Why Choose Solar Power Now?
Now
is the perfect time to get your solar power system
installed. Through a combination of federal tax
credits, state rebates and utility energy credits, you
can enjoy the benefits of clean solar energy for less
than you are paying now for conventional electricity.
Federal
Tax Credit
Currently, the
IRS is letting you take a 30% credit of the net cost
of your solar energy system against the taxes you owe.
For example, if your system costs $50,000, and your
state rebates were $20,000, you would get a 30% credit
on the remaining $30,000. This works out to $9,000. If
your federal taxes for the year are $9,000 or more,
you would deduct the full $9,000 from your taxes. For
many homeowners, this would wipe out the tax liability
for the year. If your taxes are less than $9,000, you
can carry the difference forward to the following year
and there-after, until you use up your entire credit.
State
Rebates
Pennsylvania and
New Jersey have been very active in supporting clean
renewable energy in their states. Currently,
Pennsylvania provides a rebate equal to about $2.25
for each Watt of power your system generates. For an
average 7,200 Watt system, this works out to about
$16,200 in state rebates back to you. For New Jersey,
the average residential solar system rebate has been
over $30,000 (see
reference).
Renewable
Energy Credits
Both
Pennsylvania and New Jersey require the utility
companies to purchase the power you generate and to
provide renewable energy credits based on the power
you generate, even if you consume it directly. This
helps the state meet its goals to produce a certain
percentage of their energy from clean, renewable
resources. In Pennsylvania, you earn an energy
certificate for every 1,000 KW hours your system
produces. The average 7,200 Watt system will produce
8,400 KW hours over the year, earning you 8
certificates. Based on the current redemption value,
these 8 certificates would provide you with almost
$2,000 in annual income, or $166 per month. This
monthly cash can be used to pay for solar system. In
New Jersey, the certificates are worth over $400 each.
Your solar consultant can go over the specifics with
you when you request a visit to your home.
Why
You Must Act Now
The rebates from
the IRS and state governments will not go on forever.
As more and more solar systems get installed, the
rebates will decrease. As far as we know, the
renewable energy credits will NOT go away, so you will
always get this money to help pay for your system.
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