Solar Energy FAQ
Q: What are the different types of solar energy technologies?
Q: What are the federal and state tax credits?
Q: What are other incentives for investing
in solar energy?
Q: What effect does a solar energy system
have on the value of a home?
Q: What kind of payback can I expect on my solar energy system?
Q: What are the different types of solar
energy technologies?
There are four main types of solar energy technologies:
- Photovoltaic (PV) systems, which convert sunlight directly
to electricity by means of PV cells made of semiconductor materials.
- Concentrating solar power (CSP) systems, which concentrate the
sun's energy using reflective devices such as troughs or mirror
panels to produce heat that is then used to generate electricity.
- Solar water heating systems, which contain a solar collector
that faces the sun and either heats water directly or heats a
"working fluid" that, in turn, is used to heat water.
- Transpired solar collectors, or "solar walls," which use solar
energy to preheat ventilation air for a building.
Q: What are the federal and state tax credits?
Yes, The federal government currently offers a 30% tax credit the
first year of purchasing a solar system. In addition to the Federal
Credit, North Carolina offers a 35% tax credit the first year of
purchasing a solar system. However, the North Carolina tax credits
are limited to a maximum of $1,400 for solar hot water installations,
$10,500 for photovoltaic installations, and $14,000 for combined
solar hot water and photovoltaic installations. Use the following
link for information on other state tax credits, http://www.dsireusa.org/.
Q: What are other incentives for investing in solar energy?
There are many incentives for purchasing solar. These vary from state-to-state. Some common incentives include:
- Higher resale value for my property
- Clean electric generation and water heating
- Stable electric cost
- Backup power for utility outage
- Fight climate change / global warming
- Create secure electricity supply
- Political statement for a renewable energy future
- Feeling of empowerment
- Sending electricity back to the utility (net metering) is cool
- Solar energy just makes sense
Q: What effect does a solar energy system have on the value of a home?
Energy conservation and renewable energy generation adds value to a
home. Surveys have shown that for every $1,000.00 saved per year,
$20,000.00 is added to a home's value. Making Solar energy can be
one of the best home improvement investments.
Q: What kind of payback can I expect on my solar energy system?
Payback is immediate, if you finance your solar system your payments
would typically be less than the electric bill that it replaces.
A solar system will also add value to your property, reduce your
monthly expenses and insulate you from rising energy costs. Depending
on the type of system installed you will often recover all your
investment in a solar hot water system within 5-7 years for home
owners and 3-6 years for business. For photovoltaic systems you
will often recover all your investment within 8-12 years for home
owners and 5-7 for businesses. However, as rates increase the time
it will take to fully recoup your investment will improve.
