Clean Energy Tax Stimulus Package

A quick post with some updated information about tax incentives for renewable evergy – we started the conversation here.

A few days ago the Clean Energy Tax Stimulus Package was introduced in the Senate by John Ensign (R-NV) and Maria Cantwell (D-WA). This bill extends the tax credits for installing a solar energy system in your home or business. Right now homeowners receive a $2,000 tax credit to offset the upfront cost of a solar energy installation, but this tax credit is set to expire at the end of the year.

If you haven’t been in the 3rd grade recently you may want to take a look at this video which explains technically the process needed for this tax credit to move forward.

Solar Energy Overview Pt. 2

This article is a follow up to my previous post which outlined the basics of PV solar power. I’m going to talk about some tax incentives and how they effect the adoption of solar power. I am not an expert in this area so this is really a collection of research from trusted sources along with a little commentary.

Solar energy for the home or office is a long term investment with steady returns. Generally solar energy contributing to a home’s electric consumption returns between 4-12% annually with very little risk. As energy prices increase over time this percentage return also increases. The solar power which has already been paid for is now replacing electrical power that is more expensive.

As with many long-term investments the cost of solar energy has a large upfront cost with savings/returns being earned in future years. This upfront cost is one of the biggest barriers to widespread adoption of solar energy. As the initial investment decreases more people and companies are turning to solar to power their home or office.

Fortunately, the Federal Government (and many state governments) recognize the value of solar power and are willing to help homeowners install solar panels. Currently the Federal Government offers a tax credit of $2,000 to offset the cost of solar energy installations. This tax incentive is a major catalyst pushing the adoption of this clean sustainable energy.

Unfortunately it is not all good news. The renewable energy tax credits known as ITC and PTC are expiring at the end of the year. Without these tax credits solar energy installations (and many renewable energy projects) will slow. The House of representatives has passed a bill, The Clean Energy Tax Stimulus Act of 2008 (HR 5351) to extend these incentives and the bill is being discussed in the Senate. As can be expected, the problem is money.

The move has been applauded by solar and wind energy lobbyists and could be good news for solar startups and wind giants. Though, the bill conspicuously doesn’t say how these extensions will be paid for. Previous iterations of the bill called for cuts in gas and oil subsidies to fund the tax credits, but that move sank the bill in the Senate and garnered a threatened veto from the White House.

Craig Rubens, earth2tech.com

So far the Senate has discussed the new bill, but I haven’t seen information as to an upcoming vote.

Solar Energy Overview Pt. 1

In the past few weeks I have learned a good deal about how solar energy works and I wanted to share some of the basic information. I am not an expert, but this is a conversation that I’d like to start and an area that I am very interested in. This post is part of a series that will highlight some current issues regarding solar energy.

There are several forms of solar energy collection. I will discuss Photovoltaic (PV) solar energy which is probably what first comes to mind when you hear the term solar power. Photovoltaic energy collection consists of solar panels located in direct sunlight that convert sunlight directly to electricity. You can find PV panels on the roof of houses and other places like parking meters.

In most cases PV panels help to power homes and businesses that are connected to electricity utilities. Solar power contributes to the energy that the home or business uses. If the power required exceeds the amount being produced, the system simply draws power from the grid. Likewise if the solar system produces excess electricity, that electricity goes into the grid and the owner is credited by the utility company. This is called Net Metering and in many states it is mandatory that the electric company allow this.

There is a wealth of information about solar energy on the internet, here are a few great links.

• Borrego Solar
• Wikipedia
• State of Solar Energy (with a focus on solar thermal energy)

Please check back. The next post will discuss some current political issues of interest. Please leave a comment if you feel there is anything important to add to the discussion or anything important left out.