ASHRAE Standard 90.1-2001 can qualify for a tax deduction of up to $1.80 per square foot, depending on the age of the structure. Buildings that achieve at least a 50% reduction in heating and cooling energy usage are eligible for the full deduction. Partial deductions are available for measures affecting the building envelope, lighting, or heating and cooling systems.
Federal Solar Tax Credits
The federal solar investment tax credit (ITC) is a financial incentive that encourages businesses to invest in solar energy. Eligible businesses can receive a tax credit of up to 26% of the solar energy system installation cost. This significantly reduces the project’s upfront cost. The ITC applies to both solar photovoltaic (PV) and solar water heating systems. Businesses installing systems on new or existing properties can claim the credit. The credit offsets federal income tax liability. Any unused portion can be carried forward to future tax years. The ITC has been extended through 2023, after which the credit will begin to phase out gradually.
Energy incentive programs offer architects, developers, and businesses a chance to positively impact the environment and their bottom line. These programs can help you save money on initial costs while also making significant strides towards a more sustainable future. And, with the right guidance, it’s easy to integrate energy-efficient features into your construction projects.
Partnering with CEDA
If your build is in California and in need of some guidance concerning energy incentives possibly available, CEDA can assist. CEDA specializes in helping architects, developers, and builders navigate the various energy incentive programs available in California. Our team can help you navigate the application process for these programs. Allowing you to maximize the energy incentives available. With their guidance, you can incorporate more energy-efficient features and systems into your projects and contribute to a more sustainable future.
To learn more about how CEDA can assist you in your next build, contact us today.
