Why Going Solar Is More Affordable Now?

If you have been looking into going solar but think it is too expensive, you may be able to go green sooner than you think.

Anyone who has looked into going solar or wants to go solar can now benefit from the decrease in solar panel prices and the increase in federal and state incentives that subsidize solar. According to investment bank analysts at Piper Jaffray, the price of panels have dropped nearly 40 percent compared to last year. What is driving the cost down? Simple supply and demand as well as the decreasing cost of raw materials.

Although solar demand has increased in the United States due to federal and state incentives, overall worldwide demand has decreased. The decrease in demand is in large effect from the decreasing solar subsidies in European countries, making the installation of solar more cost-prohibitive with a longer payback period. According to Emerging Energy Research, a consulting firm, solar photovoltaic installations in Europe are forecasted to fall by nearly 26 percent compared to last year.

The decreasing cost and availability of polysilicon (the key component to most types of manufactured solar) has also contributed to the decrease in solar panel costs. More overseas companies, especially in China have become involved in the direct manufacturing of polysilicon which has decreased the overall cost of manufacturing the panel. Consumers can also benefit from the technological advances in the solar industry that have lead to increased efficiency in the solar modules manufactured today. This means fewer panels with greater energy output.

In addition to the decreasing cost of panels, consumers can also take advantage of available federal and state solar rebates, credits, and grants to further decrease the net cost of their solar system. To better understand what solar incentives are available in your state, visit the Database of State Incentives for Renewables and Efficiency at: www.dsireusa.org.

Attention Business Owners - 30% Solar Grant Now Available

The Department of the Treasury has recently made available the instructions to apply for the Renewable Energy Grant. This grant is part of the Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. It authorizes the US Department of the Treasury to make payments in the form of a cash grant to commercial, agricultural, and industrial properties that install a qualified renewable energy system such as a solar photovoltaic system.

Where previously the 30% Investment Tax Credit (ITC) allowed solar investors to reduce their tax liability by the amount of the tax credit, Section 1603 now allows investors the option to access a cash grant instead. This is advantageous to those who are looking to invest in solar but do not have the tax liability to take advantage of the 30% tax credit. Although the tax credit can be carried forward into the subsequent tax year, the full benefit of the 30% tax credit cannot be realized until taxes are filed. The grant provides a great alternative to the ITC. The solar grant allows investors to receive a cash grant within 60 days or less of the grant application or the date the solar system is placed in service, whichever is later.

If you are interested in taking advantage of the 30% grant, below is a list of eligibility and provisions for Section 1603:

o Only tax-paying entities are eligible for this grant.
o Applicable Sectors: Commercial, Industrial, Agricultural
o Grants are available to “eligible property* placed in service in 2009 or 2010
o Eligible solar-energy property includes equipment that uses solar energy to generate electricity (photovoltaics), to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Passive solar systems and solar pool-heating systems are not eligible. Hybrid solar-lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible.
o Grant applications must be submitted by October 1, 2011
o The Treasury will make Section 1603 payments to qualified applicants equal to 30% of the basis of the solar photovoltaic property - this includes solar equipment, installation, and freight.

Contact us to learn more about this grant and other incentives for your solar installation at info@djhconstruction.com.