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The number of households making the switch to solar electric systems is growing all the time. This energy efficient solution provides a wide range of benefits, including access to an energy efficient home incentive.
Residential Energy Efficiency Tax Incentive
The Residential Renewable Energy Tax Incentive has been extended and is available to households until 2016. The installation of a solar electric system after 2008 qualifies for an energy efficient home incentive.
According to the conditions of the act, a taxpayer may claim up to 30 percent of the qualified expenditures for the installation of the solar electric system. The property must be located within the US and owned by an American taxpayer.
Some kinds of expenditure that could be covered by the energy efficient home incentive include labor, assembly of the system, the cost of piping and wiring and any other kind of on-site preparation cost.
Any excess amount may potentially be carried forward to the coming tax year. The procedure can be continued until 2016. There is still no clarity whether any unused tax incentive will be carried forward from that year on.
The Added Benefits of Home Solar Systems
Apart from enabling qualification for the energy efficient home tax incentive, solar electric systems for residential use come with a range of additional benefits. The most obvious one is the cost saving produced through the installation of a renewable energy source system.
Solar energy is considered a form of modular technology. This means you can install as few or as many solar panels as you choose. The more panels you install, the bigger electricity bill savings you will enjoy.
The selection of this home improvement guarantees independence from the traditional electricity production that relies on fossil fuels. In addition, the energy production is a much cleaner process that is an excellent option for the environment-conscious individuals.
Some of the benefits of such installations are much less direct than the access to an energy efficient home incentive. One of these involves the overall cost of electricity. Through reliance on alternative energy production, the demand for power will be met by the supply. As a result, the overall cost of energy will go down on the US market. The resilience of the electrical grid will also be increased because the methods of energy production become truly diversified.
The Cost of Going Solar
Though you will qualify for an energy efficient home tax incentive, you will still need to calculate the cost of installation and decide whether this kind of home improvement is the right one for you.
The cost of solar panels varies across the US but this kind of technology has become much more affordable than it used to be several years ago. The cost of residential installations varies between 11,000 and 35,000 dollars, depending on the energy output.
Labor cost usually accounts to 15 percent of the overall project price and the mounting of solar panels will cost anywhere between 2,000 and 5,000 dollars depending on the complexity of the task. Many companies provide solar lease options, which simplifies the process of getting started. Thinking about all of the energy you will be saving through the years can also help you get motivated.
Apart from giving you access to an energy efficient home incentive, investment in renewable energy sources guarantees your ability to reduce electricity expenditure and enjoy a greener lifestyle. All of these benefits make the option worth considering.
Steve Nanos
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