| Is home solar power a realistic and affordable option in | | | | low-interest loan. Due to state and federal requirement |
| the US? | | | | for power companies to source more green energy, |
| Photo voltaic cells, which turn light directly into electricity, | | | | they are also willing to buy back electricity generated |
| are now readily available in the USA. You can buy | | | | from your solar panels. Your electricity meter runs |
| solar panels and install them yourself, or have a | | | | backwards to measure this. Some householders with |
| professional installer do this for you at a cost. These | | | | large installations, or low power consumption, even |
| will generate some electricity during the hours of | | | | receive a monthly check from their utility company |
| daylight, even when it's cloudy. The problem is the cost | | | | instead of a bill! |
| of the panels, and the additional cost of installation if | | | | You can find details of the rebates for your state at |
| you don't fancy climbing up on your roof to install them | | | | DSIRE This is a national database of incentives for |
| yourself. Typical installation costs run to $10,000 for a | | | | renewable energy and efficiency and is free to use. |
| 2.5KWp system. More if you have them installed by a | | | | 2. Tax Credits |
| contractor. The most this will save you is $300 to | | | | In 2005 congress introduced a tax credit for |
| $500 a year depending on the price of electricity from | | | | renewable and energy conservation in residential |
| your utility company and your climate. This gives you a | | | | buildings. Unfortunately this was capped at $2,000. In |
| payback period of 20 years assuming no maintenance | | | | 2008 congress extended the tax credit on residential |
| is required during the first 20 years. If you live in an | | | | solar power installations for a further eight years and |
| area with cloud cover for several months of the year | | | | also removed the previous $2,000 cap. Most states |
| then these figures are ever worse. | | | | are also matching the federal credit, so if you are |
| So on the face of it, solar power doesn't make sense | | | | dipping into your own wallet for solar panels this could |
| economically. There are plenty of environmental | | | | make a big difference to your tax bill next April. As |
| reasons to consider it but I'll cover those in another | | | | with all tax matters the situation may be affected by |
| article. There are, however, two little known factors | | | | your personal circumstances so be sure to consult a |
| that will completely turn this around. | | | | tax professional before making any commitment. |
| 1. State Rebates. | | | | Given the factors for rebates and tax credits you may |
| If you are lucky enough to live in certain states, either | | | | find that installing solar power is the best financial |
| your state government of your local utility company will | | | | decision you ever made. You can get more |
| rebate a part of the cost of a home solar power | | | | information on rebates and links for the DSIRE |
| installation. Several states are giving cash rebates of | | | | database from Home Solar Power at 4solarpower.net. |
| up to 80% of the cost. Others will give you a | | | | |