Solar Tax Incentives / Tax Credits

Posted by admin | | Sunday 15 February 2009 8:50 pm

Solar Hot Water Incentives and Credits

Federal and State governments have incentives in place to accelerate renewable energy, green living, and have instituted a wide ranging number of assistance programs to help prospective owners with the purchase of their systems. Currently there are a number of Federal and State credits, incentives, and rebates for both Solar Hot Water (solar thermal) Systems and Photovoltaic (PV or Solar Electric) Systems. Many states, similar to the Federal Government, offer tax credits on the purchase of Solar Hot Water and Solar Electric Systems. However, states also provide incentives such as rebates, grants, production credits, sales tax exemptions, and more. It is imperative that you have a firm understanding what incentives are available to you, and where, how, and when to apply before you purchase your Solar Hot Water System.

SunMaxx Evacuated Tube Solar Collectors are SRCC Certified.

The Solar Rating and Certification corporation currently administers a certification, rating, and labeling program for solar collectors and a similar program for complete solar water and swimming pool heating systems.

SRCC’s certification program operating guidelines, test methods and minimum standards, and rating methodologies require the performance of nationally accepted equipment tests on solar equipment by independent laboratories which are accredited by SRCC. The test results and product data are evaluated by SRCC to determine the product’s compliance with the minimum standards for certification and to calculate the performance ratings.

Equipment which has been certified and rated by SRCC is required to bear the SRCC certification label which shows the performance rating for that product.

In addition, each certified product is published by SRCC in a directory. Each product’s directory listing contains information on the product’s material and specifications as well as the certified thermal performance rating.

The SRCC certification makes the SunMaxx solar system eligible for all federal and state tax incentives.

Additional Tax Incentives

Most Relevant Federal Incentives for Renewables and Efficiency

Last DSIRE Review: 02/19/2009

Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service before 1/1/09: $2,000
Solar-electric systems placed in service after 12/31/08: no maximum
Solar water heaters placed in service before 1/1/09: $2,000
Solar water heaters placed in service after 12/31/08: no maximum
Wind turbines placed in service in 2008: $4,000
Wind turbines placed in service after 12/31/08: no maximum
Geothermal heat pumps placed in service in 2008: $2,000
Geothermal heat pumps placed in service after 12/31/08: no maximum
Fuel cells: $500 per 0.5 kW
Carryover Provisions: Excess credit may be carried forward to succeeding tax year
Eligible System Size: Fuel cells: 0.5 kW minimum
Equipment/Installation Requirements: Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state in which the system is installed. At least half the energy used to heat the dwelling’s water must be from solar. Geothermal heat pumps must meet federal Energy Star requirements. Fuel cells must have electricity-only generation efficiency greater than 30%.
Authority 1: 26 USC ยง 25D
Date Enacted: 8/8/2005 (subsequently amended)
Effective Date: 1/1/2006
Expiration Date: 12/31/2016
Authority 2: H.R. 1424 (The Energy Improvement and Extension Act of 2008)
Date Enacted: 10/3/2008
Effective Date: 1/1/2008
Expiration Date: 12/31/2016
Authority 3: H.R. 1: Div. B, Sec. 1122 (The American Recovery and Reinvestment Act of 2009)
Date Enacted: 2/17/2009
Effective Date: 1/1/2009
Authority 4: IRS Form 5695 & Instructions: Residential Energy Credits