30% Off All Solar Installations

Wow!  Who doesn’t like a sale?  For a limited time (until 2016) the federal government is offering a 30% tax credit to homeowners and businesses who choose to install a solar electric (PV) system. 

OK, so this isn’t really a sale.  It’s more like a mail in rebate.

Actually, this deal should sound familiar.   The 30% tax credit has been around for several years, but the catch was that residential systems could only claim up to $2,000.  Now thanks to some bailout hijinks in Washington this cap has been removed.  A full 30% of the investment made by the homeowner can be claimed as a tax credit and if the full credit can’t be taken in the first year it can be carried over.

An added bonus for businesses who install these systems is the opportunity to rapidly depreciate their investment over a five year period.  I always stress the need to talk to your accountant to fully understand how this might affect your finances, but the upshot is that a business can recoup an additional 29% of their solar investment through this depreciation.

The best way to get full descriptions of the new federal tax credits is through DSIRE (Database of State Incentives for Renewables & Efficiency).  This same website offers a good summary about state incentives.  If you live in Maryland or Virginia the specific state incentives may be worth investigating.