Solar Gets Bailed Out!
They say that every cloud has a silver lining. In that case, the recently passed – only slightly improved – bailout bill is quite the thunderhead. But here’s the silver lining…the solar tax credits have been renewed!! It’s a shame that it took such a ridiculous but certain-to-pass bill to get what we solar fans have been pining for – and opining about – in the last few years. And it came in the nick of time, with solar stocks falling, solar companies cinching their belts, and eager homeowners beginning to give up hope.
Yet, hope for renewable energy has been regained! The bill will extend the all-important Investment Tax Credit (ITC) for eight years and … with a huge round of applause … it removes the $2,000 cap on residential electric systems! This is what so many homeowners have been waiting for. This is a big break. While the tax credit for residential systems has always been 30% of the cost, it was for some reason capped at the two-grand mentioned above. So, let’s say your solar system will cost $40,000 to purchase and install. Beginning in 2009, you can now expect up to $12,000 in credits from the feds … that’s a 600% increase! Combine that with oft lucrative state rebates and incentives, and you’ve made solar energy systems considerably more affordable.
Expect a lot more homeowners to consider it.
Expect a lot more solar-related businesses to prosper.
Expect a lot more quality, green-collar jobs: over 200,000 in California alone.
While we still have hundreds of billions of dollars in bailouts for negligent, manipulative bankers (notably The Federal Reserve Bank of New York) that are now the taxpayers’ problem, at least the renewable energy credits are paid for by a decrease in credits for oil and gas companies. Nonetheless, it’s great to see the feds finally getting both feet firmly on the solar bandwagon. Other renewable energies included are wind, biomass, tidal, bio-fuels, and plug-in vehicles. Use of carbon-capture technology by existing power plants also got the tax credit nod.
Posted on October 8th in Solar News by Dan.
January 24th, 2009 at 9:00 pm
Can you please provide more information on this?
January 30th, 2009 at 8:34 am
Carol,
Beginning January 1, 2009 homeowners and businesses are eligible for a federal income tax credit equal to 30% of the total cost (including equipment and installation) of a qualifying solar energy system. While these tax credits are not new but renewed,there are three big differences this time around;
1)the $2,000 cap on residential credits is removed, and
2)utilities are now eligible for tax credits directly
3)the credits extend to geothermal heat pumps and small wind energy systems.
For a complete breakdown of the credits, go to http://www.dsireusa.org
click on “federal incentives” then “Residential Renewable Energy Tax Credit”
The credits were backdated to the start of January 2008, but the removal of the $2,000 cap on solar systems was not effective until 2009. The cap remains for solar hot water systems.
I hope this helps in some way. If you have more specific questions, do not hesitate to ask.