Financial Incentives for Early Solar Adopters
Current financial incentives from both Federal and State governments for early adopters of solar power systems are compelling. The amount of the solar incentive varies by state. Pennsylvania offers various solar power incentives, usually in the form of solar rebates and/or renewable energy credits. For example, one of the grant programs currently available in Pennsylvania offers rebates in the area of $2.00 per watt for households up to 10 kW and for businesses up to 200kW.
PA also offers solar power generators the ability to sell Alternative Energy Credits (AECs). An AEC, otherwise known as a Renewable Energy Credit or “Green Tag”, is earned when a qualified solar facility generates 1000 kWh of electricity. AECs are generally purchased by Electronic Distribution Companies and Electric Generation Suppliers in order to meet their minimum percentage of alternative energy production mandated by government.
In addition to state incentives, the Federal Government offers a 30% tax credit for residential installations and a 30% grant for commercial installations. Additionally, businesses and home offices also benefit from 5 year accelerated depreciation. The state incentives combined with the federal incentives may result in reimbursement of up to 60% of your solar power system installation cost!!!