The Government Energy Tax
Credit Makes Solar More Attractive

Tax Incentives for Residential Solar Projects

An energy tax credit is now being offered by the Federal and State governments for residential solar power projects. The government is looking to expand the use of solar energy and now is providing incentives to people that are doing the same. The facts about solar energy are clear. The more solar power systems that are employed, the less pollution that we put into the environment.

The following is information on the available tax credit if you are considering residential solar power.

The government lists the tax incentives on its Energy Star web site. Make sure that you are looking at the residential application and not for commercial building. Go to the government website and see the home solar power incentives that are listed there.

The federal government uses form #5695 to allow you to enter the cost that you incurred for the installation of a solar energy system. Consumers can get a tax credit for 30% of their total cost of their solar system up until December 31, 2016.Be sure to check this regularly. It is subject to change without notice.

This applies to Photovoltaic and water heating systems. There used to be a ceiling on the total investment amount that an individual could receive as a tax credit. That has changed. Maximum dollar amounts for systems have been waived as of January 1, 2009.

Costs that qualify under the new provision include the money you spent on the solar system and all applicable parts and hardware. For the do-it-yourself person, the cost of the system becomes much more attractive and affordable with the credit.

For residents that invest in solar electricity projects there are possibly further incentives offered by the state you live in. A state-by-state database was established to catalog the incentives for renewable energy projects.

It is called DSIRE (Database for State Incentives for Renewables and Efficiency). Check it out at the state database website.

The government is offering this incentive for people to take the initiative to make energy conservation improvements. Whether you are a DIY solar power person or one that has a company do the installation, the solar energy facts realized by the government and forthcoming energy tax credits makes these projects much more attractive.

With the energy tax credit, these projects are starting to seem downright affordable. You can move forward knowing that you are not only saving money with the credits but also reducing your carbon footprint by using less fossil fuel.



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