Renewable Energy & Energy Efficiency Government Rebates — the Quick & Simple
You’ve probably heard that the government provides some nice financial incentives for going solar or for making your house more energy-efficient, but how do you figure out what you can get? A google search brings up a ton of results, but none of them are too clear. Hopefully this short piece can help.
The thing is, there are numerous corporate and industrial incentives. These help to bring the price of solar down, in general, but they are not something you need to figure out.
For individuals, there are 1 or 2 federal incentives you might benefit from.
1. Residential Renewable Energy Tax Credit
Basically, if you install solar panels, small wind turbines, fuel cells, or a geothermal heat pump at your home, you get a tax credit equal to 30% of the cost of the system. This includes the labor costs (someone coming to your home and installing it).
Of course, there are some details you may need to be aware of — refer to the link above if you want to get into the nitty gritty (or if you want your tax lawyer to).
2. Energy Efficiency Tax Credit
This is pretty much the same as the above, but it applies to energy improvements you make to your home “envelope” (the walls, windows, doors, and roof) or high-efficiency heating, cooling, or water-heating equipment you buy.
Examples of energy-efficient products that count: water heaters, central air conditioners, building insulation, windows, doors, roofs, fans, furnaces, boilers, and heat pumps.
The tax credit is also 30%, but, if the purchase was made in 2011, the maximum total tax credit you can get is $500.
Also, this tax credit, if not renewed by Congress, expires at the end of this year (2011), whereas the Renewable Energy Tax credit expires at the end of 2016.
Again, see the link above for the nitty gritty.
3. More!
Beyond these federal incentives, there are also many state and local incentives available. You can easily search the Database of State Incentives for Renewables & Efficiency for info on those.
Many renewable energy installers (or solar leasers) will help you to get all the rebates or tax credits available to you, and some of them may even have the option for more government incentives, reducing their costs and the price you pay. So, make sure to ask about that when you go to buy (or lease) solar or some other renewable energy.
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