A survey of over 748 online visitors that was completed by SolarHome.org in March of 2007 stated that fully 84% of residential consumers strongly considered Federal ITC incentives when purchasing a residential solar system and 47% may not have purchased or considered a residential solar system if these credits did not exist. These tax incentives are set to expire in less than nine months. President Bush, in his 2006 State of the Union, outlined the new Solar America Initiative, an initiative that may not be achievable if these tax credits are no longer available to persons considering an investment in home solar power systems.
Salt Lake City, UT (PRWeb) March 29, 2007 -- A survey of over 748 online visitors that was completed by SolarHome.org in March of 2007 stated that fully 84% of residential consumers strongly considered Federal ITC incentives when purchasing a residential solar system and 47% may not have purchased or considered a residential solar system if these credits did not exist. These tax incentives are set to expire in less than nine months. President Bush, in his 2006 State of the Union, outlined the new Solar America Initiative, an initiative that may not be achievable if these tax credits are no longer available to persons considering an investment in home solar power systems.
In the 2006 State of the Union address, President Bush launched the Solar America Initiative, marking a new push to make solar panels and solar energy cost-competitive with other forms of energy by 2015. The President's words, however reassuring to many Americans, may have been premature. Now less than a year later, The Energy Policy Act of 2005, which has provided residential and commercial solar energy investment tax credits to Americans in every state, is set to expire in less than nine months.
Avid Amiri, President of
Home Solar Panels LLC, stated, "The visitors to our website come from across America and represent a very wide demographic group. Of the people I have spoken to directly very few even knew that these Federal incentives were in jeopardy, most just take it for granted that these rebates exist and will continue to exist. In reality if we are to even come close to achieving the objectives outlined in Bush's Solar America Initiative, H.R. 550 and S. 590 are just first steps in the right direction. Without passage of these bills Americans will be trying to fill an evaporating swimming pool with a teacup." With 84% of residential consumers (as polled in March 2007 by SolarHome.org) strongly considering Federal ITC incentives when purchasing a residential solar system, the outcome of this bill will have a pronounced effect on the future sales of residential and commercial solar PV systems.
Whether or not America achieves the goals of Bush's Solar America Initiative may lie in a bill that was introduced by Congressman McNulty (D-NY) in the House and Senator Smith (R-OR) in the Senate, on January 18, 2007. The Bill H.R. 550 and S. 590 is designed to extend and modify current tax credits on solar projects from 2008 to 2017.
The US Department of Energy stated in 2007 that "the cost of electricity from solar panels has dropped from more than $2.00 per kilowatt-hour in 1976 to $0.18-$0.23 per kilowatt hour today. Yet, to compete with conventional power sources, PV costs still need to fall by another two-thirds….to achieve the commercialization goal of $0.05-$0.10 per kilowatt hour by 2015"
http://www1.eere.energy.gov/office_eere/pdfs/solar_fs.pdf. To achieve a "two-thirds" drop in solar panels component prices will require significant investments in new solar and fuel cell manufacturing plants that require long lead times, up to 6 years. According to many industry observers it will also require significant investments in technology. The problem is that without the existing tax credits America's demand for solar power will decrease and even a temporary drop in demand will delay long-term investments into the development of new PV plants and technologies.
The Bill was designed to not only extend current tax credits but also to promote energy security by reducing America's dependence on foreign oil and stabilizing the existing energy grid by diversifying energy sources. The Bill is projected to save Americans over $32 billion in energy costs, primarily by providing an alternative energy source during peak consumption hours (9 a.m.-6 p.m.). The current grid often resorts to the generation of additional energy during peak hours by burning less efficient fuels such as gas. Sponsors of the Bill also claim that it will create up to 55,000 new jobs in the solar industry and encourage $42 billion of additional investments in solar plants and technologies.
The key components of the H.R. 550 and S. 590 Bill are:
• Extends the ITC for all residential and commercial solar and fuel cell equipment for 8 additional years (with the commercial solar ITC reverting back to 10% in 2017).
• Modifies the residential and commercial tax credit for photovoltaics to $1,500 per half kilowatt.
• Removes the 30% cap for commercial photovoltaic installations and the $2,000 cap on residential photovoltaic installations.
• Provides AMT relief for fuel cells and solar.
• Provides 3-year accelerated depreciation for commercial solar and fuel cell projects.
For more information on
Solar Panels and solar industry issues please visit SolarHome.org, or visit
www.dsireusa.org to see current state and federal rebates.
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