As America becomes more environmentally conscience, popularity in solar and wind home energy systems will continue to rise. To help spark interest in these systems, the federal and many state governments are offering great tax incentives for purchasing a energy system for your home.
One of the better known tax incentives is the energy star tax credit. This credit is offered to homeowners who are interested in installing an energy star wind or solar panel system in their home. Homeowners can claim a tax credit that is valued up to 30% of the total cost of the system. Unlike a tax deduction, a tax credit is a direct dollar for dollar reduction of ones tax liability.
When it comes to selecting an energy system, one should consider if the location of their home supports the type of system that they are trying to install. Is your home in a shaded area? Perhaps a solar energy system is not the best choice. Also, when selecting a system, size does matter. Be sure to examine your prior electric bills to determine your power usage. Don’t purchase a system that doesn’t meet your desired energy output. Although you may be able to install a system that meets 100% of your energy needs, many choose a system that supplements their power usage because larger systems cost more.
Author: Allen Dukes
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