With the green energy movement continuing to gain ground, and technologies advancing every day, the photovoltaic industry is growing rapidly. Not only does this mean that equipment is continually dropping in cost, but also that government programs are beginning to advance the field through tax breaks and incentive programs. Additionally, solar power can be applied as an investment, as it can be sold back through the grid to the power company, commonly called net metering, or simply used to lock in low, off-peak rates.
In 2005, the Energy Policy Act began offering tax incentives for the use of renewable energy. These benefits were extended in 2008 with the Emergency Economic Stabilization Act, and again in 2009 with the American Recovery and Reinvestment Act. The benefits offered are, for the most part, considered “tax credits,” meaning they carry specific dollar value. For example, the credit may cover the cost of equipment up to a certain amount, or simply a percentage of that cost.
The most obvious financial benefit of a photovoltaic system, whether in the home or workplace, is the potential for savings on commercial power. Any amount of installed solar paneling will reduce these costs. The highest savings take place when solar power is generated for use during peak hours, when energy costs are at their highest. Similarly, a larger system, being capable of fully powering a building, can be tied to the grid, allowing energy to, in effect, be sold to the power companies.
The Residential Renewable Energy Tax Credit is offered to consumers in the United States when installing certain renewable energy systems, including solar power. Being available until December 31, 2016, the credit covers 30% of total equipment costs, up to a value of $1500.
A photovoltaic system can be used for more than just powering a building. One exciting possibility is in the field of hybrid and electric vehicles. These vehicles, being powered to some degree by electricity, need to be plugged in and recharged, offsetting the savings gained by lowered gasoline consumption. A small solar kit, with sufficient power output, can be set up as a charging station, and can completely eliminate the vehicle’s electricity costs. In fact, some retailers have begun to offer such stations as kits, making the process all the more easy.
Photovoltaics is among the most rapidly growing fields in the energy industry. New products are being developed every day, with existing products dropping in price with no sign of slowing. Aside from those potential savings, government programs are sure to continue offering incentives.