Great news! The recent US$700 billion financial rescue package is already bringing massive benefits to the solar power for homes industry.

An 8 year extension of the solar tax credit has been bundled into the package which will create thousands of new solar power for homes jobs while slashing the cost of solar panels for home owners and businesses.

To explain, an investment tax credit reduces the amount that individuals or businesses owe in taxes when they invest in certain industries, of which the solar power for homes industry is one.

Consumers will see that lifting the $2,000 residential cap in favor of a 30 percent tax credit will cut their payback time from nine years to less than seven on a typical residential solar power for homes system.
A typical five-kilowatt solar power for homes system is currently priced at roughly $40,000. Taking into account the California rebate of $7,600 and the $2,000 federal tax credit, that’s an out-of-pocket cost of $30,400 or thereabouts.

Now that the $2,000 cap has been removed, the credit increases to $9,700 and the overall net cost is reduced to $22,700. So consumers will get back about half of their total solar power for homes outlay in immediate funding. The rest will be returned in terms of energy savings over the next 7 years.

This extension had been like a political beach ball for the US Congress, having voted it down 15 times over the last few months because they could see no way to pay for it.  But now, the removal of a tax credit cap will lower the cost of solar panels by thousands of dollars, which will bring solar power for homes within the range of many more people.

This will create thousands of new jobs within the industries relating to solar power for homes. US states like California were already showing massive increases in their usage of solar power for homes, even before this news. Recent figures show that 111 megawatts of solar power facilities were installed in the golden state in the first nine months of 2008 compared with 81 megawatts added in the whole of 2007. Put into context, one megawatt could power up to 750 homes.

With the stock market all over the place and gas and electricity prices soaring, solar power for homes must now be seen as the most sensible investment to secure your future energy needs at a rate that will remain affordable beyond the foreseeable future.

Go solar power for homes!
 
From Sam Deane,
your solar power for homes guide,
at www dot go solar power for homes dot com.

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Referenced Info via Mercury News.
The Trackback, /solar-power-for-homes/great-news-tax-credit-gives-solar-power-for-homes-a-massive-boost, by Sam Deane, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License

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