If you are one of those people who are waiting for solar energy incentives and rebates to get better, you may have already missed it. Since the beginning of 2009 many incentive providers have been begun reducing rebate amounts for residential systems as well as commercial systems. The ARRA or Stimulus bill provided an increase in tax credit dollars available to home owners from a capped amount of $2,000 to 30% uncapped on both Solar (PV) Electricity as well as Solar Domestic Water Heaters. This incentive as well as the recent drop in solar panel prices, around 30%-50% for some modules, has made solar more affordable. Rebate providers such as Xcel Energy in Colorado and LIPA in New York have begun cutting rebate amounts as much as 50% starting in January 2010.
In Florida, the rebate program is based on a 4 year statute which is set to expire in June 2010 offers one of the highest rebate amounts in the country $4/Watt DC capped at $20,000 for residential and $100,000 for commercial systems. Rebate payout availability is based on funds being available for the program has been so successful it has run out of money each fiscal year since it was created. The state has had to request funding dollars from the state budget and the ARRA Stimulus funds just to pay off the back log. The program is still currently accepting applications however, home owners only have until the end of June 2010 to have their system installed to be eligible for the $4.00 /Watt DC incentive.
Just like these other states, it is likely Florida will make provisions to reduce the total amount paid per installed Watt. Places like California have a declining rebate structure based on total watts installed in the state already built into their program. Additionally, many states including leaders like California and New Jersey base their rebate amount on AC production. This means your installer has to design the system the best, provide the best equipment and use industry standard tools to prove the amount of energy produced is accurate in order to get the highest rebate amount. This ensures the State’s money and that of the rate payers funding the program is not wasted on poorly installed systems.
Floridians may want to act now to be eligible for the higher rebate amount or look forward to their legislature to slash rebate amounts as well as impose higher installation standards in order to qualify for their rebates. Combine these facts with the current rate hearings for local utility rate increases, the future of solar energy is looking pretty bright.
