Saving the Earth might begin at home, but those changes start with legislation that opens the way. The Energy Policy Act of 2005 affected the solar industry by offering tax credits to make solar energy more affordable. As businesses and consumers alike enjoyed wide tax benefits to recoup installation costs, the field of solar energy opened up to wider implementation. These savings suddenly made it very cost effective for many people to use this technology, opening up the way for innovative development in reaction to the increased demand. Prices for the technology dropped as popularity in solar energy surged, making the technology more affordable now than ever before.
Revolutionizing the World, One Tax Credit at a Time
As the Act expanded the former tax credit from 10% to 30%, the rate to recoup expenses increased. It's obvious that solar energy is more affordable, yet the installation of the panels costs money. Once installed, the energy is free, but you need to be able to recoup those first start-up costs. The energy your panels absorb can be bought back by the electric company. Even though your home may not run off solar energy completely, the panels will greatly reduce your electric bill to next to nothing. You don't know satisfaction until you've watched your electric meter tick backwards on a sunny afternoon. You save money as you do your part to reduce global warming and the burning of fossil fuels.
The tax incentive counts towards all costs, including engineering, design, equipment and installation. As the government hands you a big fat check at the end of the year, your costs can be recouped that much faster. Solar panels will pay for themselves. It just depends on how long. The Energy Act of 2005 greatly reduces the time it will take to regain your costs by as much as 1/3.
First Residential Tax Credit in 20 years
The Energy Policy Act of 2005 is the first residential tax credit in over 20 years, greatly encouraging many homeowners to invest in residential solar in San Diego. The act allows individuals to write up to 30% of the installation cost off their taxes, up to $2,000 per home.
Consumers who have been riding the fence trying to decide now have the economic incentive to make it more feasible, opening up more homes to green technology. The best part is that consumers will continue to save long after costs have been recouped.