Solar Rebates and Tax Incentives Will Not Last Forever

Solar rebates and solar tax incentives

The exact measure of the benefits of solar rebates and tax incentives is a subject of debate. Some question whether the government should allow tax revenues to be trimmed with rebates, given the current economic climate. Others believe that the free market should be allowed to operate, and if people cannot afford solar power, they shouldn’t make the switch.

Personally, I am of the mind that solar rebates and tax incentives are important to encourage property owners to forgo cheaper sources of electricity (coal) in favor of renewable energy. As grid parity – the point at which solar is as inexpensive as coal - comes closer and closer, the need for incentives will diminish.

Since the federal tax credit became available in 2006, solar panel installations have increased 800%. Some of the growth is attributed to falling solar panel costs, but many agree that incentive programs have allowed many people to successfully switch to solar power.

State and local solar incentives vary, depending on where you live. But the federal tax credit incentive covers as much as 30% of the cost of solar photovoltaic (PV) panels is available across the nation. Under pressure to reduce the national debt, lawmakers have set the solar tax credit system to expire at the end of 2016.

The solar tax incentives could end even earlier than 2016, if Republicans make significant gains in the upcoming 2012 elections.

Either way, solar rebates and tax incentives will not last forever. At least not until more lawmakers recognize the importance of continuing to encourage growth in the solar industry. In the meantime, if you are considering installing solar, now may be the time to do so!

Ratings: