Renewable Energy Incentives

If you live in Arizona, Idaho, Oregon, California, Montana or Washington, you can save big bucks on a solar- or
wind-power system. Here’s how:

Installing a renewable energy system is increasingly affordable thanks to rebates and tax breaks from federal and state governments, as well as local utilities. Depending on where you live, renewable energy subsidies could reduce the cost of a wind- or solar-electric system by more than half the total expense.

In Oregon, for example, a new state energy trust is doling out millions of dollars to utility customers who want to install new solar systems. A tax credit and a 15-year, low-interest loan are available from the state to cover the remaining expenses. In other states, rebates of up to 70 percent of systems’ costs are available.

Here is the first in a three-part series summarizing some of the best subsidy offers for wind, solar water-heating and photovoltaic (PV) systems in 17 states. Part I covers Arizona, Idaho, Oregon, California, Montana and Washington. Part II, in the December/January 2005 issue, covers Texas, Minnesota, Wis consin and Illinois. Part III, in the February/March 2005 issue, covers Florida, Delaware, New Jersey, Rhode Island, Massachusetts, New York and Vermont. Incentives are available in other states, but the programs covered here stand out in the growing crowd.

As oil prices rise and electric grid failures mount, an increasing number of cities and states are setting ambitious targets for boosting renewable energy production. For the most current information for your area, go to www.dsireusa.org, an essential source for subsidy listings and contact information that can help you light up your life with renewable energy. Other good sources of information are your local utility company and state energy office.

ARIZONA

• A variety of incentives drive the state government’s goal for 1.1 percent of Arizona’s energy to come from renewable sources by 2007. Residents can deduct 25 percent, or up to $1,000, of the cost of solar and wind systems from state taxes, and the equipment cost is tax exempt, too.
• Arizona Public Service offers customers a rebate of $4 a watt for grid-tied PV systems of 5 kilowatts (kW) or less. A $700 credit is offered to those who install a solar water-heating system.
• The SunShare program from Tucson Electric Power (TEP) reimburses customers $2,000 per kW for a PV system of up to 10 kW — and you can buy a system directly from the utility. (For program revisions just announced, including one purchase option offering $3,000 kW-DC, go to www.greenwatts.com/pages/sun share.html or www.greenwatts.com/ Docs/BuydownOptions.pdf.)

IDAHO

• Loans of up to $10,000 at 4 percent interest rate for residential renewable energy projects are available from the Idaho Department of Water Resources’ energy division. Borrowers have five years to repay the loans.
• A 100-percent deduction for the cost of solar and wind projects — 40 percent the first year and 20 percent the following three years with a deduction cap of $5,000 a year and an overall limit of $20,000 — is offered to state taxpayers.
• Idaho does not have statewide net metering, but the state’s public utilities — Avista Utilities, Idaho Power Company and Utah Power & Light Company — offer net metering programs. Extensive rules exist, including enrollment caps and extra charges for additional metering costs.