Rebates and Incentives

In an effort to promote the use of solar energy and minimize our need for foreign oil, the federal government has recently implemented a policy that allows consumers to get additional savings in the form of tax credits:

Homeowner:
Homeowners who install solar energy systems will receive a tax credit worth 30% of the system cost, capped at $2,000 (e.i. If you purchase a $6,666.66 system, your credit is $2,000)

Business:

Businesses that purchase solar equipment will also receive a credit worth 30% of the overall system cost. There are no caps (limits) for commercial/business tax credits.

A Tax Credit is not to be confused with a tax deduction, credits are a direct credit against taxes owed. If you overpaid taxes through withholding, it would increase your rebate. If you underpaid taxes for the tax year, it would directly reduce the amount you owe. Additionally, these tax credits are authorized through 2008.

This is a good time to consider purchasing "the whole package"; by taking advantage of the savings offered now, you can add numerous products that can maximize the benefits of solar powered products and make them as convenient as any other conventional system but with the addition of environmental and economic benefits. Read the FAQ below for more information.

Additional State Incentives

There are also additional State Incentives and Grants.  DSIRE (Database of State Incentives for Renewable Energy) has a comprehensive source of information on state, local, utility and selected federal incentives that promote renewable energy. Find out what is available in your state:

See Solar Water Heating State Incentives PDF


Energy Policy Act of 2005 - FAQ

1. What are the dates of the credit? Is it applicable to existing systems?

The credits become available for systems that are “placed in service” – activated between January 1, 2006, and December 31, 2007. If the installation is on a new home, the “placed in service” date is the date of occupancy by the homeowner. Systems that have already been installed are not eligible.

2. What about systems that have been purchased but not installed?

Should you sell/buy a system and even start work this year, but do not complete “original installation” of the system or “place it in service” until January 1, it will qualify for the credit.

3. Can this credit be applied to capacity additions or used equipment?

(i.e. I have a 1.5 kW system, and I want to add 1.5 kW more.) Similarly, can I apply this credit to used equipment going into a new installation?

This is not entirely clear at present. However, the language would suggest that both scenarios are allowed – the credits apply to the amount of expenditure on solar energy property in a given year. SEIA will work with the IRS to develop regulations favorable to the solar industry. We will pass on additional information as it becomes available.

4. How does the residential cap on expenditures operate?

An individual can take the 30% credit up to a $2,000 cap for photovoltaics, while also taking the credit up to a separate $2,000 cap for solar water heating. The credit may be carried over to future years. Business entities have no cap on the total credit amount, provided they have a sufficient tax liability. Businesses have two years in which to take the credit.

5. How does the credit work with existing state credits or utility incentives?

The credit applies to the basis remaining after any state or utility incentives available to the taxpayer have been taken. Example: a $10,000 system that receives $5,000 in state incentives would be eligible for a $1,500 Federal credit.

6. Are there any changes to the business solar tax credit other than percent?

The business solar tax credit will continue to be administered before; all that has changed is the percentage increase to 30%. Operation and legal technicalities of the business credit are well established. An accountant or tax professional familiar with these rules should be able to inform you on any specific issues.

source: FLASEIA (Florida Solar Energy Industries Association)

 
 
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Cash Rebates

Using solar energy can save you money and reduce your direct impact on the environment. Federal, State and Local incentives are now available to help you achieve your goal of energy independence and to reduce your carbon footprint.


tax and utility company rebates and incentives

Plus many states are also offering substantial rebates and incentives to help you achieve your goal of energy independence and to reduce your carbon footprint.  

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