subject: Are Incentives Available To Help Reduce The Cost? [print this page] Are incentives available to help reduce the cost?
Yes, many states offer incentives.
For specific information, call one of the contacts listed under Getting Help at the end of this booklet.
Another excellent source is the National Database of State Incentives for Renewable Energy (DSIRE).
Prepared by the North Carolina Solar Center, this database contains information on financial and regulatory incentives that promote renewable energy technologies.
Net MeteringIn more than 35 states, customers who own PV systems can benefit from laws and
regulations that require net electric meter reading. The customer is billed for the net electricity purchased from the utility over the entire billing periodthat is, the difference between the electricity coming from the power grid and the electricity generated by the PV system. Through net metering, the customer obtains the full retail electricity raterather than the much lower wholesale ratefor kilowatt-hours of PV-produced electricity sent to the utility power grid. The benefits of net metering to consumers are especially significant in areas such as Hawaii and New York, which have high retail electric rates. Utilities also benefit because the solar-generated energy often coincides with their periods of peak demand for electricity.
Property and Sales TaxTax incentives may include a sales tax exemption on the PV system purchase, a property tax exemption, or state personal income-tax credits, all of which provide an economic benefit to consumers by lowering high capital costs. The U.S. government also provides financial support for PV technology through a tax credit for commercial uses of solar
energy. This energy investment credit provides businesses (but not individuals or utilities) with a 10% tax credit and 5-year accelerated depreciation for the cost of equipment used to generate solar electricity.
Buy-DownRebates and buydowns, typically based on the rated power of the system, help to defray
high capital costs and to create competitive, sustainable market growth. In the United States, the
U.S. Department of Energy has been involved in a program known as TEAM-UP, or Technology Experience to Accelerate Markets in Utility Photovoltaics. Through this program, some 80 utilities in 40 states have installed more than 7 megawatts of grid-connected PV; supplier buydowns and consumer rebates range between $2 and $4 per watt.
Residential Energy RateThis is the average retail residential rate for energy from utilities, in cents
per kilowatt-hour. Check your utility bill for your actual rate, pay and how can you reduce it for the minimum rate.
