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Financial Incentives For Using Solar Power In Your Home
By Rick Solare

Financial Incentives For Using Solar Power In Your Home
By Rick Solare
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

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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.

Rick Chapo is with SolarCompanies.com - a directory of solar energy companies. Visit us to read more articles about solar power and solar energy rebates.

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