As we sit in the middle of winter, most people can’t believe how high their utility bills are. Going with solar energy can lower your bills and you get a hefty tax credit

Solar Tax Credit

Solar energy is a clean, renewable energy source. The production of solar energy on residential and commercial structures creates no pollutants and is starting to make serious financial sense. In 35 states, the concept of net metering is now an established fact. Net metering simply means you can sell energy from solar panel systems back to utilities, thus eliminating or seriously reducing utility bills. As oil and natural gas costs skyrocket, the Federal Government is doing even more to promote the use of solar energy.

In 2005, Congress enacted the Energy Policy Act. As part of the act, a tax credit was established for any person purchasing and installing residential solar energy systems for electric and water heating purposes. If you purchase and install solar systems for either of these purposes, you can take a 30 percent tax credit. If you install systems for both of these purposes you can double the tax credit. To avoid tax abuse, each tax credit has a cap of $2,000.

Importantly, tax credits are far more valuable than tax deductions. Tax deductions are taken from your gross income prior to figuring the amount of tax owed. Tax credits are a dollar for dollar reduction of the actual amount of tax you owe. For instance, if you prepare your tax returns and find you owe $5,000 to the IRS, a tax credit would be deducted from this $5,000 figure. In short, a tax credit gives you a lot more bang for your buck.

To claim the solar tax credit, there are a few restrictions and requirements. First, you can’t claim the tax credit if you use the solar system to heat a hot tub or pool. Second, the system must be certified by a solar rating certification corporation to establish that you, in fact, installed a working system. Third, the system must be activated between January 1, 2005 and the end of 2007. Finally, you cannot claim the credit if the government gave you a grant or financing to purchase the system, to wit, no double dipping.

When solar energy is discussed as a potential alternative energy source, most supporters point to the environmental benefits. Ultimately, the benefits to ones bank account will really make the difference and the solar tax credit is a solid step in that direction.

Rick Chapo is with SolarCompanies.com, a directory of solar energy companies. Visit us to read more articles on solar power and renewable energy.

Bookmark to:

In February 2006, President Bush announced what’s has come to be called the Solar America Initiative (SAI), designed to promote the widespread use of various solar energy technologies in homes throughout the United States by 2015.

It’s yet to be determined what effect SAI will have on America’s sagging real estate market, and that may actually be beside the point in the initial stages of the program. The overall goal of the program is to expand America’s electricity options while reducing the country’s dependence on foreign oil, which will ultimately improve the country’s overall economy and environment.

U.S. Department of Energy

The push to incorporate more solar technology into American homes will be coming from many different directions, including the U.S. Department of Energy (DOE), which has been given a mandate to encourage more use of solar heat and electricity in homes and businesses, beginning immediately.

The Solar Energy Industries Association (SEIA) recently released a document titled “A Guide to Federal Tax Credits for Solar Energy,” offering details about a number of federal solar tax incentives that were enacted as part of the Energy Policy Act of 2005. Included in those incentives is a 30 percent tax credit (up to $2,000) for the installation of qualifying photovoltaic or solar water heating systems in the home.

The same legislation increased the solar tax credit to businesses from 10 to 30 percent, with no cap on the amount of credit that can be claimed, if the systems are installed in 2006 or 2007.

The goal of the tax incentives is to encourage market growth and improvement in solar technology by increasing the demand and acceptance of the concept. As solar technology becomes more ubiquitous, public acceptance should become more mainstream, as well, and providing attractive tax incentives for both homeowners and businesses is a good place to start.

Energy Crisis

In the face of what looks to be a long-term energy crisis, solar technology is beginning to make more and more sense to the average person. The solar industry is working with member of congress to try to extend the generous tax credit beyond the 2007 date, in hopes of making an even bigger impact on America’s energy shortage. Extending the incentives can go a long way toward establishing the U.S. solar industry as a strong alternative to foreign oil.

As American solar technology improves, more and more businesses and homes will begin to use the sun’s energy to provide all or part of their heat, hot water, electricity, and cooling needs. In time, home buyers will undoubtedly begin to insist upon having solar technology built into their real estate packages, but for now, the Solar America Initiative should be considered just the first step in moving the United States toward energy independence and greater economic stability.

In years to come, when solar technology has become so commonplace that’s it’s hardly given a second thought, it’s very probable that solar advocates will look back at SAI as the cornerstone that made it all possible.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher, author of real estate investing and interior design books, also writes about Environmental Psychology. For more environment articles, see http://environmentpsychology.com/environment_ecology.htm

Bookmark to:

As anyone who’s ever jumped into a frigid pool knows, a swimming pool heater is a handy gadget to have, especially for those cooler days and nights that hit every summer. People living in cooler climates usually like to extend their swimming days past Labor Day, and a heater makes it possible to enjoy that last bit of summertime fun before the leaves start turning.
Swimming pool heaters are generally offered with electric capabilities or, for more rural areas, propane or natural gas. In addition to the traditional heater, people today also have a choice of purchasing a heating pump as well as utilizing solar power through the use of a solar heating system, which is an energy efficient and environmentally friendly way of keeping that pool water warm during at least three out of four seasons a year.
In most cases the size and horsepower of a swimming pool heater will depend on the size of your swimming pool, or gallon capacity, and the temperature of your climate. It will take less energy and horsepower to heat a swimming pool on a cool Arizona night that it would in Minnesota.
In addition, whether your pool is above ground or in […]

Full Article At: KnowHow-Now.com Articles

Bookmark to: