Energy Tax Credits are Approved
Wednesday, October 29th, 2008 | Filed under Solar Energy$18 Billion in Energy Tax Credits
October 3, 2008. President Bush signed into law the Emergency Economic Stabilization Act of 2008 which extended existing tax credits to homeowners and businesses that invest in renewable energy and energy efficient home improvements. Various forms of improvements include solar panels, wind turbines, windows, doors, roofs and insulation. These credits, however, cannot be applied to improvements made in 2008.
Starting in 2009, there is a new tax credit for hybrid electric vehicles. The credit would start at $2,500 and be capped at $7,500. The determining factor of how the credit will be assessed is based on the capacity of the battery system.
The tax credit for solar is for 30% of the cost of the system, up to $2,000. Beginning in 2009, this cap will be removed for photovoltaic systems.
Xcel cuts rates for renewable energy credits
Tuesday, October 28th, 2008 | Filed under Solar EnergyRate paid is cut by almost half
Earlier this year, Xcel Energy was paying $2.50 per watt for renewable energy credits. Last week they announced that they were dropping that rate to $1.50 per watt. This would amount to a 40% cut.
The justification that Xcel used for the cuts was the price of solar systems has been falling consistently and the bailout package that was approved by Congress included a solar tax credit. These facters would give homeowners more cash to install these systems.
Starting in January 2009, homeowners will be eligible to receive a tax credit up to 30% of their total project costs. This is better than the previous ceiling of $2000.00 tax credit.