There are many types of incentives to use solar energy these days. Not only will you be directly contributing to reducing pollution and green house gas emissions, but you are making a smart business decision while doing so. Our government is making a concerted effort to eliminate our dependence on foreign oil and the state-sponsored terrorism, pollution, and fluctuating energy costs that come with it. And they want us to do the same. With the payback time of solar energy systems around 5-7 years depending on install costs and incentives, your solar energy system will be generating pollution-free energy for decades after it was installed. Not to mention the added value and sellability for your home or business. With the world getting smaller every day, the price of brown energy and it’s limitations will continue to rise while everyday while you are making a difference in your world, and in your pocket book.
That being said, let’s look at some of the financial incentives for using solar energy.
The financial incentives for utilizing solar energy have never been bigger or better.
The federal government provides a 30% tax credit for all renewable energy installations as well as efficiency upgrades to your home or business.
Many utilities offer rebates to customers for installing solar energy systems as well as efficiency upgrades. In central Colorado, Xcel Energy offers a $2.85 rebate to customers who install systems under 10 kilowatts. This is sufficient for most homes. The average size of a solar system in Colorado is about 5 kilowatts. With a standard installation rate of $7 - $7.25 per watt, this means Excel is paying for almost 1/2 of your system, and the federal government is paying for another 30% of the costs. So, you are only paying about $1.50 - $2.00 per watt for the entire system. The rebate structure for systems over 10 kW has not changed and includes a $2.50 per watt rebate and a REC payment of $115 for every megawatt hour of energy produced.
The state Colorado also charges no sales tax on renewable energy systems. This can save you up to $1,000 or more on your system cost.
There are many more state and local incentives in all 50 states.