Tax Credits and Incentives for Home Wind Energy Projects

One of the best resources for homeowners interested in financial benefits to help defray the expense of their residential wind power system is the Database of State Incentives for Renewables and Efficiency. It provides information on state, local, utility company, and federal incentives for the promotion of renewable energy and energy efficiency. The project was started in 1995 and is funded by the U.S. Department of Energy.

Also, consult the legislative section of the American Wind Energy Association which not only explains existing legislation, but tracks measures that are in development. In particular, there is a lengthy explanation of the American Recovery and Reinvestment Act of 2009 signed into law by President Obama on February 17, 2009.

As the law currently reads:

- There is a federal investment tax credit (ITC) created by the Emergency Economic Stabilization Act of 2008.

- The ITC is available to consumers buying small wind turbines for residential, farm, or business use.

- Qualifying units must have a capacity of 100 kW or less.

- The ITC is equal to 30% of the total installed cost of the system.

- The ITC can be used for equipment installed from October 3, 2008 through December 31, 2016.

- As a result of the American Recovery and Reinvestment Act of 2009, the value of the credit has no cap.

The best strategy homeowners can follow to determine the real cost of their proposed wind system is to:

- Have a wind quality assessment of their site.

- Get three or more quotes for equipment and installation.

- Get an estimate of annual energy production from the proposed wind system weighed against current electrical use and costs.

- Investigate interconnection and net metering with the local power utility.

- Investigate all zoning and licensing fees.

- Investigate incentives from the power utility itself, from the state in which the turbine will reside, and from the federal government.

At minimum, you can expect, with a qualifying system, to defray your equipment and installation costs by 30%.

However, in contemplating the purchase of a residential wind turbine with opening costs of as much as $22,000, you need to consider the total costs minus electrical savings and all applicable incentives and tax credits. Regardless, most wind systems will not pay for themselves in under fifteen years. Continue reading to learn more about the return on your wind investment over the long term.

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One Response to “Tax Credits and Incentives for Home Wind Energy Projects”

  1. david Says:

    where can i find complete wind plans and parts list.companies to purchase part and possible used parts.cheapest ways for diy.

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