Watch Out!

Many so-called rebates are really credits against something (like a tax liability) that you need to have to take advantage.

Where you live also affects whether you get a rebate from your utility company.  If it is not a large national supplier of energy, then it may not give rebates.  Companies to be aware of include local cooperatives, or alternative providers that simply resell one of the bigger guys.

Solar Rebates

Here are some Rebates / Credits you can expect to get:

1. Utility Rebate - a true rebate in the form of cash, generally  some number of pennies per watt.  Many utilities pay one rate for under a 10 kw system, and a different for anything over 10 kw.
2. Federal Rebate/Credit - For 2009/2010 (so far) the fed.s kick you back 30% of your out of pocket expenses.  If you are a business, it is in the form of a rebate (cash in your hand), if you are a consumer/individual then it come inthe form of a tax credit which simply reduced tax liability.
3. Government Grants - The federal government also has a matching grant program, where they will match up to $250,000 of funds for a project.

These are the main rebate/credit mechanisms currently available to a person or business today.

Example Solar System Cost of Ownership

Let’s take a typical solar system of about 6.5 kilowatts, the average size to run a small household.  This install was done within a utility company district that pay 3.5 cents per watt rebate.

Average Retail Cost: $58,500.00

Utility Rebate: $22,750.00

Fed Tax Credit: 10,725.00

Final System Cost: $ 25,025.00

Payback Period: 7 years

Secret Solar Rebate

One of the best parts about using solar is that it is a renewable resource, and as such, you will be generating electricity with your solar system for life.