Dear EarthTalk:
What incentives are in place for
homeowners and businesses that want
to install renewable energy systems?
--
Kelly Nemi, Sacramento, CA
Several state and municipal
governments are trying to stimulate
demand for alternative energy by
offering cash incentives to
companies and homeowners that
install solar electric
(photovoltaic) systems, fuel cells,
small wind turbines, solar thermal
systems for heat and hot water, and
other renewable energy technologies.
The website of the Database of State
Incentives for Renewable Energy (DSIRE),
a project of the Interstate
Renewable Energy Council, contains
comprehensive information on state
and federal incentives--tax credits,
grants, rebates and special utility
rates--for renewable energy
technologies.
For example, according to DSIRE,
Anaheim, California’s public utility
is encouraging residential and
business customers to install
photovoltaic systems by offering
rebates of $4 per watt up to $7,000
total for residential systems and
$50,000 for industrial
installations. The state of
Indiana’s Alternative Power and
Energy Grant Program will help
businesses, non-profit organizations
and units of local government (such
as schools) with the costs of
installing solar, wind, fuel cell,
geothermal, hydropower, alcohol
fuel, waste-to-energy and biomass
energy technologies. They’ll pay up
to 30 percent of the project cost,
or $30,000, whichever is less. And
New Jersey’s Clean Energy Rebate
Program pays between $.30 and $5.50
rebates per watt for commercial or
residential solar electric systems,
depending upon size.
These are just a few examples. The
DSIRE website features a United
States map on which site visitors
can click on their state to access
detailed information on what grants,
rebates or tax incentives are
available through their local
governments and utilities. The site
is updated each week and features
new programs as well as changes to
existing ones.
Homeowners can also finance the
purchase and installation of
renewable energy systems through
home-equity loans. This strategy can
help bring down costs through tax
savings, since interest payments on
mortgage loans are tax-deductible.
CONTACTS: Database of State
Incentives for Renewable Energy (DSIRE),
www.dsireusa.org;
Interstate Renewable Energy Council,
www.irecusa.org.
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