Solar Hot Water Incentives and Credits
Federal and State governments have began to recognize, and even assist, the growing move toward renewable energy, green living, and have instituted a wide ranging number of assistance programs to help prospective owners with the purchase of their systems.
Currently there are a number of Federal and State credits, incentives, and rebates for both Solar Hot Water (solar thermal) Systems and Photovoltaic (PV or Solar Electric) Systems.
Many states, similar to the Federal Government, offer tax credits on the purchase of Solar Hot Water and Solar Electric Systems. However, states also provide incentives such as rebates, grants, production credits, sales tax exemptions, and more. It is imperative that you have a firm understanding what incentives are available to you, and where, how, and when to apply before you purchase your Solar Hot Water System.
The most comprehensive database of Incentives, Credits, and Rebates for Solar Hot Water and Solar Electric Systems is:
DSIRE: Database of State Incentives for Renewables & Efficiency The Federal Tax Credit Residential Solar and Fuel Cell Tax Credit
The Energy Policy Act of 2005 established a 30% tax credit up to $2,000 for the purchase and installation of residential solar electric and solar water heating property. An individual can take both a 30% credit up to the $2,000 cap for a photovoltaics system and a 30% credit up to a separate $2,000 cap for a solar water heating system. A 30% tax credit up to $500 per 0.5 kilowatt (kW) is also available for