Solar Panel Tax Credits

Many people may not agree to the concept or severity of global warming and the threats that it poses to humanity and nature today, but no one can disagree to the fact that the best energy is one that is derived from a renewable source and does not contribute to polluting the earth. Examples of such forms of energy include solar energy and wind energy. It is a fact that the energy that we receive from the sun is boundless and does not have limits, it also happens to be the purest form of power and energy that we receive on earth. It is possible to tap this energy and power with the help of basic, simple yet sophisticated processes and methods. Today we must stand for energy independence as a way of life, not merely a campaign slogan.

Solar panels are less expensive and more powerful now

Many people tend to think that the purchase and installation of solar panels will cost them a hand and a foot, but great news is that these prices are steadily dropping and more and more consumers are exploring the possibilities and benefits of using solar energy to produce and generate electricity for their household purposes. Another reason for the significant drop in the prices of photovoltaic panels and cells is the fact that the rates of silicon (which happens to be the most important component in the construction and manufacture of a solar panel) have decreased since the last year. Innovations and sophistication in the manufacture of solar panels have also paved way for more affordable panels. Today, a new technology called thin-film panels is being used for the construction of the system. This thin-film is far more affordable and economical compared to the conventional silicon panels which were preciously being used in the process. These are some of the reasons as to why the prices of solar or photovoltaic panels have dropped significantly in the last couple of years.

Energy tax credits also help to reduce prices

An excellent incentive by the government is the announcement of a 30 percent tax credit for all those people who are willing to purchase and install any forms of devices or panels that are capable of converting natural energy to usable power or electricity. These include photovoltaic panels, wind powered turbines and various other products and devices that specialize in the conversion of alternative energy.

What kind of a tax credit can you get by installing solar panels:

The tax benefit that is offered by the IRS or the state or local government is a tax credit. This is eligible for people who spend money on installing solar panels and similar projects on their home or business.

This benefit directly reduces the amount of income taxes that you need to pay or an increase in the tax refund that you are entitled to.