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Green Collar Careers - Solar PV Incentives

Solar photovoltaic systems have been granted some significant economic benefits to offset costs to a point where 40% of the homes in America would see immediate financial benefits TODAY!

Federal Government tax credit per IRS Home Energy Credits:

• Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaic, Fuel Cells
• Applicable Sectors: Residential
• Amount: 30%

With a typical solar PV installation running about $24,000 complete, the IRS has offered to chip in $8000.  Most utilities are budgeted to provide compensation (in exchange for the Carbon Credits the system provides them) as high as $2.48 per DC Watt.  For the typical 4000 Watt system that adds up to $9920.

State incentives are far more complex with a wide variety offered.  The Department of Energy has compiled a complete Database of State Incentives and Renewable Energy (DSIRE) that details incentives available state by state. 

Types of state incentives for solar water heating may include:

• Utility Rebates
• Low interest no qualify loans up to 5 years
• Property Tax exemption for up to the life of the system (on the average solar water heating systems add 50% of installed cost to value of home)
• State income tax credits and deductions
• County tax credits

An example of the value proposition for a typical 4000 Watt DC system installed in Texas:

Notice the added resale value to home isn't included in the Return on Investment (ROI).  The average time a home is lived in is about 7 years.  If the home was to be sold in 5 years here is how it works out:

So if the homeowner does plan to sell their in 5 years, they end up $4900 ahead on the overall investment.  Not to mention the intangible value of the shorter time on the market.  A solar PV system is one of the best selling features in residential real estate today.