Rebates, Incentives & Tax Credits

On Feb. 17, 2009, President Obama toured and signed the American Recovery and Reinvestment Act. This unprecedented economic stimulus package has many provisions designed to boost the green economy. It supports renewable energy technologies with billions in incentives, including an estimated $5.5 billion for government procurement of energy efficiency and renewable energy projects. In addition to establishing a temporary cash grant program as an optional substitute to the ITC, the ARRA lifted the $2,000 cap on residential solar water heating systems. This broadens market opportunities for the solar thermal industry. Other provisions include a 30-percent tax credit for renewable energy manufacturing facilities and a loan guarantee program for renewable energy projects.

Residential Solar Investment Tax Credit:
The federal bill extends the 30% ITC for residential solar property for eight years through December 31, 2016. It also removes the cap on qualified solar electric property expenditures (previously $2,000), effective for property placed in service after December 31, 2008. The bill allows individual taxpayers to use the credit to offset AMT liability, and to carry unused credits forward to the next succeeding taxable year.

State Incentives and Additional Rebates:
In the current economy, there is a priority and mandate for state and local municipality support for the deployment of clean energy solutions, with available incentives to supplement the Federal rebate program. Uptown Austin has developed a simple way to help consumers understand the additional incentives that are available in individual state and local areas.

Feed-in Tariffs and Utility Sponsored Incentives:
In special market areas, additional incentives and rebates may be available from the utility provider. A "feed in tariff" is an incentive structure designed to encourage the adoption of renewable energy sources such as solar, in which your local utility may be obligated to purchase any excess power at a premium price. In addition, your utility company will offer subsidies to offset cost of system ownership.