Q. We’ve been thinking about getting a solar water heater for our home, and I remember hearing a while ago about tax credits that helped lower the price, but someone told me they thought they ended last year. Do you know anything about this?
A. The federal tax credits that had been in place the last few years for solar energy systems and a number of energy-efficiency improvements had been set to expire at the end of 2008, but the Emergency Economic Stabilization Act (better known as the economic bail-out bill) signed by former President Bush in October extended the solar and fuel cells credits through 2016. A number of other credits set to end were also extended, and new credits were set up for small wind energy systems and plug-in hybrid vehicles.
As a result, if you’re considering getting a solar water heating system for your home, now’s the best time to get serious about it since the federal government will basically pay for 30 percent of the system cost, up to a maximum of $2,000.
In addition, many states have their own tax credits for their residents, and there are also a variety of other incentives and rebates from utility companies and some government agencies. You can get complete details on all of the federal, state and local financial incentives at dsireusa.org.
I frequently talk to consumer groups about solar water heaters, and I’ve seen a great increase in interest in recent years as water costs have gone up, areas around the country have faced power shortages, and people have become more environmentally aware. I think the bottom line is simple: solar water heating is a proven, reliable technology that can be used in just about every part of the United States, and systems can be sized to meet all or a major part of your family’s water heating needs (back-up systems heat the water during periods of cloudy weather or excessive water use).
In spite of the many solar water heating systems in use today, there’s still one line I keep hearing all of the time — people ask me when we’re finally going to be able to use the sun for simple needs like heating water in our homes. They’re usually surprised when I answer that solar water heating has been an industry in this country since the late 1800s, and installer training and manufacturing improvements mean that today’s systems typically work quietly, efficiently and reliably in all kinds of climates and all kinds of weather. With tax credits and rebates currently paying somewhere between a third and half or even more of the average system cost, you’ll get your out-of- pocket cost paid back in several years of energy savings.