Solar Tax Credit

Under the Energy Bill

Solar Tax Credit can knock off 30% the cost of a solar heating system - solar heating just became more affordable and feasible along with solar rebates, solar incentives, solar financing and tax credits.

Some big changes in recent legislation -- It does not have to be just your primary residence any longer, eligible are vacation homes and rentals for solar heating and other renewable energy systems.

Your existing homes and new construction are eligible. Here is the best part the new energy bill abolished the $2,000 cap on solar systems starting in 2009.

Use the solar energy calculator to estimate your payback period. On top of the 30% Federal, tax credit is sure to add any allowable State or local utility solar rebates and solar incentives.

Here’s the ‘rest of the story'. A minimum of 50% of the solar hot water produced at the “qualifying property” must come from the Sun.

Homeowners may only claim spending on the solar water heating system, not the entire water heating system of the household. The tax credit covers systems and installation cost.

The federal tax credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.

In order to receive a solar tax credit the system must be certified by the Solar Rating and Certification Corporation (SRCC).

Solar tax credit is only one piece of the solar financing pie. Solar incentives are available is energy efficient mortgages, solar rebates, and solar grants. These incentives are available from utility, local, States and Federal sources. When you put the pieces of the funding pie together, you get a sweet deal; substantially reducing your initial system costs. Commercial lenders also offer home energy efficiency mortgages.

The quick and most reliable way to find out about solar financing is to go to the DSIRE - Database of State Incentives for Renewable and Efficiency. This is absolutely the best and most reliable source of information about solar incentives, and solar rebates you will find anywhere. Understanding what solar incentives apply can be a daunting task. You can always call the funding entity "for more information" to ask your questions.

Solar heating system incentives can be a cost effective way to heat water for your home or business. You can heat water from the Sun in any climate - hot or cold. You can save between 50 percent and 85 percent of the water portion of your energy bill every month. After all the Sun is the source for free energy.

The actual savings from solar tax credits, solar rebates and solar incentives depends upon several factors that affect the system cost: the size of the system, system manufacturer, retailer and installer and solar financing that comprise loans and rebates.

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