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Course Title
100 Home
101 Introduction
102 FAQ Page
103 Course Catalog
104 Green World
105 Demand & Supply
106 Conservation Careers
107 Solar Careers
108 Wind Turbine Careers
109 Entrepreneurs
110 Employee or Employer?
200 Demand Management
201 Summary
202 Residential Energy Profile
203 Ten Conservation Rules
204 HVAC System
205 Kitchen Appliances
206 Water Heater
207 Lighting
208 Laundry Appliances
209 Calculating Savings
300 Renewable Technology
301 Solar Energy
302 Solar Collectors
303 Solar Water Heating
304 Stirling Engines
305 Basic AC-DC Electronics
306 Silicon Solar Panels
307 Thin Film Solar Panels
308 Wind Turbines
309 Inverters
310 Grid Tied and Off Grid
311 Solar Site Survey
312 Solar Site Diagram
313 Sun Path Chart
314 Site Survey Worksheet
315 Wind Turbine Site Survey
316 Wind Turbine Worksheet
400 Solar Thermal Design
401 Solar Heat Overview
402 System Configuration
403 Site Survey
404 SRCC Compliance
405 System Specification
406 Bill of Materials
407 System Installation
408 Solar Heat Incentives
409 Document Package
410 Future Products
500 Solar PV Design
501 Solar PV Overview
502 System Configuration
503 Site Survey
504 Grid Tied & Off Grid
505 System Specification
506 Bill of Materials
507 System Installation
508 Solar PV Incentives
509 Document Package
510 Future Products
600 Wind Turbine Design
601 Wind Turbine Overview
602 System Configuration
603 Site Survey
604 Grid Tied and Off Grid
605 System Specification
Green Collar Links
Green Collar Sponsors

 

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:

4000 Watts DC Customer Price $24,000
Federal Tax Credit 30% -$6,750
After Tax Cost $17,250
   
Utility Incentive @ $2/DC Watt -$8,000
20% tax on Utility Incentive $1,600
Net System Cost $10,850
   
Annual Electricity Production $750
   
ROI (Years)  14.5
   
Added resale value to home $11,250

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:

Net System Cost -$10,850
Resale Value $12,000
5 Year Electricity Savings $3,750
Total return after 5 years $4,900

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.