Home Solar Power

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.

Electricity, Solar Power Electricity, Home Solar Power, Rebates

I wrote in an earlier post about the economics of home home solar power and described how it wasn’t an option, in pure economic terms, for most home owners.

If you are lucky enough to live in certain areas of the USA, there’s one factor that will completely reverse this assumption. Many states, or energy companies themselves, will rebate a large part of the cost of a professional home home solar power installation. I checked on one area at random, Austin, Texas. The local energy company there will give you 80% of the cost of the installation as a direct rebate then, additionally, buy surplus electricity from you at wholesale rates. To quote from their site:

For a typical residence, the cost of installing a one kilowatt (1,000 watts) solar photovoltaic system—the smallest considered practical—is between $6,000 and $10,000. Austin Energy will rebate $4,500 ($4.50 x 1,000 watts) of that.

Their figures are a little out-of-date according to my research as the cost of PV cells has been falling and you should be able to get a 2.5KWhp system installed for around $10,000. Their maximum rebate in this case would be capped at 80% of your installation cost, or $8,000. You would therefore only pay $2,000 for a 2.5KW solar energy system. Factor in the money you will make from selling back surplus electricity and you will be in pocket after a relatively short time.

Here’s another example for sunny Florida. They are offering rebates of $4 per Watt for installed PV systems. If you get a 2.5KW system installed for $10,000 then they will rebate you the entire $10,000 unless I’m missing something in the fine print. If you can feed surplus electricity back to the utility company (most allow this) it’s a free perpetual income stream.

You can find details of the rebates in your area at DSIRE - The database of state incentives for renewables and efficiency.

Electricity Electricity, Rebates