You have probably also been hearing about the "solar revolution" for the last 20 years -- the idea that one day we will all use free electricity from the sun. This is a seductive promise: On a bright, sunny day, the sun shines approximately 1,000 watts of energy per square meter of the planet's surface, and if we could collect all of that energy we could easily power our homes and offices for free.
Solar panels have no moving parts. You just sit them out in the sun, hook up the wires, and collect power, without adding fuel or replacing worn-out parts. It's amazing that nobody knows for sure how long a solar panel will last. That's because many of the very first photovoltaic panels are still producing power today. |
US Department of Energy, The Energy Policy Act of 2005
The Energy Policy Act of 2005 (EPACT), signed by President Bush on August 8, 2005, offers consumers and businesses federal tax credits beginning in January 2006 for purchasing fuel-efficient hybrid-electric vehicles and energy-efficient appliances and products. Most of these tax credits remain in effect through 2008.Additionally, the new law makes a credit available to those who add
qualified solar panels, solar water heating equipment, or a fuel cell power
plant to their homes in the United States. In general, a qualified fuel cell
power plant converts a fuel into electricity using electrochemical means,
has an electricity–only generation efficiency of more than 30 percent and
generates at least 0.5 kilowatts of electricity.
Taxpayers are allowed one credit equal to 30 percent of the qualified
investment in a solar panel up to a maximum credit of $2,000, and another
equivalent credit for investing in a solar water heating system. No part of either system can be used to heat a pool or hot tub.
Click here for helpful IRS form 5695 |
