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Buying a solar system to power your home can be an expensive, daunting investment?even though it'll eventually pay for itself in the savings it'll slash from your electricity bill. But the systems are still costly. That's the unfortunate truth at the moment, though solar panels are getting cheaper as we speak.
Good news is, you can get a pretty hefty tax break if you do take the plunge and buy a solar system that provides your home with electricity?to the tune of 30% of your clean energy investment. According to the IRS, you're eligible for a tax credit equal to 30% of your investment?up to $2,000?in a solar power system. That's a pretty generous rebate, and should certainly serve to encourage more home solar buyers.
And it's almost the same situation for solar powered water heaters, which are continuing to grow in popularity?you'll get a tax credit for 30% off your investment when you purchase one. However, the deal's a little sweeter here: thanks to [ul="http://www.treehugger.com/galleries/2009/02/stimulus-tax-credit-guide-obama.php?page=1"]the American Recovery and Reinvestment Act[/url] (the stimulus bill), no such cap exists on the rebate. So if you buy a $10,000 solar water heater, you can get the full $3,000 rebate in the form of a tax credit.
Though you might initially balk at the price of some solar systems?a single 170 watt solar panel from BP runs for around $950?bear in mind the amount you'll be shaving off your electric bill each month. Access to good service is easier to find (some Home Depots) even offer solar products and installation). And, of course, take into account that you'll be running (at least part of) your home on clean power, as opposed to polluting coal power. And with that enticing 30% off offer standing strong courtesy of Uncle Sam, it might be a good time to think about going solar.
