Smart Investment

With solar panel system prices falling and the recent extension of the Federal and state tax incentives, solar power is more affordable now than ever. Additionally, according to the U.S. Department of Housing and Urban Development, you gain $20 in home value for every $1 reduction in annual utility costs. From Business 2.0 Magazine: “New tax credits and rebates are making solar-powered conversions as smart as redoing your kitchen. Before you drop $40,000 or more on a new kitchen or master bath, consider the newcomer on the renovation block: a rooftop solar-power system that not only will lower your overhead costs and insulate you from a volatile energy market but will likely add just as much to your home value over the long haul. A study in Appraisal Journal found that for every utility-bill dollar saved annually because of an improvement, you gain$20 in property value. So if you can zero out a $1,000 annual electric tab by installing solar, you'll get back$20,000 in home value.”

Solar panel systems provide a renewable, non-polluting energy source for the home. They can provide electricity or replace the gas-guzzling water heater. Solar panels last a lifetime, require very little maintenance, and once they are paid off they provide free energy. Solar panel systems also allow the customer to connect to the city power grid and actually sell energy back to their utility when the panels are producing more energy than they are consuming. They can watch their meter spin backwards as they sell energy back to Louisville Gas & Electric (LG&E).

FEDERAL AND STATE TAX CREDITS

Another benefit of installing solar is that in October, 2008, the U.S. Congress passed an extension of the 30-percent federal investment tax credit for both residential and commercial solar installations to the year 2016. The extension also included the elimination of the

Smart Investment

$2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit. The following quotes from industry leaders emphasize the significance of the extension:

"By passing this bill, Congress has finally given the solar energy industry 'policy certainty' that will attract investment, expand manufacturing and lower the cost of solar energy to consumers. This will allow companies like mine to move forward with expansion plans to serve the growing U.S. market (Roger Efird, Solar Energy Industries Association (SEIA) chairman and president of Suntech America, a leading Chinese solar power manufacturing company.).”

"This bill puts the sun to work for every American. And by 2016, we expect solar energy to be the least expensive source of electricity for consumers. Over the last 2 years, these tax credits have turned the solar industry from a small, cottage industry into an economic engine for America. Electricians, plumbers, roofers and construction workers can now get back to work. These jobs are the backbone of the American economy and the solar industry is creating them at a time when they are needed the most (SEIA president Rhone Resch).”

Please consult an accountant and visit the following website for more information on calculating your Federal and state tax rebate: www.dsireusa.org