Solar Incentives Being Reconsidered

How long does solar have?

Over the last year we’ve seen an incredible growth in solar photovoltaic installations. In fact, it’s the largest growing industry in America today. 2010 saw a 60% increase in residential and commercial solar installations over 2009. The primary reason being that homeowners and business owners are enjoying the benefits of several financial incentives. But those incentives are at risk of being canceled with the latest budget cuts and if you’ve been on the fence about going solar, you’ll want to be sure to beat the clock.

The first incentive is the Federal ITC (Investment Tax Credit) for 30% the cost of the system. But, that’s not where it stopped. In 2009 congress voted into the legislation the ability for businesses to receive a 30% tax GRANT for installing solar systems. In other words, instead of having to fund it ALL up front and then wait for your rebate/refunds, you now only need to pay for the remaining balance. When you combine this with local utility incentives you’re looking at several thousand dollars’ worth of savings.

In congress these incentives are being reconsidered. Federal and state budgets are tighter than a Humvee squeezing under a garage door, and big ticket items like the ITC program are being targeted. Solar manufacturers and contractors and their employees are the ones who will lose out as most families and businesses won’t be able to justify the cost of going solar without these incentives. As it stands now, most systems will have a 5-7 year return on investment, but without these incentives it’ll likely be closer to 10 years or more... A cut off most buyers just can’t justify. Does it still make financial sense? Yes, but there’s other things homeowners and businesses can do with that money that might suit their needs better during those ten years.

The bottom line is this. While the solar photovoltaic industry has seen an incredible gain in market share, it’s largely the result of these substantial subsidies that make it affordable enough for the common home and business to participate. Without those we’ll see a significant decline in sales that will hurt the industries growth, technological advancement, and acceptance.

Nevada has been an up and comer in the solar industry. While the rebates were offered sales were brisk, keeping contractors, construction workers, and consultants in work. Now that those rebates have been exhausted, sales have grown stagnant resulting in some layoffs as previous work comes to a close.

What does this mean to a prospective buyer? Deals are to be had. Contractors are eager to earn your business and are offering their best internal prices yet. The days of big rebates might be coming to a close, and for the prospective buyer, should provide the motivation to get while the gettin’s good.

Chris Keenan is a green and general blog writer. He writes for many sites including Precision Garage Door. Chris also maintains a personal blog at The Keenan Cookbook