Government incentives on solar energy was created by energy policy of the federal tax liabilities for energy in the residential real estate in 2005. It originally applied to the solar electric systems, solar water heaters and battery fuel. The Law on Planning and expansion of 2008 extended the tax credit for small power systems, wind energy and geothermal heat pumps from 1st of January 2008. Other key reviews include an extension of eight years of credit at 31 December 2016; the ability to take credit in relation to the alternative minimum tax; and the abolition of the limit of $ 2,000 for solar energy credits from 2009. The loan was further strengthened in February 2009 by the American Recovery and Reinvestment of 2009, which eliminated the amount of the maximum credit for all eligible technologies (except fuel cells) placed in after the service, 2008.
SOLAR INCENTIVES AVAILABLE FOR HOMES AND BUSINESSES
INVESTMENT TAX CREDIT FOR SOLAR ENERGY
The federal government offers a solar tax credit, known as an Investment Tax Credit (ITC), which provides homes and businesses to deduct a portion of their expenses tax on solar energy. Both homes and businesses are eligible for a federal tax credit equal to 30 percent of the cost of your solar panel system less cash discounts.
THE STATE TAX CREDITS
Some states offer additional tax breaks for the installation of solar panels. With the tax credit for solar state, you can deduct part of the cost of your solar panel system for your state tax bill, similar to the federal ITC. These amounts vary by state.
Sometimes you can get the cash from Government, Municipality, Utility, or other organization that wants to promote solar energy. Discounts are usually available for a limited time, and once installed a certain amount of end solar energy. Discounts can help to further reduce system costs by 10 to 20 percent.
SOLAR RENEWABLE ENERGY CERTIFICATES (SREC)
The laws of some states require utilities to generate a certain percentage of their electricity from Solar energy. If you live in one of these states, the system generates Solar Renewable Energy Certificates (SRECs) for the amount of electricity produced by a solar panel system. Utilities will buy your SREC’s so that they can have their solar energy to meet their needs. Selling your SREC can result in hundreds (even thousands) of dollars in annual sales, according to the SREC market in your state.
PERFORMANCE-BASED INCENTIVES (PBIS)
Some states or public services on the basis of performance (PBIS) subsidies paid to owners of the credit system of solar power per kilowatt-hour of electricity produced by their system. Some PBI programs require the installation of equipment produced in the country to qualify. Unlike SRECs, PBIS should not be sold in the market and incentive rates to determine when the system is installed. PBIs can replace or coexist with net metering policy
Thanks to accelerated depreciation, companies can depreciate the value of their solar energy system thanks to the Modified Accelerated Cost Recovery System (MACRS), which reduces the tax burden on businesses and accelerate performance on solar investments. Qualifying solar equipment is entitled to a five-year cost recovery. Accelerated depreciation can reduce the net cost of the system as an additional 30 percent.
You May be eligible for financing the purchase system of solar panels using solar-interest loans at a reduced interest rate. These loans can be offered his country, non-governmental organizations or their usefulness, but are usually available only for a limited time.
Some states and municipalities do not understand the value of solar panel in assessing property taxes. This means that even if the value of your property is increased by the addition of a solar energy system, your tax bill will not increase on the property – it will remain the same.
In addition, your solar panel system can be exempted from state sales taxes, which could result in significant additional savings based on the sales tax rate in your state.
TAKING ADVANTAGE OF GOVERNMENT REBATES
- • Contact your local power company to ask what the compensation programs of the Government are currently in effect in your area. Be sure to ask about all kinds of discounts: federal, state and local. Ask for references (phone numbers and, if possible, the names of the people to speak with), so you can collect accurate data on the origin of each payment.
- • Follow up on the referrals. When you contact each agency offering discount, be sure to ask about the terms of repayment. Most programs require a reduction of its solar power system to be installed by a qualified solar contractors insist that your solar system is connected to the network of the city. This is so that any power you generate above your own needs can be returned to the grid for others to use.
- • Keep discount expiration periods in mind. Not all programs are ongoing for years at a time, some have cut-off dates. You must have the system running by the deadline in order to qualify for a refund.
WHEN THE GOVERNMENT PROVIDES INCENTIVES
The US solar market ends the best three months in its history, with a total value of three gigawatts of photovoltaic solar capacity expected to be installed from October to the end of the year. A total of about 7.4 gigawatts of photovoltaic solar energy will be built in 2015, surpassing the record of 6.3 gigawatts last year, according to a new report published on December 9 association of solar energy industry products and GTM Research.
This, however, is only a trickle compared to the flood of new projects which should be operational in 2016. GTM Research expects the market to be more than double next year, reaching 15.4 gigawatts of installed solar power in 2016, the overall growth in solar installations compared boom is happening in the United States. The research company based in Berlin, Apricum expects 54 gigawatts to be installed worldwide by 2015, with new capacity additions to 92 gigawatts by 2020, the largest market for photovoltaic solar energy is China, with 180 gigawatts total capacity installed at the end of 2020, followed by the US (83 gigawatts) and Japan (57 gigawatts).
Prices of solar panels and other components continue to fall. But the main reason for the increase in the US is expected in the planned 2016 expiration of the federal tax credit for investments at the end of the year. That changed when Congress passed omnibus legislation that includes spending five-year extension of the investment tax credit for solar projects and wind energy projects.
WHY IS THE GOVERNMENT PROVIDES INCENTIVES
Solar energy provides positive impacts on the environment, contributing to energy independence of the nation, and provides more jobs than oil and gasoline from coal upstream or the United States. To encourage further expansion of solar energy, government, utilities and other organizations to offer solar tax return and financial incentives to make solar energy more affordable for today’s homeowners.