Tax Credit for Going Solar

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.

About The Author
Rick Chapo is with http://www.solarcompanies.com – a directory of solar energy and solar power companies. Visit http://www.solarcompanies.com/articles to read more solar electricity articles.

Photovoltaic Systems - Energy From The Sky

As people search for alternatives to fossil fuel energy, solar energy emerges as one of the cleanest and most practical sources of electricity. Solar panels can be installed on rooftops or any area that receives a lot of sunshine. The solar panels consist of a photovoltaic system that converts the energy of the sun into electricity.

Photovoltaic systems have existed since the 1950s but only in recent years has the technology matured to the point of making it a viable alternative to power utilities. Indeed, most solar systems do not replace the utility company, instead they work in conjunction with it to produce extra electricity that can be fed back into the grid.

One of the main problems with solar power is storing it for use during non-daylight hours. Batteries can be used but they are expensive and have a limited life span. As an alternative, excess solar electricity can be fed back to the power utility company for a credit, and then power can be drawn when needed. In a sense, the utility company becomes the storage device.

Most municipalities have legislation requiring power utility companies to accept electricity produced by solar panels or wind turbines. This system benefits everyone – there is less dependency on fossil fuel power plants and electricity costs are reduced for owners of photovoltaic systems.

Photovoltaic cells produce electricity by using specially treated materials such as silicon that convert light into power. They can be of almost any size and are suitable for providing electricity for small items such as calculators or watches right up to complete industrial complexes. Because they can be wired together, an array of solar cells can produce enough electricity for residential or commercial needs.

The main requirement, of course, is sunlight. This makes solar power most practical for southern areas such as California and Arizona. But it can also be used in more northerly areas as a backup power system. As the technology advances, photovoltaic cells are able to produce usable amounts of electricity even in low light conditions.

About The Author
Ross McIvar is the leading author of http://www.alternative-energy-guide.com/.

How to Select an Installer for Your Solar Panels

With the new rollout of massive federal tax credits, state subsidiary programs and net metering, going solar makes sense. So, how do you pick an installer for your system?

Install My System

As with any major part of your home, installation of a solar platform should be done by a professional. Many of the tax credit and rebate programs require professional installation and failure to do so can lead to the loss of the benefits. In short, there are practical and economic reasons to get it done right.

While a solar platform is necessarily a form of electrical generation, you shouldn’t assume every electrician knows how to install one. In truth, most do not. Instead, you can visit a site like solarcompanies.com to find businesses in your state, search on the web or simply pull out the phone book. In states such as California, installers are plentiful while other locations may require a bit of hunting.

Once you’ve located potential installers, make sure to ask some questions. Do not pick the lowest price or first one you find. Use your common sense and ask the same questions you would to any contractor installing something on your home.

The first question to ask is whether the installer has, in fact, installed systems before, how often and for how many years? You do not want a neophyte handling your installation. Installation experience is vital because certain elements of solar systems are very unique, particularly if you are tying into a grid system for a utility company. If you are tying in, make sure the installer has experience doing such installations, not just putting up solar panels.

The second question to ask is whether the installing company is licensed. Most solar installers will be required to have an electrician’s license. Contacting the state electrical board to ask about the installer is a wise move. For some state rebates, you may also have to use an installer that has a solar contractor specialty license. Again, the state electrical board should be able to help you out with this.

This may all sound a bit confusing, so let’s turn to the easiest method for finding installers. When in doubt, contact the manufacturer of your system. Many manufacturers have a list of approved installers. If not, they typically can make recommendations regarding various entities that handle the job for you.

About The Author
Rick Chapo is with http://www.solarcompanies.com – a directory of solar energy and solar power companies. Visit http://www.solarcompanies.com/articles to read more solar electricity articles.

How to Select an Installer for Your Solar Panels

With the new rollout of massive federal tax credits, state subsidiary programs and net metering, going solar makes sense. So, how do you pick an installer for your system?

Install My System

As with any major part of your home, installation of a solar platform should be done by a professional. Many of the tax credit and rebate programs require professional installation and failure to do so can lead to the loss of the benefits. In short, there are practical and economic reasons to get it done right.

While a solar platform is necessarily a form of electrical generation, you shouldn’t assume every electrician knows how to install one. In truth, most do not. Instead, you can visit a site like solarcompanies.com to find businesses in your state, search on the web or simply pull out the phone book. In states such as California, installers are plentiful while other locations may require a bit of hunting.

Once you’ve located potential installers, make sure to ask some questions. Do not pick the lowest price or first one you find. Use your common sense and ask the same questions you would to any contractor installing something on your home.

The first question to ask is whether the installer has, in fact, installed systems before, how often and for how many years? You do not want a neophyte handling your installation. Installation experience is vital because certain elements of solar systems are very unique, particularly if you are tying into a grid system for a utility company. If you are tying in, make sure the installer has experience doing such installations, not just putting up solar panels.

The second question to ask is whether the installing company is licensed. Most solar installers will be required to have an electrician’s license. Contacting the state electrical board to ask about the installer is a wise move. For some state rebates, you may also have to use an installer that has a solar contractor specialty license. Again, the state electrical board should be able to help you out with this.

This may all sound a bit confusing, so let’s turn to the easiest method for finding installers. When in doubt, contact the manufacturer of your system. Many manufacturers have a list of approved installers. If not, they typically can make recommendations regarding various entities that handle the job for you.

About The Author
Rick Chapo is with http://www.solarcompanies.com – a directory of solar energy and solar power companies. Visit http://www.solarcompanies.com/articles to read more solar electricity articles.