Sunday, January 29, 2012

Attractive Solar Affordability And Incentives Make It Easy To Switch

By Nathan Thompson


The price of fossil fuels like coal, oil and gas continues to increase. As a result, the financial incentive to switch solar energy grows stronger. Additionally, there are environmental advantages favoring a switching to non-carbon polluting energy sources like solar. Governments support the trend. They have introduced policies to improve solar affordability and incentives to encourage homeowners and business leaders to go solar.

Both national and state governments extend incentives. The range of incentives is very large. In the USA, the federal 2005 Energy Bill was a landmark piece of legislation that provides significant benefits for people installing solar systems. It established a 30 percent residential energy credit for solar for two years capped at two thousand dollars. At the regional level, sun states like California, Texas and Florida are leaders in offering incentives.

A specific case study may be helpful for readers. In Florida, a homeowner installing fifty or sixty thousand dollars worth of energy product can expect to receive tax credits and rebates valued at over fifteen thousand dollars. The precise amount will depend on the particular products installed. Solar water heaters, a solar pool heaters and solar power (photovoltaic) systems attract particularly strong incentives.

The federal government offers tax incentives for the purchase of solar photovoltaic systems that generate electricity and solar water heaters. At the state level, Florida provides rebates on the purchase of solar water heaters and pool heaters. Arrangements vary from state to state.

Subsidized finance is also provided. Green loans at government subsidized rates are available to support purchase of solar products. Fannie Mae allows home owners to roll-up the purchase price into their home mortgage loan. This allows the homeowner to finance the purchase at a home mortgage interest rate rather than a higher interest rate applying, for example, to a personal loan.

Photovoltaic systems that have back-up storage in a battery bank have the advantage of being able to maintain electricity supply to a household even when there is an outage on the public grid. Solar pool water heaters can supply up to 100 percent of the heating needs for many family pools, significantly extending their swimming season.

In summary, the switch to solar energy products is firmly underway by homes and businesses alike. Solar affordability and incentives offered by national and state governments assist the switch. The environment is better for it.




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