News

Federal Tax Credits for Solar Hot Water &Solar Electric Systems

Solar Energy Systems

What are the tax incentives for residential and commercial solar systems?

Homeowners are eligible for tax credits for qualified solar water heating and photovoltaic systems.  Solar water heating systems produce hot water, photovoltaic systems produce electricity.  Businesses are eligible for similar credits for solar equipment, including certain solar lighting systems.  The credits are available for systems “placed in service” in 2006 and 2007.

Who is eligible for the tax incentives?

The tax credits go to individuals who install qualifying systems on homes they use as a residence, and to businesses that install solar equipment for their use.

What are the incentives and how do they work?

The tax credits are for 30% of the cost of the system.  For individuals the maximum credit is $2000 for photovoltaic systems and $2000 for solar water heating systems in any tax year.  To qualify, residential systems must meet certain criteria as follows:

Solar water heating:

  • System must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the state government in which the system is located.  SRCC is an organization set up by the solar industry to test and certify equipment so purchasers have an independent assessment of system performance www.solar-rating.org

  • At least half of the energy used by the system to heat the water must be solar energy.  The credit is not available for expenses for swimming pools or hot tubs.

Photovoltaic systems:

  • System must provide electricity for the residence, and must meet applicable fire and electrical code requirement
What do I have to do to qualify for these incentives?

Implementing regulations are now being developed by the IRS.  We will post a link on this site as soon as these regulations are available.  To qualify, tax payers will probably need to have evidence regarding:

  • the cost of the system (including labor and piping or wiring to connect the system to a home's plumbing and/or electrical systems),
  • when it was placed in service,
  • whether the system meets the qualifying criteria discussed above.
Where can I learn more about qualifying products?

Good sources of information about these systems include:

 

To learn more about other Federal tax credits for energy efficiency, visit:

http://www.energytaxincentives.org/tiap-solar-energy-systems.html

 

Vermont Bank Announces Low-Interest Renewable Energy Loan

Burlington - Chittenden Bank recently announced a new loan program designed
to help finance residential renewable energy systems.

The program offers a reduced interest rate home equity loan when used for
renewable energy purposes such as solar hot water installation, solar panels
for electricity generation, residential wind turbines, etc.

Starting October 1st and running for 6 months, the interest rate on
five-year home equity loans will be discounted 1.00% when the loan is used
for renewable energy systems. The minimum loan amount is $5,000 and the
maximum amount is $50,000.

For more information:
Call (800) 642-5181 or visit www.chittenden.com

DPS RELEASES WIND ENERGY PLANNING PACKET
On October 8th, 2003, the Vermont Department of Public Service released a packet of
resources to help town and regional planners in Vermont plan for utility-scale wind power facilities. The packet was assembled as part of the Wind Siting Consensus Building Project, an initiative to build consensus on the appropriate siting of wind turbines, with special attention to their impact on Vermont's scenic landscape. Renewable Energy Vermont and Vermont Environmental Research associates are partners in this project.

The packet contains sections on the history of wind power in Vermont, the various assessments of Vermont's wind resource, a discussion of the aesthetic impact of wind turbines, and a comprehensive collection of resources related to the siting of wind power facilities, including a paper by Landscape Architect Jean Vissering's titled "Wind Energy and Vermont's Scenic Landscape: A Discussion Based on the Woodbury Stakeholder Workshops."

The packet is available on website of the Department of Public Service's Energy Efficiency Division at http://www.state.vt.us/psd/ee/wind/windpacket.htm.

The Wind Siting Consensus Building Project has three coordinated parts. The
first was a series of consensus-building stakeholder workshops held from February to May, 2002, at the Woodbury Dispute Resolution Center. The second part is the recently released packet of wind energy planning resources. Titled "Wind Energy Planning Resources for Utility-Scale Systems in Vermont," this packet also serves as a summary of the outcomes of the stakeholder workshops. The third part of the project is a state-wide wind energy education and outreach initiative to be conducted this fall.

 

return to top of page

Site Design by Vermont Internet