IRS Update on Certification

Modification of Notice 2015-4

Notice 2015-51

SECTION 1: PURPOSE

On February 2, 2015, the Treasury Department and IRS published Notice 2015- 4, which provides guidance on the energy credit under section 48 of the Internal Revenue Code (Code). Specifically, that notice provides performance and quality standards that small wind energy property must meet to qualify for the energy credit under section 48. Notice 2015-4 is effective for small wind energy property acquired or placed in service (in the case of property constructed, reconstructed, or erected by the taxpayer) after February 2, 2015. This notice modifies Notice 2015-4 by providing a revised effective date for certain small wind energy property that meets the performance and quality standards of International Electrotechnical Commission 61400-1, 61400-12, and 61400-11. Except as otherwise specified in this notice, the guidance provided in Notice 2015-4 continues to apply.

SECTION 2: SMALL WIND ENERGY PROPERTY STANDARDS

.01 Section 3.01 of Notice 2015-4 provides that to qualify as small wind energy property under section 48, the property must use a wind turbine that has a nameplate capacity of not more than 100 kW and meets the performance and quality standards as set forth in either of the following: – 2 – (1) American Wind Energy Association Small Wind Turbine Performance and Safety Standard 9.1-2009 (AWEA); or (2) International Electrotechnical Commission 61400-1, 61400-12, and 61400-11 (IEC). .02 The performance and quality standards under AWEA apply only to wind turbines having a rotor swept area of 200m2 or less. All other wind turbines having a rotor swept area of more than 200m2 must meet the performance and quality standards as set forth in IEC.

SECTION 3: MODIFICATION OF NOTICE

2015-4 In response to information that has come to the attention of Treasury and the IRS about the ability of manufacturers of certain property to immediately complete the certification process relating to the performance and quality standards as set forth in IEC, this Notice delays the effective date in Notice 2015-4 with respect to such property. Accordingly, this notice modifies Notice 2015-4 by replacing section 5 of the notice with the following language: This notice is effective for small wind energy property acquired or placed in service (in the case of property constructed, reconstructed, or erected by the taxpayer) after February 2, 2015, if the small wind energy property uses a wind turbine having a rotor swept area of 200m2 or less, and after December 31, 2015, if the small wind energy property uses a wind turbine having a rotor swept area of more than 200m2 .

SECTION 4: DRAFTING INFORMATION

-The principal author of this notice is Martha M. Garcia of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this notice, contact Ms. Garcia on 202-317-6853 (not a toll-free call).

World’s Leading Manufacturer of Small Wind Turbines Enters the Japanese Market

World’s Leading Manufacturer of Small Wind Turbines Enters the Japanese Market

Contact: Ben Finzel

RENEWPR

Phone: 202-277-6286

ben@renewpr.com

 

Press Release

World’s Leading Manufacturer of Small Wind Turbines Enters the Japanese Market

Three-Year Effort to Gain First-Ever Complete Certifications of Small Wind Turbines Yields First Installations in the Newest “Mega-Market” for Small Wind

Norman, Oklahoma, July 8, 2015:  After a three year effort to gain first-ever separate product certifications for its wind turbine, electronics and towers, Bergey Windpower has seen the first installations of its best-selling 10 kW wind turbines in Japan. Two Bergey Excel 10 turbines were installed on 100 ft (30m) towers near Nagata in western Japan in May and connected to the grid in early June.

With their full certification – the first of its kind in Japan for a turbine and tower – by ClassNK (Japan’s certification body for small wind turbines), the Bergey 10 kW turbines qualify for a Japanese federal incentive program (J-FIT) that pays the turbine owner ¥55 (approximately 44 cents) per kilowatt-hour produced. The J-FIT program has helped spur a boom in solar installations in Japan. The new J-FIT certification program for small wind turbines is expected to have the same impact on the small wind market over the next several years.

“We are proud that our 10 kW turbines – which are already the best-selling turbines in the world in the 5 kW – 20kW range – are now the first in Japan with a certified tower,” explained Mike Bergey, president and CEO of Bergey Windpower. “As the first and so far only manufacturer to use the J-FIT program to certify both a small wind turbine and tower, we are well positioned to capitalize on the expected growth in the Japanese market. In fact, we are already seeing a dramatic increase in orders and expect to begin shipping several hundred more units to Japan over the next twelve months.”

The Bergey 10 kW is proving popular in Japan because it has only four moving parts, doesn’t require scheduled maintenance, and carries the longest warranty (10 years) in the wind industry. Bergey went the extra distance to certify a 100 ft tower for its 10 kW turbines, double the height of towers being offered with other small wind turbines in the market.

“The shorter towers offered by competitors in the market – which don’t have to be certified due to their height – will cause their turbines to suffer reduced performance and more wear and tear because of higher turbulence closer to the ground,” noted Bergey. “Our pre-approved taller towers will provide an important market advantage as more small wind turbine models become certified and enter the Japanese market.”

Japan is one of the few markets that offer higher incentives for small wind compared to solar.  Solar prices have dropped so much in recent years that Japan has been able to reduce its incentives while maintaining growth.  It has the potential to be the largest market in the world for small wind turbines up to 20 kW over the next few years.

Bergey Windpower is the world’s leading supplier of small wind turbines, with installations in all 50 states and over 100 countries. Bergey Windpower, located in Norman, OK, is a 38-year old family-owned small business.  All of its products are manufactured in the USA and the company buys goods and services from over 200 vendors in 27 states.

NOTE TO EDITORS: A high-resolution photo of the installed turbines is available upon request from Ben Finzel, ben@renewpr.com.

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USDA Renewable Energy Project Applications due June 30th

USDA Renewable Energy Project Applications due June 30th

DENVER, June 2, 2015 – Trudy Kareus, Colorado USDA Rural Development State Director, announced that applications for the second round of Rural Energy for America Program (REAP) are due June 30, 2015.  Agricultural producers and rural small business owners can now apply for resources to purchase and install renewable energy systems or make energy efficiency improvements. The REAP funding is an excellent example of the many ways that USDA is helping revitalize rural economies to create opportunities for growth and prosperity, support innovative technologies, identify new markets for agricultural producers and better utilize our nation’s natural resources.  Eligible projects must incorporate commercially available technology.

Grants are available for up to 25 percent of total project costs and loan guarantees for up to 75 percent of total project costs for renewable energy systems and energy efficiency improvements. Total grant funding available for all projects in this round will be $526,000.  For more information on the program in Colorado contact Don Nunn, Colorado State Office, (720) 544-2927, donald.nunn@co.usda.gov.

 USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users.)

DWEA Board President Addresses Congressional Subcommittee

 

DWEA Board President Addresses Congressional Subcommittee

Proposed Legislation Contained Positive Suggestions for Distributed Wind

DURANGO, CO – May 28, 2015 — Michael Bergey, the president of the Distributed Wind Energy Association Board, addressed the United States House of Representatives Subcommittee on Energy and Power on May 19 regarding its “Architecture of Abundance” legislation initiative.

Bergey brought forth several sections of the legislation, voicing concerns about a focus on oil and gas supply disruptions instead of a focus on enhancing federal, state, and local capabilities during a grid outage; that the costs of a new transformer reserve were to come from the Energy Efficiency and Renewable Energy program budget at the Department of Energy instead of the DOE Office of Electricity Delivery and Reliability; that unregulated utilities were not covered; that renewable distributed generation was not mentioned; and that the legislation offered a counter-intuitive emphasis on base-load generation. Bergey also praised several aspects of the legislation, including the clarification on streamlined decision-making during critical periods; how the nation’s the nation’s ability to respond to major grid security emergency would be enhanced; and the mandating of considerations affecting grid resiliency at state regulatory agencies and utilities.

Bergey, who is also the president and CEO of Bergey Windpower Co., said,  “I believe the draft legislation has many good and valuable aspects, but I also believe it misses significant opportunities to address emerging reliability and security issues and the plethora of new approaches and solutions made possible by technology innovations in the electric power sector.  In particular, I believe the important role that distributed generation and storage will play in increasing the reliability and resiliency of the power grid deserves more attention.”

In his final remarks to the Subcommittee, Bergey said, “My primary request to this Committee is to bolster Section 1207 to take better advantage of the opportunities that emerging distributed renewable energy, storage, controls, and other grid-enhancing technologies offer today and tomorrow.  If there are legislative opportunities to promote distributed generation beyond this discussion draft I would encourage the Committee to seize those opportunities.  Doing so will help build the American economy while delivering the improvements in energy reliability and security that we’d all like to see.”

 

 

Pika Instals a T701 turbine in North Carolina

Pika Instals a T701 turbine in North Carolina

Pika recently worked with winemaker Tom Mincarelli , who is located at 3,200 feet above sea level in Black Mountain, North Carolina. He is off-grid with Pika’s T701 wind turbine and B801 Battery Charge Controller. Tom is an installer and has a great site for wind, which is why he’s had turbines for more than 25 years! He has been thrilled with the performance of the Pika T701.
“I’ve lived next to wind generators for more than 25 years and this is the first time I can hear the natural sounds around me.” –Tim Mincarelli
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