Australian Congress increases the rebate for solar electric energy
By Susan Wilson, December 23, 2008 |
Source: http://tech.blorge.com/Structure:%20/2008/12/23/
congress-increases-the-rebate-for-solar-electric-energy/
While the Stock Market continues its impression of a yo-yo, one investment is continuing its uphill climb. Solar installations are continuing to be an excellent investment especially with the increase in tax credits. Congress finally passed an energy bill in October of this year that extended or increased tax credits for renewable energy. At least one solar company was threatening to pull out of the U. S. market if the credits were not renewed.
According to DESIRE, the Energy Improvement and Extension Act of 2008 changed several facets of the original Energy Policy Act of 2005. The 2008 Act not only renewed the solar electric energy tax credits but also increased the amount of that credit. Until Dec. 31, 2008, solar electric credits are limited to 30 percent of the cost of a solar electric system up to $2000. Starting on Jan. 1, 2009, that credit jumps to 30 percent of the cost of the system without a cap.
Since most solar electric systems cost over $10,000, this greatly increases the tax credit received for typical solar energy installations making them more affordable. In the current economy, more affordable is great. Solar thermal energy installations have the 30 percent credit incentive as well, but the rebate is capped at $2,000. For the first time, solar electric energy may actually be more appealing than solar thermal energy which typically has a lower overall cost.
The 30 percent credit covers the cost of the system, the labor to have the system installed and wiring of the home to connect the system. Solar electric installations require not just the solar panels, but also batteries, inverters and other additional equipment.
Installations of solar thermal systems frequently require the connection of pipes to the solar panels, a cost that is included in the 30 percent credit as well. One other advantage is that this tax credit can be taken against the Alternative Minimum Tax (AMT). Any excess credit can be carried over to succeeding years.
Since the rebate is counted after the installation is complete, a new solar electric system would be the perfect holiday gift that will continue to give for many years to come.