STATE & FEDERAL GOVERNMENTS LEND A
HAND IN RENEWABLE ENERGY SOURCES
Luckily for us, state and federal governments are giving consumers a helping hand in making the switch to renewable energy sources. These incentives are working to drive the price of solar down and at the same time they are reducing the net cost of systems purchased today.
You can find a convenient list of all state and federal incentives offered you at www.dsireusa.org.com.
California Solar Initiative (CSI)
The California Solar Initiative offers a cash rebate based on performance of the system itself. The rebate amount is calculated by multiplying a specified monetary amount by a design factor determined from the equipment rating, angle, azimuth, and geographic location of the monetary amount per Watt is reduced as certain “steps” or predetermined number of solar Megawatts have been installed. The rebate is intended to drive down the overall cost of solar. You can see where your current step is by going to the CSI Trigger Tracker.
Residential Renewable Energy Tax Credit
The Residential Renewable Energy Tax Credit is a personal tax credit that individuals may take when purchasing solar water, PV, wind, fuel cells, etc. The credit is determined by taking 30% of the after rebate cost of the entire system. This credit is NOT a write-off! It is a dollar for dollar credit taken off the bottom line of your federal income tax.