$2000 federal tax credit for PV systems

[garybeck]

from:
http://www.irs.gov/newsroom/article/0,,id=154657,00.html

Additionally, the new law makes a credit available to those who add qualified solar panels, solar water heating equipment, or a fuel cell power plant to their homes in the United States. In general, a qualified fuel cell power plant converts a fuel into electricity using electrochemical means, has an electricity–only generation efficiency of more than 30 percent and generates at least 0.5 kilowatts of electricity.

Taxpayers are allowed one credit equal to 30 percent of the qualified investment in a solar panel up to a maximum credit of $2,000, and another equivalent credit for investing in a solar water heating system. No part of either system can be used to heat a pool or hot tub.

more details:
http://www.irs.gov/pub/irs-drop/n-06-26.pdf

[T Wolf]

1. Many years ago (late 70s) I worked for NSHCIC

(National Solar Heating and Cooling Information Center) that was the dissemination branch of the DOE demonstration project for solar and conservation. The credit for photovoltaics was around back then as well as credits for conservation activities and solar hot water devices. So this is not really new news.

Usually, it was the rich folks who did PVs and middle class people who did the hot water and insulation because of the costs. Here's hoping this token gesture will have some effect this time around.

PS - when Raygun came in, the center dried up and blew away. We actually were not even allowed to send out information that had been collected. All the brochures that were sitting in warehouses in Silver Spring, MD were destroyed. We were only allowed to refer people who called for information to a list of approved "private contractors" who would sell them the same information that your tax dollars had been spent collecting. They even changed our name to reflect the new approach - putting the words Referral Center in. Typical repuke tactic.

[garybeck]

2. not new news???

it's been 25 years since we had any federal tax credit programs for solar. you're saying it's not new news?

yes, I know there were tax credits under Carter and Reagun took them away. That was a generation ago! This is certainly new news.

this time around, many states have incentives as well, so you can piggyback your credits and get a good deal.

I agree, PV has been for the rich folks in the past. But actually it's not so much just rich folks, as it is for remote applications. People who buy land with no power have been the main customers, because of the cost of brining in utility power.

But the cost of PV has declined, and the cost of utility power has gone up. And there is much better technology, mainly in the area of grid intertie systems. Just in the last 5 years, intertie systems have BOOMED.

So yes this is not the first time we've had tax credits, but it's a completely different situation now, and I disagree that it's "not really new news."