Question:

Some solar energy providers are promising 50% or more savings from Federal and State tax credits. How can that be? And how long will these tax credits be in effect for?

Answer:

Thank you for your question. That statement concerns us because it jeopardizes the integrity of the solar industry. Currently a consumer qualifies for approximately 40%-45% savings thanks to state and Federal incentives. Many dealers are claiming 50-70% and then encouraging the customer to find a way to write it off as part of their home business expense. If your accountant agrees that you are able to take advantage of that commercial tax break than naturally that is a great deal for you. We prefer to educate the consumers that they qualify for a 30% federal tax credit and a state rebate. The combination of the two typically equals 40%-45% of the systems installed cost. This is a more fair expectation for the customer and does not put them in a situation where they have to play dangerous games with the IRS. As always your accountant will have the final say in how much credit you are capable of utilizing.

As far as how long will they last…. That is the million dollar question. There is concern that the tax credits may be vulnerable to being trimmed by the federal government. In order to get the budget under control everything may take a hit so we will keep our fingers crossed that they escape that and last the proposed term.

State rebates on the other hand are going away fairly rapidly. These are on a declining scale and are about to drop yet again. The state rebate currently is paying out at $1.55/installed watt (AC) and they will drop to $1.10 once the allotted installation amount is met. These will continue to decline until they are gone. So the longer people wait the less state incentives they qualify for.

I hope this answers your question. Ethics is always an issue in sales, especially in emerging industries, so the more aware and educated you find yourself the better you can pick an honest partner to install your solar system.

We do have solar operated jack pumps which can pump water like your windmill water pump but we don’t have a system that can run the existing windmill pump. We could use an electric wind mill and electric panels to run a jack pump so when the wind didn’t blow the electric panels would continue to pump water.