"Please check with your local power company because in many cases they offer rebates to thier
customers for using solar systems."
Federal Tax Credit
The federal government is allowing a 30% federal income tax credit for a residential system with no maximum dollar amount. The tax credit for commercial buildings is 30% of
the solar system costs with no maximum dollar amount.
Tax Deduction
For homeowners who finance their solar system, they may be able to deduct the interest paid.
5-Year Accelerated Depreciation (for Businesses) Modified Accelerated Cost-Recovery System (MACRS) – This is a accelerated depreciation method in which the IRS allows businesses to depreciate the actual cost of a PV system (after ½ of the 30% tax credit has been deducted) over a 5-year period.
These incentives will cover a substantial portion of the total cost, and the result is solar power being competitive with electric utility power. And possibly, depending on inflationary increases in the coming decade(s), be significantly less expensive than the prevailing energy rates of the future.
