Solar power is soaring due to federal tax credits
Solar power is soaring due to federal tax credits granted in the United States. In a recent study by Solar Energy Industries Association (SEIA), the total number of United States households equipped with solar panels has risen to around 700,000. Around 66,440 new solar systems were installed in just the first three months of this year, breaking records for previous numbers of installations per quarter. Some of the reasons for this dramatic increase in residential solar installations are decreasing panel costs, growing global acceptance, vastly improved technologies, and generous federal tax credits.
This federal tax credit is averaged at a 30 percent rebate off the cost of a solar system, which can greatly decrease the initial costs of solar investments. The incentive, called the residential renewable energy tax credit, was put into action by the Energy Policy Act of 2005 as a way to provide federal tax credits for solar-electric systems. In 2009 The American Recovery and Reinvestment Act removed the maximum credit amount for all eligible technologies installed after 2008, according to the Department of Energy.
“These are not just solar enthusiasts anymore,” says Tom Kimbis, SEIA’s vice president of executive affairs. “The vast majority of residential installations — by a long shot — are done because solar is affordable and it’s saving money.”
If you are an environmentally conscious individual who wants to know more about the cost of solar panels for your home, contact SolarMax Technology. Our excellent customer service team can help you efficiently navigate the field of renewable energy and inform you about California’s solar rebates and solar financing.