Home Home Solar Power Tax Credits
I wrote recently about home solar power rebates and how they can give you a free, or nearly free, home home solar power system in many US states. But what if you don’t live in a state that doesn’t have a rebate scheme? And what if your state plan is oversubscribed or only covers a small part of the cost?
Solar power tax credits to the rescue!
In 2008 congress extended the tax credit on residential home solar power installations for a further eight years and also removed the previous $2,000 cap. Many states are also matching the federal credit, so if you are dipping into your own pocket for solar panels this could make a big difference to your tax bill next April.
Due to state and federal requirement for power companies to source more green energy, they are more willing than ever to buy back generated electricity (it makes your meter run backwards) thus eliminating the need for expensive battery storage for home use.
Consult your tax professional before making any commitment.
Being a thrifty type of fellow, my dad has been interested in seeing what the actual costs of a solar panel array are. He’s pretty handy so I’m thinking the installation can be done by him, so it’s really just a question of which panels to buy at this point. Unfortunately, that’s a big problem since the standard efficiency on a solar panel is relatively low and may go up in the future. Additionally, the costs of all solar equipment are reported to be going down soon… All of these variables really complicate the individual’s ability to choose or install anything at all and I therefore think that waiting is currently the best option, despite any tax credits that may be available.