Three Solar States

The number of U.S. states initiating and implementing solar power incentives increases every year. By the end of 2008, nearly every state has some form of incentive. The quality of the incentive plan varies widely and is usually analogous to that state’s renewable portfolio standard (RPS).

For this post, I want to highlight three states that have taken notable leaps toward solar power in the last few years. They are not the obvious leaders such as California, New Jersey, Colorado, Florida, and others. The following three states may not be perfect, but their legislatures have shown real interest in harnessing renewable energy and, thanks to the added help of renewed federal tax credits, these states are poised to explode into solar power prominence.

North Carolina

The Tar Heel State is a leader in the Southeast where, but for Florida, solar incentives are for the most part lacking. North Carolina was the first state in the region to adopt an RPS and they have been aggressive in reaching those goals. Incentives available to North Carolina residents include:

• Property tax exemption for solar water and space heating and cooling.
• Property tax abatement for solar electric systems.
• Photovoltaic tax rebate up to $10,500.
• Tax rebates for solar water, space, and pool heating.
• Net metering.

North Carolina does not have a state-funded production incentive (although the NC GreenPower program is worth a look) and has weak net metering standards. Nonetheless the state should be lauded for being a solar leader in a very coal-intensive region.

Louisiana

Another relative newcomer to the solar bandwagon is Louisiana. Perhaps frequent, violent storms and prolonged power outages as a result have got Louisiana legislators looking at some alternatives. The LA of the deep South has one especially bold star on their solar resume: they will pay for half of residents’ solar power system…up to $12,500 that is.

So while you are unlikely to get the full half off of a system powerful enough to supply all your electricity needs, on the other hand a $12,500 rebate is very appealing, even with a system cost of fifty grand. Furthermore, if your tax credit exceeds your tax liability, rather than carry the remainder over to subsequent years as done in the vast majority of states, in Louisiana they cut you a check.

Other incentives for Louisiana homeowners include:

• Property tax exemption for solar energy systems (including water, space, and pool systems).
• Loan program for solar systems.
• Net metering.

The fact is with Louisiana’s ambitious tax credit and the federal tax credits as well, you could get a 3 kW photovoltaic system for less than $6,000 up front.

Minnesota

From the deep South to the far North we go. Minnesota; a land of snow and strange accents right? Well it’s actually a land of plentiful sunshine and wind power. Wind does hold high potential in Minnesota, but state legislators have been smart enough not to ignore solar power either. Nearly every utility in the state has some incentives for renewable energy or energy efficiency.

How does Minnesota get their utilities so involved in cleaning up their power system? As per usual, it all comes down to an aggressive RPS. The state must get 25 percent of its power from renewables by 2025. That has started some things in motion for Minnesota, here are the highlights from the solar side:

• Property tax exemption for solar electric systems.
• Sales tax exemption for solar thermal and electric systems.
• Solar hot water rebate program.
• Solar electric rebate program. (fully-reserved at the moment)
• Net metering.

Minnesota is promoting solar from all sides. That is great. The only problem is underfunding. The solar rebate program budget (funded by Xcel Energy) is only $700,000 and solar hot water rebates compete for the same funding; hence the money is all spent. Nonetheless the programs are in place and Minnesota is working hard to prove that solar power is a viable energy source anywhere.

From Three to Fifty

North Carolina, Louisiana, and Minnesota are all evidence of the growing solar power movement and further evidence of how states have led the way. Remember that these are just three not the only three states that are turning to renewable energy aggressively. 2009 should be a big year for solar despite economic woes. These three states and the other leaders around the country may even be saved to a certain extent by their progressive renewable energy promotions. Will your state?

Posted on December 10th in Going Solar by Dan.