Law increases Maryland grants for residential solar power systems
by Andrew Cannarsa, The Examiner /Apr 26, 200
Source: Examiner.com
http://www.examiner.com/a-1361018~Law_increases_Maryland_grants_for_residential_solar_power_systems.html?cid=temp-popular
Maryland’s solar energy market appears to have a bright future. Gov. Martin O’Malley on Thursday signed into law several bills aimed at lowering the cost of solar energy systems for Maryland homeowners. The incentives were raised to encourage an increase in solar product sales, production and future job opportunities in the solar market. “Gov. O’Malley has really stepped up to say that Maryland is going to be a leading state in solar energy,” said Peter Lowenthal, executive director of the Maryland-D.C.-Virginia Solar Energy Industries Association.
“We’re really looking to try to provide enough incentives for people who want to get involved in solar and geothermal energy,” Lowenthal said. O’Malley signed House Bill 377/Senate Bill 207, which increased state grants for solar electric installations from 20 percent of the cost of the system, or a maximum of $3,000, to $2,500 per kilowatt of installed capacity, or a maximum of $10,000.
Lowenthal said the increase could amount to 25 percent of the cost of a solar electric system. “That’s a pretty sizable chunk,” he added. The bill’s tax provisions make the sale of the solar systems exempt from sales or use tax, which is 6 percent of the material cost of solar hardware.
The bill also exempts the owners from property taxes on the value of their solar technology, meaning they don’t have to pay additional property tax on the value of the system, though their property value may increase to any amount. “It’s a good step in the right direction,” said Tony Clifford, president of Standard Solar, a Gaithersburg-based solar energy products company. “This sends a message that the state really wants to promote solar.”
Clifford said the increase in the incentive for a solar electric system from $3,000 to $10,000 should stimulate the solar energy market. “There are a lot of people that are interested in solar, and I think we’re now really going to see an increase in business,” Clifford said.
O’Malley also signed into legislation bills that establish the Maryland Strategic Energy Investment Fund and the Maryland Strategic Investment Program to promote affordable, reliable and clean energy. “We must do all that we can to preserve our natural resources and secure Maryland’s energy future,” O’Malley said in a statement.