When the subject of solar energy comes up, you often hear comments about how it would be nice to harness the power of the sun, to be less dependent on the utility company or foreign countries, or to be environmentally sensitive. But, they say, solar technology is still so very expensive. They are right … kinda.
Solar systems are expensive at initial purchase. But high quality equipment is never cheap, and this equipment lasts for decades and will pay for itself many times over during its lifespan. But best of all, there are numerous federal, state and local incentive programs that can substantially reduce your cost of ownership.
The number of federal, state and local programs are many, and in this page we will look at an overview of residential incentives only. If you are a commercial customer, or involved in agriculture, there are completely different programs that we would be happy to go over with you at your convenience.
The following is a high-level overview of federal residential incentives as well as state programs in Maryland, West Virginia, and Pennsylvania. Please contact us with any questions – it is very important to fully understand the financial incentives that are available.
Federal
Incentive Type: Personal Tax Credit
A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit can be carried forward until 2016. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.
Solar-electric property
Solar water-heating property
Maryland
Follow Link For More Information
Incentive Type: Grant
Maryland's Solar Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners, businesses, local governments and non-profit organizations that install solar water-heating systems or solar-electric (PV) systems. Both grid-connected and off-grid PV systems are eligible for supportThe current Solar Energy Grant Program (effective for applications received on or after September 1, 2009) provides incentives as follows:
| First 2,000 watts | $1.25 per watt | $2,500 |
| Watts 2,001 - 8,000 | $0.75 per watt | $4,500 |
| Watts 8,000 – 20,000 | $0.25 per watt | $3,000 |
Based on the above, a typical 4,000 Watt residential system would qualify for a grant of $2500.00 for first 2000 watts, plus $1500.00 for watts 2000-4000 for a total grant of $4000.00
Contact:
Solar Energy Grant Program
Maryland Energy Administration
60 West St. Suite 300
Annapolis, MD 21401
Anne Arundel County
Incentive Type: Residential property tax exemption
One time property tax credit equal to the net cost of the system, (total unit and installation cost minus any federal and state tax credits), up to the value of the property taxes on the building for one year with a maximum of $2,500.One time property tax credit equal to the net cost of the system, (total unit and installation cost minus any federal and state tax credits), up to the value of the property taxes on the building for one year with a maximum of $2,500.
Harford County
Incentive Type: Property tax credit
$2,500 flat credit, but cannot exceed the total real property taxes paid in that year One time property tax credit equal to the net cost of the system, (total unit and installation cost minus any federal and state tax credits), up to the value of the property taxes on the building for one year with a maximum of $2,500. $2,500 flat credit, but cannot exceed the total real property taxes paid in that year
Howard County
Incentive Type: Property tax credit
Tax credit is equal to 50% of the total cost of the system up to $5,000 for PV and geothermal heating and up to $1,500 for solar water heat.
Montgomery County
Incentive Type: Clean Energy Rewards Program
Residential consumers receive a credit of 1 cent for each kilowatt-hour (kWh) of eligible clean energy purchased. Non-residential customers will receive 1.5 cents per kWh. To be eligible for the credit, at least 50% of one’s annual electricity use must come from clean energy sources. Incentive Type: Residential property tax credit
50% of the total system cost up to $5,000 for a heating and electricity generating system and $1,500 for a hot water supply system
Prince George’s County
Incentive Type: Property Tax Credit
Tax credit is equal to 50% of the cost of the system, up to $5,000 for heating and cooling systems and $1,500 for water heating systems.
West Virginia
Incentive Type: State Tax Credit
In 2009 West Virginia passed legislation 2009 authorizing a solar energy tax credit for residential installations. The tax credit, which is 30% of the cost to purchase and install the system, is capped at $2,000. Eligible technologies include systems that use solar energy to generate electricity, heat or cool a residence, or provide hot water or solar process heat for use in the residence. Solar systems for heating a pool or hot tub are not eligible.
If the credit exceeds the taxpayer's liability for that tax year, the unused portion of the credit may be carried forward to "each of the next taxable years" until it is used.
Contact:
Taxpayer Assistance - WV State Tax Dept
West Virginia State Tax Department
Charleston, WV 25328
Phone: (800) 982-8297
Phone 2: (304) 558-3333
Web Site: http://www.state.wv.us/taxdiv/
Pennsylvania
Incentive Type: State Rebate Program
Amount: Residential PV $2.25 per watt DC. Maximum is the lesser of $22,500 or 35% of installed costs
The Pennsylvania Sunshine program offers rebates to residential and small commercial residents that install photovoltaic (PV) and solar thermal. It was authorized in July 2008 by the state legislature and began accepting applications in May 2009 under the administration of the Pennsylvania Department of Environmental Protection (DEP). Only systems installed after the date of program opening are eligible for rebates. A total of $100 million (funded through state bonds) is available for rebates over the lifetime of the program. The DEP expects the program as a whole to last three to four years.
All residential applicants must be Pennsylvania residents, own the home upon which the system is installed, and use it as a primary residence (i.e., vacation homes and investment properties do not qualify for residential rebates). Small business applicants must be for-profit entities located within the state of Pennsylvania with no more than 100 full-time employees. This definition includes producers of an agricultural commodity. Low-income residents (60% or less of median state income) are eligible for higher incentives than other applicants.
It is important to note that residents and small businesses do not submit incentive applications themselves. Applications must be submitted on behalf of the applicant by an approved installer. Households are eligible for only one PV and one solar thermal rebate.
Public Information - PA Sunshine
Pennsylvania Department of Environmental Protection
Office of Energy and Technology Deployment
PO Box 8772
Harrisburg, PA 17105-8772
Phone: (717) 783-8411
Web Site: http://www.depweb.state.pa.us/energy
