Guide To Understanding Solar Rebates
When you go solar, you reap a range of benefits. Not only do you save money on your energy costs, you help to reduce carbon emissions, greenhouse gases, and your own reliance on an inefficient power grid.
With typical solar installations running in the $40-$50k range it may seem like an expensive proposition. However, solar rebate can reduce your initial cost by up to 50%, and sometimes more. By no means is solar power cheap, but this guide to understanding how those rebates work can show you how to save on your solar investment.
Progress for Federal Solar Incentives
Following the enactment of solar tax credits in 2005, there has been unprecedented expansion of solar power in the U.S. Twice as much solar electric capacity was installed in 2007 as compared to the previous year.
In late-2008 “The Economic Stabilization Act” extended the 30% tax credit for residences and commercial installations. Other solar Investment Tax Credit (ITC) provisions eliminated the $2,000 cap for residential solar, establishing the ability to realize the full 30% tax credit for property put into service after 12/31/08.
State solar rebates and other programs
Our article on the “Top 10 Solar-Friendly States” covers just 20% of the country, but it makes it clear that the states are trying all manner of incentives to get people thinking “renewable” and “solar.” Programs differ from state to state, of course, but your local professional installers will be up to speed on what is happening in your region.
Arizona’s APS Renewable Incentive Program, for example, will pay up-front incentives of up to $75,000 for 50% of photovoltaic (PV) project costs. Other state programs rebate a certain amount per kilowatt-hour, while still others rely on the tax code to motivate homeowners to go solar.
Utility Incentives
Various utility companies are trying various ways to “incentivize” solar as well. There are direct rebates, billing credits, and “discount per watt” programs that will drive down installation costs as well as ongoing energy bills. You have to avail yourself of the expertise of a professional installer, whose business it is to have the most up-to-date information regarding rebates, and incentives, to make this process seamless and easy.
The road ahead for solar rebates
The word is getting out that solar is the best bet among the various renewable sources that are touted by different interest groups. In some areas, the up-front costs of installation can be reduced by as much as 50-60%, even 70% in some circumstances.
With continuing discounts based on actual use as well as tax credits and creative solar financing arrangements, there is a sustainable future ahead, one that relies to a great degree on solar power. There is a lot to consider, but you are not alone in the process. Getting the experts on your side and making the move to renewable solar energy is good for your wallet as well as the world.