How Do I Offset Solar Panel Cost?

If you listened to Barack Obama speak during the recent presidential campaign, you likely heard about America's green future. European pioneers like Germany have blazed the trail that most of the United States is set to embark on, and a large part of our new, green future is solar energy. According to recent research, however, the initial cost of installing solar panels in a new home can be as high as $20,000. Although there are many ways to help mitigate solar panel cost, it is often a gradual process that does little to lessen the sting that comes with that first bill.

Tax Credits For Going Green

There was a federal act passed in 2005 that provides significant help to homeowners and business owners that are looking to go green. The first part of this act provides a personal tax credit for not only the solar panels you install, but also for other parts of your solar system, including the solar hot water heater and more. The government will foot up to $2,000 of the total cost of your new hardware, but the best news may be yet to come. The Obama administration has talked of offering a significantly higher tax credit but the details have yet to be fully worked out, so you may want to wait a few months before making that big purchase.

A quick note, to receive the full tax credit under the 2005 plan, your solar panels and appliances must be installed by an industry professional to certify that everything is done correctly. Of course, this adds to the total cost and reduces your overall savings, but when it comes to saving money over the long run, it helps to know that your new system will perform properly.

Sell Energy To Your Power Company

Perhaps the most popular way to offset solar panel cost is by selling back part of the energy you don't use to the power company. It is an idea that excites many people; getting a check from your power company every month instead of a bill. However, not every jurisdiction will allow for you to sell back your energy, so make sure you check with your state, county and power company before you make your initial investment. The federal government has ruled that income generated from your power generation is tax free, which can go a long way in helping offset your initial investment.

Energy Efficient Mortgages Program

Finally, the government can help you cover the cost of your energy upgrade through their Energy Efficient Mortgages program. Since most people don't have an extra $20,000 in their bank accounts that they can simply spend on solar panels, most folks refinance their mortgage. You can also look at getting an Energy Star mortgage that is also specifically for green energy upgrades. As you can see, there are many different government and private programs out there ready to help you offset solar panel cost, now it is up to you to take that next step towards energy independence.

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One Response to “How Do I Offset Solar Panel Cost?”

  1. Christy Taylor Says:

    want cheap free if possible way to offset energy bills

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