Financial Incentives for Using Solar Power in Your Home

It is undeniable that energy prices are going through the roof. Just take a look at your utility bill. The good news is using solar power can save your bank account, particularly with new incentives.

Personal Tax Credit and Deductions

If anything is more aggravating than exploding energy costs, it's your tax bill. New and established government programs let you attack both by going solar. The first method is by simply saving money on taxes. If you install a solar energy system on your home, the federal government is going to give you a tax credit of up to $2,000. Tax credits reduce your tax liability dollar for dollar unlike deductions which are subtracted from your gross income. A majority of states now also offer tax credits you can use when paying state taxes. Each state handles the matter differently, but you can expect to get a credit for a percentage of your installation cost or a fixed figure.

Net Metering

Net metering is a concept that has resulted in exploding sales in the solar energy industry. Net metering refers to state laws that require utilities to purchase power generated from your residential solar system at the same price the utilities would otherwise charge you for electricity. In effect, net metering lets you use the utility company as a battery. While you are at work during the day, your solar system sends energy to the utility and your power meter actually runs backwards. When you come home at night and use power, the power meter runs forward. All and all, net metering will either slash or completely eliminate your utility bill. With solar panel systems having a life of 40 years, think how much money you'll save! While a majority of states have net metering laws, not all do. Make sure to check if yours does.

Property Tax Incentives

Property taxes. How we all hate paying property taxes. Well, many states now provide exemptions, exclusions or credits for homes with solar power. Each state handles this issue differently, so look into the potential savings in yours.

Rebate Programs

To promote solar energy, rebate programs are offered to homeowners by states and utilities. Again, the characteristics of such programs vary wildly, but typically come in the form of rebates ranging from a couple hundred bucks to $4,000 or more.

With your utility bills going through the roof, it is time to consider steps you can take to save money. The economic benefits of going solar have never been better, which makes now the time to convert.

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.

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/.

Home Improving with Solar – The Important Concept of Gain

You've decided to pursue a solar home improvement, but aren't so keen on the idea of putting panels on your roof. No worries, you just need to understand the concept of gain.

I Gotta Gain Some Heat

I'll cut to the chase – gain refers to how you generate heat for your home without solar panels. You can think of it as gaining heat by manipulating the power of the sun. There are three categories of gain: direct gain, indirect gain and isolated gain. So much for the mumbo jumbo, what are we really talking about here?

Direct gain refers to improving your house in a manner that allows the sun to...[drum roll]...directly provide power in the form of heat to your home. For instance, if you install large windows in the south facing side of your home and put down heat storing flooring such as masonry, you are pursuing direct gain. The sun will directly heat the home through the windows during the day and will also heat up the flooring. As the sun goes down, the flooring will continue to radiate heat. The advantage of direct gain is it is fairly easy to implement. The disadvantage is it only works during the day and for a few hours afterwards if you've put in a heat storing flooring material.

Indirect gain is a bit more complicated. It refers to the idea of using a structure between the exterior and interior of the house to store heat produced by exposure to sunlight. The basic idea is to get more heat production for a longer period of time. Indirect gain is typically accomplished by building a thermal wall out of masonry, known as a Trombe Wall, as the south facing wall of your home or a part of it. The wall is built out of a material that absorbs heat such as concrete or brick and then has glass placed over it. Put another way, the south wall is a window with a brick wall behind it. The wall materials suck up the power of the sun and store heat. This heat is then radiated when you need it by opening vents in the wall. The advantage of indirect gain is you get longer, more controlled heating. The disadvantage is you have the world's weirdest looking window on the south side of your home.

Isolated gain is a simple concept. Have you ever used a greenhouse to grow flowers or tomatoes or...well, something? Isolated gain works just like a greenhouse, except you are providing heat to yourself instead of plants. Essentially, you build a self-contained glass structure on the south side of your home which is also well insulated. The structure heats up in the sun during the day to very high temperatures. When you need heat, you just turn on a fan, which moves it into the house through venting you've installed.

The beauty of any of these systems is they are fairly simple concepts to understand. If solar panels don't appeal to you, just go for some gain.

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

Solar Rebates For Home Improvement

American’s love rebates. Whether rebates are offered on computers, software, cars or whatever, we snatch them up. If your considering going solar, you’ll be happy to hear rebates are available.

Solar Rebates

As most people know, a rebate is a give back by a company in exchange for the purchase of their product. Rebates usually come in the form of money if you send in a coupon, but can also come in the form of upgrades and add-ons.

The solar technology industry is so thick with rebate programs it is hard to see the forest for the trees. You can expect to find rebates being issued by the manufacturer of a product, the federal government, your state government and possibly even your country and town or city. In many locations, the local utility company may also give you a rebate on your bill for going solar. No other source or product line has as many rebates as the solar industry. Why? Because solar represents one of the cleanest and cheapest energy sources in our country. The powers that be want to promote it for monetary and environmental reasons, not to mention providing some relief to our overtaxed national electric grid system.

Buy down rebates are the most voluminous in the solar industry. With a buy down, a government agency will pay for a percentage of the solar platform you purchase. The specific amount of the buy down depends on factors such as what the platform is used for and the amount of electricity it produces. Trust me, your local solar vendor will be able to tell you in detail about the rebate since it is a good sales technique.

When investigating rebates for your solar purchase, it is important that you don’t stop at the first program. If a state has one rebate program, it will often have as many as eight others. You can often qualify for three of four, which can cut your initial costs by as much as fifty percent.

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.