PV Gap

Elaine Said:

What is the definition of "provide electricity for the residence"?

We Answered:

There's nothing "vague" about "provides electricity to the residence." Your original question asked if solar accent lights were eligible for the credit. They clearly are not since the photo cells on those lights do not provide electric power to the residence.

Whether your home is connected to the electric grid is irrelevant to the qualification for the credit. The intent is to partially reimburse the cost of alternative energy sources such as wind, solar, and fuel cell. Demonstration homes have been built that are totally isolated from the electric grid yet have all of the "modern conveniences" of a property connected to the grid. Needless to say, the cost of such technology today is well beyond the reach of the average individual, and the maximum credit available is a pittance when compared to the cost.

More typical installations partially offset the dependence upon the electric grid for power to the residence. Those systems would be the primary ones that the credit would be based upon. Typically they include a bank of solar panels, storage batteries, and inverters for more typical use. That said, wiring a home for 12 volts and using solar panels and storage batteries would qualify as well. But stand-alone solar accent lighting units would NOT qualify for the credit since they clearly do not "provide power to the residence."

If you can find a flashlight with a manufacturer's certification that it meets ARRA Section 1122 for the solar residential energy credit (§ 25D of the Internal Revenue Code), buy it. I'm betting that it will be a LONG search for that flashlight though!

Adrian Said:

Can you give me information on solar energy?

We Answered:

When I was gainfully employed, prior to experiencing the bliss of retirement, I worked for a hardware store that marketed a solar energy system for single family residences.

The cost profile (this stuff is expensive) suggested that, if you planned to live in your home for 19 years post-installation, you would amortize the cost.

There were federal and California state tax credits available at the time, as well as a rebate from Pacific Gas and Electric (primary utility provider in No. Calif.) which produced a net cost near $20K.

You need to determine if your local power company is obligated to buy back surplus power from your solar system first. If they are not legally required to do so, that will make amortization more difficult.

I came accross a new, proven and tested home made wind power system and solar power system which eliminates our electricity bills. It was written by a Renewable energy enthusiasts Michael Harvey the diy called Earth4energy. You can get your copy to save energy and help environment while eliminating your power bills. Get it from here:

http://how-to-build-cheap-solar-energy.blogspot.com/