The government is taking a strong stance to support the development of renewable energy technologies. With subsidies and the right market conditions, renewable energy generators are as cost effective as traditional fossil fuel power plants. There are numerous federal and state incentives that apply to projects of all scales. PurePoint Energy’s thorough knowledge of these incentives will save your project time and capital.
FEDERAL INCENTIVES
Residential Solar and Fuel Cell Tax Credit
The Energy Policy Act of 2005 established a 30% tax credit up to $2,000 for the purchase and installation of residential solar electric and solar water heating property. An individual can take both a 30% credit up to the $2,000 cap for a photovoltaics system and a 30% credit up to a separate $2,000 cap for a solar water heating system. A 30% tax credit up to $500 per 0.5 kilowatt (kW) is also available for fuels cells. (dsireusa.org)
Business Energy Tax Credit
For eligible equipment installed from January 1, 2006, through December 31, 2008, the credit is set at 30% of expenditures for solar technologies, fuel cells and solar hybrid lighting; Maximum incentive: $500 per 0.5 kW for fuel cells; no maximum specified for other technologies. (dsireusa.org)
Renewable Electricity Production Tax Credit (PTC)
REPC now applies to the following resources: wind, closed-loop biomass, open-loop biomass, geothermal energy, small irrigation power (150 kW - 5 MW), municipal solid waste, landfill gas, refined coal, hydropower, and Indian coal.
The Renewable Electricity Production Credit (PTC) is a per kilowatt-hour tax credit for electricity generated by qualified energy resources. The PTC provides a tax credit of 1.5˘/kWh (in 1993 dollars and indexed for inflation) for wind, closed-loop biomass and geothermal. Currently, the PTC for these technologies is 2.0˘/kWh. Electricity from open-loop biomass, small irrigation hydroelectric, landfill gas, municipal solid waste resources, and hydropower receive half that rate -- currently 1.0˘/kWh. (dsireusa.org)
Modified Accelerated Cost-Recovery System (MACRS)
Under the Modified Accelerated Cost-Recovery System (MACRS), businesses can recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. For solar, wind and geothermal property placed in service after 1986, the current MACRS property class is five years. With the passage of the the Energy Policy Act of 2005, fuel cells, microturbines, and solar hybrid lighting technologies are now classified as 5-year property as well. (dsireusa.org)
STATE INCENTIVES FOR SOLAR
Many states encourage the implementation of solar technologies. We offer a rating of state incentives for solar installations. PurePoint Energy stands ready to design and develop Photovoltaic and Solar Thermal systems nationwide. PPE encourages you to seek our assistance in developing a system that will reduce your electricity bills, help offset the environmental dangers of growing carbon emissions and assist with our energy independence.
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Excellent Solar Incentives
Connecticut |
Great Solar Incentives
California |
Good Solar Incentives
Arizona |
