Solar power has always been a good alternative energy option, but the cost of manufacturing and installation of the panels and electric systems have been so high that it's never been an option for the typical homeowner. However, SolarCity, an up and coming California company that specializes in solar power, is starting to bring solar energy options to homes. The company leases the solar panel systems, making them a more viable option for homeowners and those who wouldn't otherwise have the option.
Although it could bring this alternative energy to more and more residences, the offer would only be valid to those who live in states that have tax credit options and other incentives for alternative and clean energy. The company, which began four years ago, has already been leasing their solar panel systems and in many cases their customers are paying less for their current electric bills and the cost of the lease than they used to pay for their electric bills alone from standard electric companies.
SolarCity is moving to more and more states, but it's common for the offer to be valid in one state but invalid in neighboring states. The company has explained that unless the state offers tax credits and incentives, it's not a financially feasible to lease their products there because homeowners won't be saving any money. Currently, SolarCity leases to residents in Arizona, California, Colorado, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Texas, and Washington DC.
Many of the states offer different kinds of rebates, tax credits, and other incentives to homeowners who utilize green energy in their homes. For example, Massachusetts, which was recently added to SolarCity's list, offers a 15 percent income tax credit (up to $1,000) and has also implemented other actions to advance green energy in the state. Massachusetts also requires a certain percentage of their electricity to come from renewable and clean sources.
As more and more states plan to offer credits for renewable energy, SolarCity is hoping to spread its services further and get more Americans on board with the green movement. As solar power and other alternative energy options become more affordable, it's almost certain more Americans will switch over to save money and the environment.
On top of the individual state credits, homeowners can apply for a 30 percent tax credit from the federal government. The federal Energy Policy Act of 2005 allows residents to obtain this credit up to $2,000 for the purchase and installation of residential solar electric systems, solar water heating systems, and fuel cells. Although certain requirements must be met, including the efficiency of the system, it is still a great option for those who want to install a solar energy system in their home.
